Year: 2020

Archive for 2020


PCIT v. Realvalue Realtors (P) Ltd (2020) 113 taxmann.com 62/ 269 Taxman 64 (Bom.)(HC)

S. 68 : Cash credits–Share capital-Substantial part of share application money was received in earlier assessment years– Balance amount sufficient evidence was produced such as identity and genuineness-Deletion of addition is held to be valid.

Akrati Promoters and Developers. V. DCIT (2020) 268 Taxman 83 (All.)(HC)

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable-Sub-contractors-Relatives of partners–20% of disallowance up held by the Tribunal is affirmed. [S. 37(1) ]

CIT v. Punalur Paper Mills Ltd. (2020) 268 Taxman 47 (Ker.)(HC)

S. 37(1) : Business expenditure–Cheque issued–Realised in next assessment year–Cheque is not dishonoured but encashed, payment relates back to date of tendering of cheque and date of payment would be date of delivery of cheque-Allowable as deduction during previous year.

CIT v. Punalur Paper Mills Ltd. (2020) 268 Taxman 47 (Ker.)(HC)

S. 32 : Depreciation-Passive use of the assets-Unabsorbed depreciation-Business was stopped and assets were not in use for period of 24 years-Depreciation is neither allowable nor set off of carried forward of depreciation for previous year. [S. 32 (2), 72]

CIT v. Poorvanchal Vidyut Vitran Nigam Ltd. (2020) 268 Taxman 132 (All.)(HC)

S. 32 : Depreciation–Amalgamation-Receipt of the Auditors report subsequently-Directed to allow the depreciation on the basis of Auditor’s report.

CIT v. Punalur Paper Mills Ltd. (2020) 268 Taxman 47 (Ker.) (HC)

S. 23 : Income from house property-Annual value–Arrears of rent – Arrears of rent accruing in a prior years, not received in those years, could not be assessed in a subsequent year when same were received as income from house property-Arrears of rent attributable to preceding years cannot be brought to tax under the head income from other sources-Provision of section 25B inserted by Finance Act, 2000 with effect from 1-4-2001 would apply prospectively. [S. 22, 25B, 56]

PCIT v. Keshav Power Ltd (2019) 112 taxmann.com 323 / (2020) 268 Taxman 332 (Delhi) (HC) Editorial: SLP of revenue is dismissed as the tax effect is less than Rs. 2 crores PCIT v. Keshav Power Ltd (2020) 266 Taxman 331 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction-AO has not recorded the satisfaction how the disallowance made by the Assessee is not correct–Deletion of disallowance by the Tribunal is affirmed. [R. 8D]

PCIT v. Dish TV India Ltd (Bom.)(HC) (UR).

S. 14A : Disallowance of expenditure-Exempt income-In the absence of any exempt income, disallowance is not permissible. [R. 8D]

Goa Industrial Development Corporation v. CIT (2020)421 ITR 676 /187 DTR 175/ 313 CTR 589 / 271 Taxman 58 (Bom.)(HC)

S. 12AA : Procedure for registration–Trust or institution- Charitable purpose-Cancellation of registration is held to be not valid- Orders made by the CIT and ITAT are quashed and the registration held by the GIDC is ordered to be revived. [S. 2(15), 11, 12A]

CIT v. United India Insurance Company Employees Pension Fund. (2020) 268 Taxman 13 / 186 DTR 217 / 313 CTR 65(Mad.)(HC)

S. 10(23AAA) : Funds established for welfare of employees-No renewal was required once a Pension fund set up by assessee approved by concerned authority. [S.10(25), 12A]