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COURSE OUTLINE (EVEN SEMESTER) AY 2020-21

Title of the Subject: Law of Taxation -1

Semester: VI
Name of the Faculty:Dr. P. Sree Sudha, Associate Professor
Total No. of Hours: Min 60
Credits: 4

OBJECTIVES OF THE COURSE

 To acquaint the students with the legal regime governing the direct taxes.
 To gain knowledge and understanding of the provisions of the direct tax laws.
 To acquire the ability to apply the knowledge of the provisions of the direct tax laws to the
various situation in actual practice.
 To develop the skill of independent thinking and creativity in the field of direct tax laws
OUTCOMES OF THE COURSE

 After completion of the course the student can have following take aways.
 Gains knowledge on the pricniples of direct taxation system of India.
 Acquaint with the knowledge of computation of income tax.
 Idea on various avenues for tax planning and tax management.
 Etable to file an income tax return.
 Awareness on the compliance of tax law.

STRUCTURE OF THE COURSE

Unit UNIT 1 No. of
No. Topic: INTRODUCTION CASES FOR REFERENCE Hours
60
1 General Principles of Taxation
1.1 C.I.T. v. G.R. Karthikeyan 1993
Introduction, Constitutional provisions, Supp (3) SCC 222
History of income tax 1
1.2 Definition of Income, Agriculture Income Mehboob Productions (P) Ltd. v 4
CIT (1977) 106 ITR 758 (Bom)
Bacha F. Guzdar v. C.I.T.,
Bombay AIR 1955 SC 74
C.I.T. v. Benoy Kumar Sahas Roy
AIR 1957 SC 768
Dooars Tea Co. Ltd. v CIT - 1962
AIR 186 1962
C.I.T v. All India Tea and
Trading Co. - 1977 Tax L.R.
1433 (Cal.)
K. Lakshmanan & Co. v. C.I.T.
(1998) 9 SCC 537
NagiReddi v CIT (1984) 147 ITR 337 (Mad)
1
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1.3 Narottam and Parekh Ltd. v.

C.I.T., Bombay City AIR 1954
Bom. 67
The Citizens Cooperative Society
Ltd vs. ACIT Section 80p
CIT Vs. Delhi Gymkhana Club
Ltd., 155 ITR p.373 (Delhi)
CIT Vs. Bombay Oilseeds & Oil
Exchange Ltd., 202 ITR pp.198,
206, 210 (Bom.)
CIT Vs. Adarsh Co-operative
Housing Society Ltd., 213 ITR
pp.677, 694 (Guj.)
CIT Vs. Royal Western India Turf
Club Ltd., 24 ITR p.551 (SC) 
CIT Vs. Calcutta Stock Exchange
Association Ltd., 36 ITR p.222
Basic concepts: income, person, assessee, (SC).
assessment year, previous year 5
1.4 C.I.T v. Sunil Kinariwala A.I.R.
Finance Act 2003. S.C. 668 1
1.5 V.V.R.N.M. Subbayya Chettiar v.
C.I.T. AIR 1951 SC 101
Residential status of assessee 1
1.6 scope of total income, incomes which do CIT v Gopala Naicker Bangaru
not form part of total income (i.e. (2010) 46 DTR 280 (Mad)
exempted income) 1
1.7 U.P. Bhumi Sudhar Nigam v CIT
Difference between Diversion of Income (2005) 280 ITR 197 (All)
and Application of Income 1
1.8 National Cement Mines
Industries Ltd. v CIT (1961) 42
ITR 69 (SC)
CIT v Saurashtra Cement Ltd.
(2010) 325 ITR 422 (SC)
ACIT vs Meenakshi Khanna
(2013- TIOL880ITATDEL
CIT v Rani Shankar Mishra
(2010) 320 ITR 542 (Del).
CIT v David Lopes Menezes
(2010) 195 Taxman 131: (2010)
Vol 112 (10) Born LR 4655
Revenue Receipt and Capital Receipt 3
UNIT 2
Topic: Computation of income under various heads
2.1 Income under the Head Salaries The Commissioner of Income Tax 1
TDSv.ITC Ltd. & Another (High
Court of Delhi) 2011 (5) AD
(DEL) 155
2
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2.2 CIT vs. Poddar Cement Pvt Ltd.

- 226 ITR 625 (SC)]
Chennai Properties and
Investment Limited 277 CTR 185
(SC)]
Income from Household property 1
2.3 East West Hotels Ltd. v. DCIT
(2009) 309 ITR 149 (Kar.)
CIT v. Geoffrey Manners and Co.
Income from Business Profession Ltd. (2009) 315 ITR 134 (Bom.) 2
2.4 Vodafone International Holdings
B.V vs. Union of India [2012]
204 Taxman 408
ITO v. M/s Zinger Investments
(P) Ltd [TS-437-ITAT-
Income from Capital Gains 2013(Hyd)] 3
2.5 CIT v. Rajasthan Wires (P) Ltd.
(2003) 130 Taxman 93 DP
(Mag.).
Income from Other Sources 1
2.6 Ram Knawar Rana vs.ITO [2016
71Delhi Tri]
Manish Chhabra v.CIT [2011]46
Incomes which do not Form Part of SOT 189 (Mum.)
Total Income (Section 10 to 13A) 1
2.7 Tema Exchangers Manufactures
Deductions – Section 80 Ltd. Vs ACIT –ITA 415 of 2004 1
2.8 Dwarkadass Leeladhar v. CIT
Set off and Carry forward of Losses (1963) 47 ITR 619 (Ker.) 1
2.9 Yashwant Chhajta v. CIT [2013]
214 Taxman 280 (HP)
Clubbing of Income 1

UNIT 3
Topic: Business Connection/ Permnant Establishment
3.1 Section 9 Sanofi Pasteur Holdings SA vs. 3
Dept. of Revenue, GOI
(WP 1421 of 2010 dated 15-02-
2013, Andhra HC)
CIT Vs. Neyveli Lignite
3
 4

Corporation Ltd. (243 ITR 459

Mad HC)
Ishikawajima-Harima Heavy
Industries Ltd. Vs DIT [(2007)
288 ITR 408 (SC)]

Characterization of Income Tata Consultancy Services Vs.

