Category: Tax Laws

Archive for the ‘Tax Laws’ Category

Catherene Thomas (Smt.) v. ACIT (2020) 78 ITR 18 (SN)(Cochin) (Trib)

S.45: Capital gains — Long-term capital gains — Transfer of land — Reference to Valuation officer — FMV as proposed by AO to be adopted for purposes of computation of capital gains [ S.48, 49 ]

Barnala Steel Industries Ltd. v. JCIT (2020) 78 ITR 29 (SN) (Delhi) (Trib)

S. 40A(3) : Expenses or payments not deductible — Cash payments exceeding specified limit — Assessee taking different stands before AO and CIT(A) – General remark that payment made in cash due to business exigencies not acceptable — Disallowance is held to be justified

Addl CIT v. National Research Development Corporation (2020) 78 ITR 56 (SN)(Delhi)(Trib)

S. 37(1) : Business expenditure — Expenses prohibited by law — Grants — Assessee receiving grants on annual basis and grants used in accordance with directions of Government — AO allowing salary expenses in preceding year — AO should not have taken a different stand in current year — Salary paid to all old employees who worked for Assessee and expenses genuine — Expenses wholly and exclusively for purpose of business, hence expenses are deductible.

Barnala Steel Industries Ltd. v. JCIT (2020) 78 ITR 29 (SN) (Delhi) (Trib)

S.37(1): Business expenditure – adhoc addition on account of weight and rate difference – No evidence to establish basis of arriving the amount debited in P&L Account — Addition justified.

AVM Productions v. ACIT (2020) 78 ITR 42 (SN) (Chennai) (Trib)

S. 32 : Depreciation — Cost of construction of office Block – Compensation paid for easement rights not accepted by Tribunal in earlier years — High Court admitting Assessee’s appeal against Tribunal not a reason to take a view in favour of Assessee — Assessee not entitled to depreciation.

Century Link Technologies India Pvt. Ltd. v. DCIT (2020) 78 ITR 71 (SN) (Bang) (Trib)

S. 32 : Depreciation – Capital or Revenue expenditure — Expenditure on leasehold premises – Nature of expenditure to be examined before applying provision relating to ownership of asset

Deepak Garg v. ITO (2020) 78 ITR 40 (SN.) (Delhi) (Trib)

S. 28(i) Business Income — Benefit or amenity arising from business — Remission or cessation of trading liability — Assessee introducing gold left behind by his father into his business and showing trade liability in his name and in name of other family as a whole or individual legal heir — AO accepting purchase of gold and approving trading results — Not a case of Assessee introducing unaccounted or unexplained money into capital or of a trade liability ceasing to exist. [S.41(1) ]

DCIT v. Villoo Zareer Morawala Patel (Smt.) (2020) 78 ITR 17 (SN.) (Bang) (Trib)

S. 15 : Salaries — Director Of Company — Assessable on accrual basis and not on receipt basis — Even if higher salary proposed by employer Not approved By Central Government — AO to examine factually if what is claimed by employer as deduction has been offered to tax by Director.

ACIT v. Amartara P. Ltd. (2020) 78 ITR 46 (SN) (Mum)(Trib)

S. 14A : Disallowance of expenditure – Exempt income – Investments Not generating any exempt income – Disallowance of interest on borrowed funds utilized for making investments cannot be made [R.8D ]

PCIT v. Gulbrandsen Chemicals Pvt .Ltd ( 2020 ) 119 52 ( Guj) (HC)

S. 92C : Transfer pricing – Arm’s length price – The OECD guidelines recognise that barring exceptional cases, the tax administration should not disregard the actual transaction or substitute other transactions for them- The examination of a controlled transaction should ordinarily be based on the transaction as it has been actually undertaken and structured by the associated enterprises- adoption of TNMM as the Most Appropriate Method of arriving at ALP cannot be termed as perverse or contrary to the evidence on record.- Difference of opinion as to the appropriateness of one or the other method cannot be gone into in an appeal [ S.92CA ,260A ]