Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Ogene Systems India Ltd. v. ITO (2021) 88 ITR 2 (SN) (Hyd.)(Trib.)

S. 37(1) : Business expenditure-Bank guarantee to execute project-Bank recovering from the assessee-Loss in the ordinary course of business-No element of fines or penalties-Allowable as business expenditure.

ACIT v. Investment Trust of India Ltd. (2021) 88 ITR 566 / 211 TTJ 777/ 203 DTR 289 (Chennai) (Trib.) Dy. CIT v. HFCL Infotel Ltd. (2021) 88 ITR 566 / 211 TTJ 777/ 203 DTR 289 (Chennai)(Trib.)

S. 37(1) : Business expenditure-Premium payable on redemption of debentures-Spread over period of debenture.

Dy. CIT v. Trinetra Super Retail Pvt. Ltd. (2021) 88 ITR 116 (Mum.)(Trib.)

S. 32 : Depreciation – Rate of depreciation-Printer, Router, Scanner, Switches Forming Integral Part Of Computer System-Entitled To Depreciation At High Rate Of 60 Per Cent.-Bizerba weighing scales- Not part of computer-Not entitled to depreciation at 60 Per Cent.

KEC International Ltd. v. Dy. CIT (2021) 88 ITR 246 (Mum.)(Trib.)

S. 28 (i) : Business loss-Foreign exchange losses-Marked-to-market losses on hedging contracts-Allowable as deduction-Tribunal admitted additional grounds. [S. 37(1)]

Dy. CIT v. Trinetra Super Retail Pvt. Ltd. (2021) 88 ITR 116 / 210 TTJ 350 (Mum.)(Trib.) Golf View Homes Ltd. v. ACIT (2021) 88 ITR 423 / 212 TTJ 472 / 207 DTR 199 (Bang.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Not earned any exempt income-No disallowance can be made. [R. 8D]

ACIT v. Investment Trust of India Ltd. (2021) 88 ITR 566/ 211 TTJ 777 / 203 DTR 289 (Chennai) (Trib.) Dy. CIT v. HFCL Infotel Ltd. (2021) 88 ITR 566/ 211 TTJ 777/ 203 DTR 289 (Chennai)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Interest-Expenditure not incurred-No disallowance cannot be made-Other Expenses at 0.5 Per Cent. of average value of investments – Only investments which earned exempt income to be considered for computing average value of investments. [R. 8D]

Chirayu Charitable Foundation v. PCIT (2021)88 ITR 451 (Indore) (Trib.)

S. 12AA : Procedure for registration-Trust or institution-Colleges and hospitals-cancellation of registration-CBI report-No independent enquiry-Creditworthiness of donors and genuineness of transaction was established-Cancellation of registration was quashed. [S. 2(15), 12AA(3), 32, 133(6), Madhya Pradesh Societies Registration Act, 1973, S. 2]

Nazareth Hospital Society v. Dy. CIT(E) (2021) 88 ITR 44 / 212 TTJ 951 (All.)(Trib.)

S. 11 : Property held for charitable purposes-Donation to another charitable trust-Objects of donor and done are not same-Cannot be allowed as application of income-Not entitle to exemption. [S. 11(1)(a), 12A, 12AA]

ACIT(E) v. Mahendra Educational Trust (2021) 88 ITR 370 / 210 TTJ 350 / 200 DTR 81(Chennai)(Trib.)

S. 11 : Property held for charitable purposes-Non registration of trust does not render activities as non charitable advance to charitable object-Exemption cannot be denied-Diversion of fund-Only income which is violation of the provision can be taxed at maximum marginal rate and not whole income of the Trust. [S. 13(1)(c)]

Dy. CIT v. Altisource Business Solutions P. Ltd. (2021) 88 ITR 135 (Bang.)(Trib.)

S. 10A : Free trade zone-Computation-Gross total income-Exclusion of Telecommunication expenses from export turnover proper.