Gist of recent important tax caselaws and judgements

INCOME TAX ACT

SECTION 11

CHARITABLE OR RELIGIOUS TRUST - EXEMPTION OF INCOME FROM PROPERTY HELD UNDER

Investment in specified securities : Where shares of co-operative banks were subscribed only for purposes of obtaining loan for furtherance of objects of trust, section 11/12 exemption could not be denied - Commissioner of Income-tax v. Dr. Vikhe Patil Foundation (2014) 42 taxmann.com 190 (Bombay)     SECTION 37(1) BUSINESS EXPENDITURE - ALLOWABILITY OF ESOP : Where in terms of Employees Stock Purchase Scheme (ESOP), assessee company offered shares of its parent company to employees, difference between fair market value of shares of parent company on date of issue of shares and price at which those shares were issued by assessee to its employees was to be regarded as expenditure incurred for business purpose allowable under section 37(1) - Novo Nordisk India (P.) Ltd. v. Deputy Commissioner of Income-tax (2014) 42 taxmann.com 168 (Bangalore - Trib.)       SECTION 54F CAPITAL GAINS - EXEMPTION OF, IN CASE OF INVESTMENT IN RESIDENTIAL HOUSE Construction : Where construction of residential house takes place prior to date of transfer of long term capital asset, assessee's claim for deduction under section 54F cannot be allowed - Smt. Ushaben Jayantilal Sodhan v. Income-tax Officer (2014) 42 taxmann.com 175 (Ahmedabad - Trib.)       SECTION 68 CASH CREDIT Gift : Gift from brother being not substantiated by any evidence, was to be assessed under section 68 - K. Sivakumar v. Assistant Commissioner of Income-tax (2014) 42 taxmann.com 202 (Madras)