Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Kumar Urban Development Ltd. v. ITO (2020) 84 ITR 17 (SN) (Pune) (Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Sufficient interest-free funds available for investment in sister concerns-Interest on borrowings not to be disallowed.

Rajkalp Mudraalaya Pvt. Ltd. (2020) 84 ITR 4 (SN.) (Ahd.) (Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Capitalisation of interest paid up to date of installation of machinery-Interest relating to assessee’s own funds utilised in purchase to be excluded in computing the interest to be capitalized.

Assetz Infrastructure Pvt. Ltd. v. Dy.CIT (2020) 84 ITR 59 (SN) (Bang.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Interest-free advances received from customers were available-Interest-free loans given to subsidiaries-Proportionate disallowance of interest not warranted.

Kumar Urban Development Ltd. v. ITO (2020) 84 ITR 17 (SN) (Pune) (Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Share application money pending allotment at year end-Not to be treated as investment yielding exempt income. [R. 8D]

Dy.CIT v. Priyal International P. Ltd. (2020) 84 ITR 50 (SN) (Ahd.) (Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Interest-Disallowance of interest on net interest-Higher interest income-No disallowance can be made-Sufficient interest free funds-Presumption that investment and advances were made out of such funds-No interest to be disallowed. [S. 36(1)(iii), R. 8D]

Dy.CIT v. Godrej Properties Ltd. (2020) 84 ITR 13 (SN) (Mum.) (Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Interest-Own funds more than the investment-Presumption is investment is from own funds-No disallowance of interest can be made-Erroneous disallowance shown in the return-Indirect expenses-Only investments actually yielding exempt income to be considered for working out disallowance-Assessment cannot be based on consent or acceptance of assessee either in return or during course of assessment or Appellate Proceedings. [S. 143(3), R. 8D(2)(iii), Art. 265]

Assetz Infrastructure Pvt. Ltd. v. Dy.CIT (2020) 84 ITR 59 (SN) (Bang.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Not earning any dividend income during year and not claiming exemption-Disallowance cannot be made. [R. 8D]

Shaheed Kartar Singh Saraba Charitable Trust (Regd.) v. Dy.CIT(E) (2020) 84 ITR 27 (SN) (Chd.)(Trib.)

S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Benefit to Trustees-Interest rate of 10% was paid to trustees on unsecured loan from Trustees-Exemption cannot be denied. [S. 11, 12A, 80G]

ACIT v. A. Shama Rao Foundation (2020) 84 ITR 49 (SN) (Bang.) (Trib.)

S. 11 : Property held for charitable purposes-Corpus donations-Capital receipts-Not taxable-Direction of the CIT(A) is held to be valid. [S. 2(24(iia), 12AA]

Eygbs (India) LLP v. Dy.CIT (2020) 84 ITR 48 (SN) (Bang.)(Trib.)

S. 10AA : Special economic zones-Transfer pricing adjustment-Deduction allowable. [S. 92C]