Author: ksalegal

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CIT v. Hongkong and Shanghai Banking Corpn. Ltd. (2019) 267 Taxman 502 / 111 taxmann.com 284 (Bom.)(HC) Editorial : SLP of revenue is dismissed as the tax effect involved of less than 2 crores, CIT v. Hongkong and Shanghai Banking Corpn. Ltd. (2019) 267 Taxman 501 (SC)

S. 44C : Non-residents-Head office expenditure-Entire expenditure was for purposes of head office-No restrictions in terms could be imposed-Order of Tribunal is affirmed. [S. 260A]

Boskalia International Dredging v. DIT(IT) (2019) 182 DTR 148/(2020) 313 CTR 360 (Bom.)(HC)

S. 44BB : Mineral oils–Computation-Unabsorbed depreciation-Carried forward from earlier year-Cannot be set off against while computing the profits and gains of eligible business u/s. 44BB of the Act. [S. 32(2)]

PCIT v. Swananda Properties (P.) Ltd. (2019) 267 Taxman 429 (Bom.)(HC)

S. 43CA : Transfer of assets-other than capital assets-Full value of consideration-stock in trade-Agreement value–Stamp valuation-Provision introduced with effect from 1-4-2014 for deeming consideration received on sale of goods/assets on basis of stamp duty valuation would be applicable prospectively-Rejection of books of account is held to be not justified. [S.50C, 145]

CIT v. Apollo Tyres Ltd. (2019)419 ITR 100/(2020) 274 Taxman 258 (Ker.)(HC)

S. 43B : Certain deductions on actual payment –Bonus-Allowable as deduction in the year of payment.[ S.37(1) ]

V.R. Swaminathan v. ITO (2019) 267 Taxman 208/ 184 DTR 1/(2020) 313 CTR 738 (Mad.)(HC)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability – Matter remanded to the AO consider the evidences and pass the order. [S. 260A]

Akrati Promoters And Developers v. DCIT (2019) 183 DTR 204 / (2020) 268 Taxman 83 (All.)(HC)

S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable-Payment made by the assessee firm to three sub-contractors out of 21 work contracts given by it was to the relatives of the partners of the firm-20% disallowance is held to be justified. [S. 37(1), 40A(2)(b)]

CIT v. S.M. Anand (2019) 182 DTR 153 (Karn.)(HC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Second proviso to S.40(a)(ia) inserted by the Finance Act, 2012 is declaratory and curative in nature and it has retrospective effect from 1st April 2005, being the date from which sub-cl.(ia) of S. 40(a) was inserted–No disallowance can be made for failure to deduct tax at source. [S. 201(1), 271C]

PCIT v. Manugraph India (P) Ltd. (2019) 267 Taxman 437 (Bom.) (HC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source– Subsidiary company-Reimbursement of expenses-Not liable to deduct tax at source-No disallowance can be made. [S. 195]

Balmer lawrie & Co. Ltd. v. CIT (2019) 310 CTR 724 / 181 DTR 401 (Cal.)(HC)

S. 37(1) : Business expenditure–Capital or revenue–Proportionate rent and lease premium-Held to be revenue expenditure.

PCIT v. Reliance Natural Resources Ltd. (2019) 267 Taxman 644 (Bom.)(HC)/Editorial : SLP of Revenue dismissed , PCIT v. Reliance Natural Resources Ltd. (2022) 286 Taxman 435 (SC)

S. 37(1) : Business expenditure–Capital or revenue–Foreign currency convertible Bond-(FCCB) issuing expenses–Held to be allowable as revenue expenses.