State of AP (271 ITR 401 SC) 2
CIT Vs. Samsung Electronics Co.
Ltd. & Others (245 CTR (Kar)
481)
Asia Satellite
Telecommunications Co. Vs. DIT
(332 ITR 340)
Formula One Championship
Ltd. v. CIT (SC Civil Appeal No.
Royalties 3849 of 2017).
3
CIT vs. M/s Kotak Securities
Limited 2016-TIOL-37-SC-IT
Fees for Technical Services
1
UNIT 4
Topic: Powers Functions of IT Authorities

4.1 In Pooran Mal v. The Director of

Inspection (Investigation), New
Delhi and Or 1974 93 ITR 505
SC
M. Narayanan & Bros. v. Asstt.
CIT [2011] 201 Taxman 207/ 13
taxmann.com 49 (Mad.)
Search, Seizure CIT Vs. Chandrakumar Jethmal
Survey Kochar (2015)55Taxmann.com
292 (GHC) 3

4.2 Penalties and Prosecutions, , Appeals & Union of India vs Dharmendra 3

Revision Textile [2008] 166 TAXMAN 65
(SC ) 
JCIT, Surat vs Saheli Leasing &
Industries Ltd  [2010] 191
TAXMAN 165 (SC)
CIT vs Reliance Petro products
Pvt Ltd [2010] 322 ITR 158
CIT v/s Mahavir Irrigation Pvt.
Ltd. 
DCIT Vs. Shri Suresh Karmakar
(ITAT Kolkata)
Appeal Number : I.T.A No.
4
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1399/Kol/2015 -01/11/2017
4.3 Brij Lal v. Commissioner of
Income Tax [2010] [328 ITR
Income-tax Settlement Commission 477] 1

UNIT 5
Topic: Double Taxation Relief , Transfer Pricing and Contemporary Areas of Income Tax Law

5.1 Trans Asian Shipping Services

Pvt. Ltd. vs. Commissioner of
Income Tax– I.T.A. 128/2012 and
I.T.A.. 129/2012 (the judgement
was pronounced on 23rd January,
2015 )
West Asia Maritime Ltd.,
Tonnage Tax Chennai vs Department Of 3
Income Tax on 8 November, 2010
5.2 Mayawati vs. CIT (2010) 321 ITR
349 (Del)
Black Money Recovery Act Tata International Ltd. vs. DCIT 3
(2012) 52 SOT 465
5.3 Apollo Tyres Limited vs CIT (255
ITR 273) (SC)
Malayala Manorama Co. Ltd. v.
Minimum Alternate Tax(MAT) CIT (2008) 300 ITR 251 3

5.4 C.I. T. v. Vishakhapatnam Port

Trust - (1983) 144 ITR (AP)
DCIT v. Turquoise Investment &
Finance Ltd. [2008] 300 ITR 1
Delhi Bench of Tribunal (in the
Double Tax Avoidance Agreements case of Daler Singh Mehndi)
(DTAs) -GBTA/05/2018 3

5.5 McKinsey Knowledge Centre

India Pvt Ltd v Pr. CIT (Delhi 6)
Petition for Special Leave To
Transferpricing Appeal ( C ) No.(s) 1785/2019 3
with SLP( C ) No. 1786/2019

Text Books
Compulsory Readings
Sl. Author/s Title of the Book Edition and Publisher
No.
1. Singhania, Dr. V. Students’ Guide To Income Latest edition, Taxmann
& Singhania, Dr. Tax Publication Pvt. Ltd., New Delhi
K.
2. Ahuja, Dr.Girish Professional Approach to Latest edition, Bharat Publication
& Gupta, Dr. Direct Taxes, Law and Law House Pvt. , Ltd., New Delhi
5
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Ravi Practice

3. Rajaratnam, S. Minimum Alternate Tax 8th edn., Snow White Publication,

(MAT) Mumbai (2019-20).
4. Chaturvedi, K. & Companion to chaturvedi Latest edition, Vol. 6A(1)&(2),
Pithisaria, S.M.;, & pithisaria’s Income Tax Lexis Nexis Butterworths Wadhwa,
Law Nagpur (2020).
5. Kailash Rai Taxation Laws Allahabad Law Agency

Books for Reference

Reference Books
Sl. Author/s Title of the Book Edition and Publisher
No.
1. Rajratnam, S. Sampath Iyengar’s Law 10th edn.,Vol. 1-8, Bharat Publication,
(Rev.) of Income Tax New Delhi (2005).
2. Singhania, Dr. Direct Taxes, Law and 43nd edition, Taxmann Publication Pvt.
V. & Singhania, Practice Ltd., New Delhi
Dr. K.
3. Vayas, Dinesh The Law and Practic of 12th edn.,Vol.I & II, Butterworths, New
(ed.); Kanga, Income Tax Delhi
Palkhivala and
Vyas
4. Dr. Vinod K Students' Guide to  Taxmann Publications, New Delhi,
Singhania and Income Tax University 2019
Dr. Monica Edition
Singhania

Journals
 Income Tax Reporter (ITR)
 All India Reporter (AIR)