Month: June 2019

Archive for June, 2019


CIT v. Nandkishor Huaschand Jalan (2019) 412 ITR 357 (Guj.)(HC)

S. 69A : Unexplained money–Bogus purchases- Sundry creditors—Disallowance by Assessing Officer as bogus purchases—Tribunal confirming the 25% of profit embedded in credits–Held to be justified. [S. 37(1), 145]

CIT v. Amritha Cyber Park (P.) Ltd. (2019) 412 ITR 199/ 263 Taxman 546 / 180 DTR 285(Ker.)(HC)

S. 69 : Unexplained investments–Advance of rent received for premises-Unclaimed balance cannot be treated as unexplained investment or cash credits–Assessable as business income of the relevant assessment year. [S. 5, 28(i), 68]

Sivagami Roja Muthiah v. DCIT (2019) 412 ITR 299 (Mad.)(HC) Vallikannu Nagarajan v. DCIT (2019) 412 ITR 299 (Mad.)(HC)

S. 48 : Capital gains–Cost Of Acquisition—Sale of books from inherited Library—Indexation – Failure to prove cost of acquisition as on 1-4-1981—Estimation of cost of acquisition at forty per cent. of sale price is held to be justified.[S. 45]

South India Corporation Ltd. v. ACIT (2019) 412 ITR 239/ 177 DTR 337 (Ker.)(HC)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Refund of sales tax consequent on decision of High Court—Pendency of appeal before Supreme Court-Amount received assessable as income.

CIT v. Chakiat Agencies Pvt. Ltd. (2019) 413 ITR 113 / 263 Taxman 126/ 179 DTR 265/ 311 CTR 886(Mad.)(HC)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability -Amounts collected by shipping agent for payment to port Trust Authority for the years 1994-99—Dispute was settled by passing final order fixing the storage charges fixing the charges on January 15, 2016–there was no claim against the amount collected -Amount collected was rightly treated as income of the assessee .

South India Corporation Ltd. v. ACIT (2019) 412 ITR 239/ 177 DTR 337 (Ker.)(HC)

S. 37(1) : Business expenditure—Capital or revenue-Expenditure on repair of office room—Held to be capital expenditure.

Chemplast Sanmar Ltd. v. ACIT (2019) 412 ITR 323 (Mad.)(HC)

S. 37(1) : Business expenditure–Capital or revenue–Preoperative expenditure–new line of business-Business abandoned subsequently–Allowable as revenue expenditure.

Gopal Das Estates and Housing Pvt. Ltd. v. CIT (2019) 412 ITR 489/ 263 Taxman 8/ 176 DTR 193 (Delhi)(HC)

S. 37(1) : Business expenditure–Completion contract method- Compensation paid to allottees of flat who refuse to take up the allotment due to change in Regulation of Municipal Corporation- Allowable as business expenditure-Interest and guarantee commission-Service Charges — Held to be deductible. [S. 145]

Infrastructure Development Finance Co. Ltd. v. ACIT (2019) 412 ITR 115/ 262 Taxman 483 /(2020) 190 DTR 137(Mad.)(HC)

S. 36(1)(viii) : Eligible business-Special reserve-Providing long-term finance for Infrastructure Projects and facilities—Provision for bad and doubtful debts – held to be allowable. [S. 36(1)(viia)(c)]

Stabilix Solutions (P.) Ltd. v. ITO (2019) 412 ITR 82 (Ker.)(HC)

S. 10B : Export oriented undertakings-New undertaking using building and machinery on lease from sister concern—”Transfer” Includes Lease—Not entitled to exemption.