Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Magadh Stock Exchange Association v. CIT (2020) 429 ITR 75 / 195 DTR 22 / 317 CTR 434 / 275 Taxman 45 (Pat.)(HC)

S. 43B : Deductions on actual payment-Mercantile system of Accounting-Securities Transaction Tax-Amount not deposited with authorities or returned to person from whom deducted-Disallowance of the amount -Neither perverse nor illegal. [Art. 226]

PCIT v. Ajit Ramakant Phatarpekar (2020) 429 ITR 319 / 196 DTR 296 /( 2021 ) 277 Taxman 543 (Bom.)(HC) PCIT v. Neelam Ajit Phatarpekar (2020) 429 ITR 319 / 196 DTR 296/ (2021 ) 277 Taxman 543 (Bom.)(HC)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Confirmation was filed-Deletion of addition is held to be justified.

PCIT v. Ajit Ramakant Phatarpekar (2020) 429 ITR 319 / 196 DTR 296 /( 2021 ) 277 Taxman 543 (Bom.)(HC) PCIT v. Neelam Ajit Phatarpekar (2020) 429 ITR 319 / 196 DTR 296/ ( 2021 ) 277 Taxman 543 (Bom.)(HC)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Books of account not rejected- Transactions involving less than Rs.20,000 – H Forms obtained-Deletion of addition is held to be justified. [S. 37(1)]

Tamil Nadu State Marketing Corporation Ltd. v. UOI (2020) 429 ITR 327 / 196 DTR 289 / 317 CTR 961 / (2021) 276 Taxman 378 (SC)

S. 40(a)(iib) : Amounts not deductible-Validity of provision-Exclusive Jurisdiction of High Court to consider-Cause of action for challenge to vires of provision arose on issue of show-cause notice-High Court is directed to dispose of writ petition on merits. [Art. 14, 226]

India Furniture Products Ltd. v. CIT (2020) 429 ITR 432 / 196 DTR 345 / (2021) 318 CTR 57 / 276 Taxman 427 (Bom.)(HC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Non-resident-Interest-Usance charges paid on letters of credit issued by Indian Banks for import of raw materials-Income of non-Resident- Liable to deduct tax at source. [2(28A), 5(2), 9(1)(v)(b), 195(1)]

Shetron Ltd. v. Dy CIT (2020) 429 ITR 340 / 276 Taxman 444/ ( 2021)) 201 DTR 260/ 320 CTR 761 (Karn.)(HC)

S. 37(1) : Business expenditure-Discount on Debentures-Principle of matching concept not applicable-Amount relating to relevant accounting year alone deductible as revenue expenditure. [S. 145]

CIT v. Sociedade De Fomento Industrial Pvt. Ltd. (No. 2) (2020) 429 ITR 358 / (2021) 277 Taxman 6 / 207 DTR 381/ ( 2022) 324 CTR 524 (Bom.)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Contribution towards reconstruction of Bridge to enable transportation of assessee’s products to port-Allowable as revenue expenditure.

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.