Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Surat District Co-op. Milk Producer’s Union Ltd. v. DCIT (2021) 191 ITD 612 (Surat)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Rent paid-chartered accountant certifying that recipient of impugned receipt had included said receipt in their gross income and had paid tax thereon-Disallowance is held to be not valid. [S. 194I]

InterGlobe Aviation Ltd. (IndiGo) v. ACIT (2021) 191 ITD 1 (/(2022)) 195 ITR 586/ 216 TTJ 265/ 211 DTR 233SB) (Delhi)(Trib.)

S. 40(a)(i) : Amounts not deductible-Deduction at source-Aircrafts-Supplementary rent in respect of cross border lease agreements-Exempt from tax-No disallowance can be made for failure to deduct tax at source-Shipping, inland waterways transport and air-transport-In respect of agreement executed after 1-4-2007 as per articles 12 and 8 of DTAA between India and Ireland, profits derived by an enterprise of contracting State from rental of aircrafts were taxable only in State of residence of lessor-DTAA-India-Ireland. [S. 9(1)(i), 10(15A), 195, Art. 8, 12]

Bengal Shriram Hitech City (P.) Ltd. v. ACIT (2021) 191 ITD 466 / 86 ITR 719 (Bang.)(Trib.)

S. 37(1) : Business expenditure-Business of real estate developer-Setting up of business-Acquired land in the year 2007-No business income-Expenses allowable as deduction-Interest earned from bank deposits-Assessable as income from other sources and not as business income. [S. 28(i), 56]

ACIT v. India Power Corporation Ltd. (2021) 191 ITD 250 (Kol.)(Trib.)

S. 37(1) : Business expenditure-Funds borrowed for setting up a thermal plant-Interest expenses till date of commissioning of power production i.e., prior to use of assets, was to be capitalized to cost of asset-Interest expenses incurred after commencement of power production-Allowable as revenue expenditure. [S.43 (1)].

ITO v. Blue Coast Infrastructure Development Ltd. (2021) 191 ITD 643 / 90 ITR 294 / 213 TTJ 28 (UO) (Chd.)(Trib.)

S. 37(1) : Business expenditure-Expansion of existing business-Capital or revenue-New project of starting a hotel chain-Allowable as revenue expenditure.

ACIT v. Farah Khan (Ms.) (2021) 191 ITD 633 (Mum.)(Trib.)

S. 37(1) : Business expenditure-Professional choreographer-Office-cum residence-Electricity-Service charges-Compensation and electricity paid to society in respect of portion of residence used as office-Allowable as business expenditure.

InterGlobe Aviation Ltd. (IndiGo) v. ACIT (2021) 191 ITD 1 /(2022) 195 ITR 586/ 216 TTJ 265/ 211 DTR 233(SB) (Delhi)(Trib.)

S. 37(1) : Business expenditure-Rents-Proportionate disallowance of lease rentals-Held to be not valid-Supplementary Rent (SR) paid to lessors-Not reimbursement-Allowable as deduction.

Maksat Technologies (P.) Ltd. v. DCIT (2021) 191 ITD 175 (Delhi) (Trib.)

S. 36(1)(va) : Any sum received from employees-Provident fund Employee’s contribution-Deposited before due date of filing of return-No disallowance can be made-Adjustment proposed by centralized processing centre was not sustainable. [S. 139(1), 143(1)]

Tata Securities Limited v. DCIT (2021) 191 ITD 1 (Mum.)(Trib.)

S. 36(I)(v) : Contribution approved gratuity fund-Approval of Commissioner-Non-approval of scheme after more than 14 years-Contribution made cannot be disallowed. [S. 40(a)(ia)]

Mason Infrastructure (P.) Ltd. v. DCIT (2021) 191 ITD 29 (Delhi)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Business of real estate-Borrowed money for the purpose of business-Lent idle money to third parties at same rate of interest-Interest expenses allowable as deduction-Alternative interest expenses allowable as deduction u/s. 57(iii) of the Act. [S. 37(1), 57(iii)]