Year: 2020

Archive for 2020


Agson Global Pvt. Ltd. V. ACIT (2019) 76 ITR 504 (Delhi)(Trib.)

S. 37(i) : Business expenditure-Bogus purchases-Entire purchase and sale transactions duly recorded in regular books of account of all parties-Entire transactions routed through regular banking channels-No incriminating documents with respect to purchases and sales found in search-Purchases are genuine-Addition is held to be not justified.

Indian Coating and Laminating Corporation v. DCIT (2019) 76 ITR 320 (Luck.)(Trib.)

S. 37(1) : Business expenditure–Method of accounting-Ad-hoc disallowances of general expenses without rejecting the books of account- No disallowances can be made.[S. 145]

Metalloyods v. ITO (2019) 76 ITR 100 (Cuttack )(Trib.)

S. 37(1) : Business expenditure–Commission to the HUF from whom unsecured loan was borrowed–Commission paid to HUF is an allowable expenditure.

Rajinder Kumar Gupta v. DCIT (2019) 76 ITR 324 (Amritsar)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Interest-free loans to sister concerns-Interest-free funds available with assessee more than advance paid to its sister concerns-AO to decide in accordance with supreme court decision.

S. Sathyaraj v. ITO (2019) 76 ITR 387 (Chennai)(Trib.)

S. 32 : Depreciation-Unabsorbed depreciation-Set-off-Assessee admitting income from business and profession-Entitled to set off brought forward loss against such income. [S. 32(2)]

Standard Chartered Grindlays PTY Ltd. v. DDIT(IT) (2019) 183 DTR 105 / 201 TTJ 754 (Delhi)(Trib.)

S. 28(i) : Business loss-Genuineness of transaction-Amount paid by National housing bank (NHB) to assessee bank-but credited by assessee to the account of one Shri Harshad Mehta (HM)-subsequently such transaction got burnt in the fire of securities scam-Repayment of such amount to NHB-not allowed as business loss. [S. 44C]

Anju Sharma v. ITO (2019)76 ITR 350 (Chd.)(Trib.)

S. 28(i) : Business loss-Claim To Loss of stocks stored in agents’ godowns on account of insect infestation-Assessee giving specific details of purchase of wheat, copies of bills, vouchers-AO ought To have issued summons to entities from whom wheat purchased-claim not to be rejected on surmises, suspicion and conjecture-Stock loss in trading of wheat allowable.

Madhya Pradesh Madhya Kshetra Vidyut Viteran Company Ltd. v. DCIT (2019) 76 ITR 86 / 184 DTR 380 / 202 TTJ 359 (Indore)(Trib.)

S. 17(2) : Perquisite-Fringe Benefits-Supply of electricity to employees at concessional rates-concession to be treated as Fringe Benefit. [S. 2(33B), 15, 192]

McMl Systems Pvt. Ltd. v. ACIT (2019) 75 ITR 656 (Bang.) (Trib.)

S. 10A : Free Trade Zone–Loss in-unit situated outside the Software Technology Park (STPI) not adjusted against units within the STPI-Income enhanced–Deduction is allowable on enganced income-Expenses excluded from export turnover– Consequential exclusion from total turnover.

ITO v. Fish Poultry & Egg Marketing Committee (2019) 179 DTR 137 / 109 taxmann.com 17 (Delhi)(Trib.)

S. 10(26AAB) : Income of an agricultural produce market committee-Agricultural produce to be given a wider meaning.