Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


IKEA Trading India Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 415 / (2021) 186 ITD 473 (Delhi)(Trib.)

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Salary paid to Directors-Failure of the Assessing Officer to substantiate-Deletion of addition is held to be valid.

Peartree Enterprises Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 436 (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment Received as partner of joint venture-Amount paid to joint venture partner diverted by overriding title-Disallowance not sustainable.

Maharaja Shree Umaid Mills Ltd. v. Dy.CIT (2020) 83 ITR 498 (Jaipur)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission-Non-Resident-Matter remanded for verification. [S. 195]

Divya Creations v. ACIT (2020) 83 ITR 433 (Delhi)(Trib.)

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident –Service rendered outside India-Not liable to deduct tax at source.

Sitae Re P. Ltd. v. ITO (2020) 83 ITR 457 (Delhi)(Trib.)

S. 37(1) : Business expenditure-Loss on revaluation of business advances-Loss on account of foreign exchange rate fluctuation as on date of balance-sheet is allowable as deduction. [S. 28(1)]

Peartree Enterprises Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 436 (Delhi) (Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Expenses on repairs, supply of consumables, and recalibration of machinery-No new asset coming into existence-Allowable as revenue expenses.

MKJ Enterprises Ltd. v. Dy.CIT (2020) 83 ITR 224/ (2021 ) 187 ITD 678/ 212 TTJ 507 / 204 DTR 51 (Kol.)(Trib.)

S. 37(1) : Business expenditure-Expenditure incurred on celebration of Ireland-Not allowable as business expenditure-Unverifiable and personal element involved-Disallowance of 20 Per Cent. is up held.

Isgec Heavy Engineering Ltd. v. Dy.CIT (2020) 83 ITR 426 (Chd.)(Trib.)

S. 37(1) : Business expenditure-Club membership fees for employees and entertainment of customers-Allowable as business expenses.

IKEA Trading India Pvt. Ltd. v. Dy. CIT (2020) 83 ITR 415 / (2021) 186 ITD 473 / 210 TTJ 512 (Delhi)(Trib.)

S. 37(1) : Business expenditure Duty Drawback-Reimbursing Duty Drawback To Supporting Manufacturers Through Account Payee Cheques-No disallowance can be made. [S. 133(6)]

Maharaja Shree Umaid Mills Ltd. v. Dy.CIT (2020) 83 ITR 498 (Jaipur)(Trib.)

S. 32 : Depreciation-Windmill-Civil work and electric generator part of windmill-Rate as applicable for windmill i.e. 80%-Applicable To Civil Work And Electric Generator-Entitled to additional depreciation.