Category: Tax Laws

Archive for the ‘Tax Laws’ Category


PCIT v. Omprakash Dhanwani (2018) 103 CCH 0493 /(2020) 422 ITR 315 (MP)(HC)

S.68: Cash credits — Unexplained money — Estimation of gross profit – Day to day stock register is maintained – Deletion of addition is held to be justified . [ S.153A ]

Adhithiya Gears P. Ltd. v .ACIT (2019) 106 CCH 0435 /(2020)422 ITR 218/ 275 Taxman 350 (Mad)(HC)

S. 68 : Cash credits – Affidavit filed by the asesssee was not rebutted -Arbitrary rejection of explanation is not proper – Duty Assessing Officer to conduct proper enquiry-Matter remanded

PCIT v. Dilipkumar Bapusaheb Patole (2020)422 ITR 426 / 107 CCH 0456 / 275 Taxman 449 Guj)(HC)

S. 40(a)(ia): Amounts not deductible – Deduction at source – Payment to truck owners towards freight charges – Commission agent – Form 15I was collected within time -Deletion of disallowance is held to be justified .[ S.194C ]

CIT v. S. M. Anand (2019) 105 CCH 0508/(2020)422 ITR 209 (Karn)(HC)

S. 40(a)(ia): Amounts not deductible – Deduction at source -Recipient has declared the income – No loss to revenue – No disallowances can be made – Amendment with effect from 1-4-2013 is declarative and curative in nature . [ S.271C ]

CIT v. Seven Seas Distillery (Pvt.) Ltd. (2020)422 ITR 229 / 185 DTR 105/ 312 CTR 272/ 271 Taxman 188 (Mad) (HC)

S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident -Interest on foreign currency Loan —Specific exemption from Ministry of Finance for interest —Not liable to deduct tax at source – No disallowances can be made .[ S.10(15)(iv)(f),37(1), 195 ]

PCIT v. Gujarat Narmada Valley Fertilizer and Chemicals Ltd. (2019) 105 CCH 0504 / (2020) 422 ITR 164/ 192 DTR 233/ 316 CTR 722 (Guj) (HC)

S.37(1) : Business expenditure — Wholly and exclusively for the purposes of business – Donations made under Corporate Social Responsibility — Held to be deductible — Res Judicata — Not strictly applicable in Income-Tax proceedings — Consistency essential.

CIT . v Syndicate Bank (2020) 422 ITR 460 /107 CCH 0450 / 188 DTR 272 / 274 Taxman 522(Karn)(HC)

S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Schedule bank – Entitled to deduction to the extent provision is made in the accounts subject to the limit mentioned in S.36(1)(viia) of the Act .

CIT v. Shriram Investments (2019) 104 CCH 0737 /(2020)422 ITR 528 (Mad) (HC)

S.36(1) (iii): Interest on borrowed capital — Amount borrowed advanced at lower interest — Revenue authorities cannot substitute their own wisdom or notion about the rate of interest agreed to between the parties – Interest is deductible .

PCIT v .Gaursons Realty Pvt. Ltd. (2020)422 ITR 123 /104 CCH 0733/ 274 Taxman 512 (Delhi) (HC)

S. 36(1)(iii) :Interest on borrowed capital – Borrowed from banks and advanced to sister concern- Commercial expediency – Sufficient interest free fund was available – Deletion of disallowance is held to be justified .

PSTS Heavy Lift and Shift Ltd. v .Dy. CIT (2020)422 ITR 497 /107 CCH 0454 /193 DTR 193/ 317 CTR 172 (Mad)(HC)

S.28(i) : Business income — Income from house property —Main business is let out of property – Income assessable as business income [ S.22 ]