Author: ksalegal

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Kashmir Tubes v. ITO (2017) 85 taxmann.com 299(2018) 300 CTR 541 (J&K) (HC)

S. 80IB: Industrial undertakings – Manufacture –Process of galvanization amounted to ‘manufacture’ since the resultant product is a different commercial commodity having distinct use and is sold at a higher price.

Honda Motors Co. Ltd., In re (2018) 401 ITR 382/253 Taxman 402/ 301 CTR 159/ 163 DTR 113 (AAR)

S.48:Capital gains – Computation – Expenses incurred towards fees for computerization of share certificates in order to transfer them to escrow account is allowable as deduction .[ S.45, 112 ]

Maruti Udyog Ltd v. CIT (2018) 406 ITR 562/253 taxman 60/161 DTR 1 ( Delhi) (HC) Editorial: Affirmed in Maruti Suzuki India Ltd v CIT ( 2020) 114 taxmann.com 129 (SC) www.itatonline.org

S. 43B : Deductions on actual payment -Unutilised MODVAT credit representing excise duty paid of raw material/input at the end of year cannot be allowable as deduction

Kashmir Tubes v. ITO (2017) 85 taxmann.com 299(2018) 300 CTR 541 (J&K) (HC)

S. 43B: Deductions on actual payment – Employees provident fund -No disaalowance can be made , if deposted prior to due date of filing of return [ S.139(1)]

Oriental Bank of Commerce v. Addl. CIT (2018) 162 DTR 257 /254 Taxman 197 (Delhi)(HC)

S.37(1):Business expenditure –Bank- Provision for interest on over due deposits being ascertained liabilities which is crystallised during the relevant previous year is held to be allowable as deduction [ S.145 ]

Lissie Medical Institutions v. CIT (2018) 161 DTR 73/300 CTR 130 (SC)

S. 11 : Property held for charitable purposes – Application of income -Wrirte back of depreciation was allowed to be carried forward for application of income of subsequent years [ S.32 ]

Maruti Udyog Ltd v. CIT (2018) 406 ITR 562 / 253 Taxman 60/161 DTR 1 (Delhi) (HC )

S. 37(1): Business expenditure – Expenditure incurred fpr acqudsition of application software which was subsequently abandoned would be allowable in year of write off as revenue expenditure [S.145 ]

Jupiter Radios (Regd.) v. Dy. CIT (2017) 88 Taxmann.com 93 / ( 2018) 163 DTR 233 (Delhi)( HC)

S. 32A:Investment allowance- Development rebate -Transfer of asset within 8 years to the retiring partner , denial of benefit of investment allowance/development rebate was justified.[ S.2(47),34(3),35A ,155(4A)]

PCIT v. Adani Agro (P) Ltd. (2018) 253 Taxman 507 (Guj.)(HC)

S. 14A: Disallowance of expenditure – Exempt income – Assessing Officer cannot attribute administrative expenses for earning tax free income in excess of total administrative expenditure.[R.8D ]

PCIT v. Nirma Credit & Capital (P.) Ltd (2017) 85 taxmann.com 72 / ( 2018) 300 CTR 286/161 DTR 333 (Guj )HC)

S. 14A : Disallowance of expenditure – Exempt income -Net interest- Prior to its amendment with effect from 2-6-2016 , amount of expenditure by way of interest would be interest paid by assessee on borrowings minus taxable interest earned during financial year [ R.8D ]
Dismissing the appeal of the revenue , the Court held that ; Prior to its amendment with effect from 2-6-2016 , amount of expenditure by way of interest would be interest paid by assessee on borrowings minus taxable interest earned during financial year . (AY. 2008-09)
Nirma Credit & Capital (P.) Ltd (2017) 85 taxmann.com 72 / ( 2018) 300 CTR 286 (Guj HC)