Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


ACIT v. Ashok Radhakishen Mehra (2021) 188 ITD 663/ 86 ITR 19 (SN) (Mum.)(Trib.)

S. 43B : Deductions on actual payment-Interest payable to Bank-Provision that conversion of interest into loan not equivalent to actual payment-Payment through overdraft account or cash credit account-Not disqualified. [S. 43B(d), 43B(e)]

Suresh Chunnilal Sharma v. ITO (2021) 86 ITR 22 (SN) (Pune)(Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchase of stock-in-trade-Disallowance is affirmed. [R. 6DD]

Green Valley Tower Pvt. Ltd. v. ACIT (2021) 86 ITR 1 (Delhi)(Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchase of land-Amount paid neither debited to profit and loss account nor claimed as deduction.

ACIT v. Arvind Srinivasan (2021) 86 ITR 84 (Chennai)(Trib.)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchase of capital asset or investment-No disallowance can be made.

United Teleservices Ltd. v. ACIT (2021)86 ITR 36 (SN) (Kol.)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payees declaring payments in returns and paying tax thereon-AO was directed to verify and decide according to law.

ACIT v. Parag Fans and Cooling System Pvt. Ltd. (2021) 86 ITR 598 (Indore)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Settlement of loan provision of deduction at source is not applicable-Amount of sales written as bad debt which is reflected in profit and loss account-Allowable as deduction subject to verification. [S. 36(1)(vii)]

A. O. Smith India Water Products Pvt. Ltd. v. Dy. CIT (2021) 86 ITR 38 (SN) (Bang.)(Trib.)

S. 37(1) : Business expenditure-Provision for sales and advertisement expenses-Liability crystallising only in the following year-Disallowance is held to be proper-Advertisement expenses-Matter remanded-Provision for warranty-Allowable only if amount is claimed during year. [S. 145]

Deloitte Haskins And Sells v. ACIT (2021) 86 ITR 121 (Delhi)(Trib.)

S. 37(1) : Business expenditure-Firm of Chartered Accountants-Part Payment of subscription fees through Mumbai entity as reimbursement of its share to international group entity-Allowable as deduction-Legal and professional fees-Criminal complaint filed against partner in matter related to business of firm-Allowable as business expenditure. [S. 195]

ACIT v. Claridges Hotels Pvt. Ltd. (2021) 86 ITR 402 (Delhi)(Trib.)

S. 37(1) : Business expenditure-Payee relative of promoter-AO can not decide the reasonable and commercial expenditure-Payment to consultant-Failure to procure business-No disallowance can be made-DTAA-India-UAE. [S. 40(a)(i), Art.14(7), 22(1)]

ACIT v. Ariba Foods Pvt. Ltd. (2021) 86 ITR 174 (Indore)(Trib.) ACIT v. Vyanktesh Plastics and Packaging Pvt. Ltd (2021) 86 ITR 174 (Indore)(Trib.) ACIT v. Famous Vanijya Pvt. Ltd. (2021) 86 ITR 174 (Indore)(Trib.)

S. 37(1) : Business expenditure-Power and fuel expenses-No defects in the books of account-Ad hoc disallowance is held to be not justified-Employees’ contribution to provident fund and employees’ state insurance corporation-Delay in depositing-Deduction allowable. [S. 36(1)(va)]