Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


DCIT v. DML Exim (P.) Ltd. (2020) 184 ITD 432 (Rajkot)(Trib.)

S. 28(i) : Business loss-Forfeiture of advance-Allowable as business loss having direct nexus with operation of business and is incidental to business. [S. 36(1)(vii), 36(2)]

Futura Polyster Ltd. v. ITO (2020) 184 ITD 158 /( 2021) 213 TTJ 625 (Mum.)(Trib.)

S. 28(i) : Business loss-Foreign exchange fluctuation loss-Matter remanded-Bad debt-Advances written off was not allowable as bad debt, same would not ipso facto jeopardize assessee’s claim for deduction of same as business loss-Matter remanded. [S.36(1)(vii), 36(2), 37(1)]

Chowdry Associates v. ACIT (2020) 184 ITD 222 (Delhi)(Trib.)

S. 28(i) : Business loss-Commodity derivatives-Suspension of operations by NSEL-Amounts due from brokers-Allowable as business loss. [S. 43(5)(e)]

Zaveri & Co. (P.) Ltd. v. DCIT (2020) 184 ITD 777 (Ahd.)(Trib.)

S. 28(i) : Business income-Interest income from fixed deposit (FD) receipts with bank-Obtaining letter of credit for its purchases-Assessable as business income. [S. 10AA]

Anant Raj Ltd. v. ACIT (2020) 184 ITD 820/191 DTR 32/206 TTJ 1 (Delhi)(Trib.)

S. 28(i) : Business income-Capital gains-Bad debt-There is no embargo either on Assessing Officer or on assessee to show income or loss under head business or profession in subsequent year merely because it was shown in earlier assessment year-Income has to be assessed under correct head-Allowability of bad debt or business loss has to be determined in the year in which it is to be allowed-Bad debt is allowable in the year it is written off in the books of account. [S. 36(1)(viii), 36(2), 45, 143(3)]

Medley Pharmaceuticals Ltd. v. DCIT (2020) 184 ITD 8/207 TTJ 143 (Mum.)(Trib.)

S. 28(i) : Business income-Excess wastage of raw material-Cannot be assessed as suppressed/unaccounted production.

ITO v. Yashovardhan Tyagi. (2020) 184 ITD 461 (Delhi)(Trib.)

S. 23 : Income from house property-Annual value-Unrealised rent-Failure to produce evidence-Unrealized rent not allowable as deduction. [S. 24, R.4]

BBR Projects (P.) Ltd. v. ITO (2020) 184 ITD 842 (Hyd.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Surrender of right to claim exemption-Matter remanded. [S. 10(34)]

Zaveri & Co. (P.) Ltd. v. DCIT (2020) 184 ITD 777 (Ahd.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds available was far more than investment-No interest expenditure can be disallowed. [R. 8D]

Anant Raj Ltd. v. ACIT (2020) 184 ITD 820 (Delhi)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Average value of investment which has yielded income during year shall only be considered for purpose of disallowance. [R. 8D]