Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


CIT v. M. P. Electricity Board (2020) 429 ITR 349/(2021) 277 Taxman 483 (MP)(HC)

S. 37(1) : Business expenditure-Contribution made under specific directions of Government of India to other projects-Contributions to Provident Fund – Held to be allowable as deduction. [S. 36(1)(va), Electricity (Supply) Act, 1948, S. 24]

CIT v. Hanon Automative Systems India Private Ltd. (2020) 429 ITR 244/(2021) 277 Taxman 454 / 201 DTR 421(Mad.)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Payment made to an entity under an agreement for additional infrastructure for augmenting continuous supply of electricity-No asset acquired-Held to be allowable as revenue expenditure.

CIT v. Gokaldas Images Pvt. Ltd. (2020) 429 ITR 526 / (2021) 197 DTR 225 / 318 CTR 486 / 276 Taxman 420 (Karn.)(HC)

S. 37(1) : Business expenditure-Legal and professional fees-Non export oriented units-Held to be allowable.

PCIT v. Ajit Ramakant Phatarpekar (2020) 429 ITR 319 / 196 DTR 296 / (2021 ) 272 Taxman 543 (Bom.)(HC) PCIT v. Neelam Ajit Phatarpekar (2020) 429 ITR 319 / 196 DTR 296 / ( 2021 ) 227 Taxman 543 (Bom.)(HC)

S. 37(1) : Business expenditure-Staking and handling expenses and blending and screening charges-Sister concern-Deletion of addition is justified.

CIT (LTU) v. ABB Ltd. (2020)429 ITR 355 (Karn.)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Expenses incurred for upgradation of computers and to acquire software-Held to be revenue expenditure.

CIT(LTU) v. Vijaya Bank (2020) 429 ITR 407 / 277 Taxman 148(Karn.)(HC)

S. 36(1)(viii) : Eligible business-Special reserve-Financial Corporation-Entitled to deduction. [Companies Act, 1956. S. 3, 617]

CIT v. Gokaldas Images Pvt. Ltd. (2020) 429 ITR 526 / (2021) 197 DTR 225 / 318 CTR 486 / 276 Taxman 420 (Karn.)(HC)

S. 36(1)(iii) : Interest on borrowed capital-Amount advanced to sister concern without charging interest-Business purpose-Held to be allowable.

CIT v. Brigade Enterprises Ltd. (No. 2) (2020) 429 ITR 615 / (2021) 318 CTR 325 / 197 DTR 319/ 278 Taxman 81 (Karn.)(HC)

S. 36(1)(iii) : Interest on borrowed capital Sufficient surpluses and reserves-No disallowance of interest can be made.

PCIT v. V. Hotels Ltd. (2020) 429 ITR 54 / 275 Taxman 106 / 317 CTR 377 / 194 DTR 369(Bom.)(HC)

S. 32 : Depreciation-Hotel-Additional floor space index granted-One instalment paid and entire amount debited in accounts-Entitled to depreciation on entire amount at rate applicable to buildings. [S. 32(1)(ii), 43(6)(c)]

CIT v. Sociedade De Fomento Industrial Pvt. Ltd. (No. 1) (2020) 429 ITR 207 / 276 Taxman 90 / 196 DTR 377 / (2021) 318 CTR 38 (Bom.)(HC) Editorial : Notice issued in SLP filed against order of High Court , CIT v. Sociedade De Fomento Industrial Pvt. Ltd ( 2021 ) 281 Taxman 297/ 283 Taxman 1 / 283 Taxman 6( SC), SLP dismissed ,CIT v. Sociedade De Fomento Industrial Pvt. Ltd. (2022)443 ITR 34 / 211 DTR 305/ 325 CTR 507 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Tribunal justified in deleting the addition made by the Assessing Office. [s. 10(38), R. 8D]