Year: 2020

Archive for 2020


CIT v. IDBI Ltd ( Bom) (HC) (UR)

S. 147 : Reassessment – After the expiry of four years- No failure to disclose material facts which are necessary for assessment – Order of Tribunal is affirmed .[ S.14A, 40(a)(ia),115JB ,148,194J ]

PCIT v . Aristo Pharmaceuticals P.Ltd (2020)423 ITR 295/ 187 DTR 388 ( Bom) (HC)

S. 115WA: Fringe benefit tax – Relationship of employer and employee – Free medical samples distributed to doctors is in the nature of sales promotion – Not liable to pay fringe benefit tax .[ S.115WG ]

PCIT v. Bank of India ( Bom) (HC) (UR)

S. 115JB : Book profit – Provisions as it stood prior to its amendment by virtue of Finance Act, 2012, would not be applicable to a banking company governed by provisions of Banking Regulation Act, 1949- Companies which are not required to prepare its profit and loss account in accordance with part II & III of Schedule VI of the Companies Act , 1956 – Adjustment cannot be made . [ S.115JB(2) ,Companies Act , 1956 , S 211(2) , Banking Regulation Act, 1949 ]

PCIT v Sadhana Builders Pvt. Ltd. ( Bom) (HC) (UR)

S. 80IB(10) : Housing projects- Completion of project- Partial construction of project – Eligible for exemption .

DCIT v Manekchand Kothari (Mum) (Trib) (UR)

S. 69A : Unexplained money -Un explained jewellery – Deletion of addition by the CIT(A) is held to be justified . [ S.132(4) ]

Gaurav Triyugi Singh v ITO (2020) 423 ITR 531/ 188 DTR 128/ 315 CTR 748( Bom) (HC)www.itatonline.org

S. 68 : Cash credits -Identity of creditor established – Need not explain the source of the source – Addition confirmed by the Tribunal is deleted .

PCIT v SICOM Ltd (2020) 274 Taxman 58 ( Bom) (HC)

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Remission of loan by Government of Maharashtra cannot be assessed u/s 28(iv) or 41(1) of the Act – Order of Tribunal is affirmed [ S.28(iv ) ]

CIT v Gigabyte Technology (India) Ltd (2020) 421 ITR 21/ 195 DTR 334/ 273 Taxman 184 ( Bom ) (HC)

S. 37(1) : Business expenditure – Business loss- Write off of losses towards stock obsolescence in respect of Laptops and motherboards -Held to be allowable as revenue expenditure [ S.28(i), 145A ]

CIT v . Zuari Industries Ltd ( 2020) 420 ITR 323/ 185 DTR 281/ 312 CTR 416 // 115 taxmann.com 337 (( Bom) (HC)

S. 37(1) : Business expenditure – Capital or revenue – Payment to for the purpose of having continuous supply of limestone as a raw material – Held to be capital expenditure – Order of Tribunal directing for the payment to be amortised for a period of 8 years is held to be not valid – Question is answered in favour of the revenue . [ S.145 ]

CIT v . Zuari Industries Ltd ( 2020) 420 ITR 323 / 185 DTR 281/ 312 CTR 416/ 115 taxmann.com 337 ( Bom) (HC)

S. 36(1)(iii) :Interest on borrowed capital – Allowable as deduction though capitalised in the books of account .[ S. 43(1)Ex.8 ,145 ]