Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Jaipur Boutique Carpet v. ITO (2021) 189 ITD 305 (Jaipur)(Trib.)

S. 37(1) : Business expenditure-Commission-AO failed to considered the letter submitted by recipient wherein confirmed that entire commission paid was for relevant assessment year, matter needs remanded for consideration. [S.254(1)]

Muneer Enterprises v. ACIT (2021) 189 ITD 7/ 213 TTJ 361/ 205 DTR 241 (Bang.)(Trib.)

S. 37(1) : Business expenditure-Penal in nature-Contributed 15 per cent of sale proceeds to SPV account, these payment did not fall under category of penalty-Allowable as deduction. [Explanation 1 to section 37 (1)]

Golf view Homes Ltd. v. ACIT (2021) 212 TTJ 472 / 88 ITR 423 / 207 DTR 199(Bang.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Acquisition of capital asset is not an extension of existing business-Advance less than available free funds-Interest cannot be disallowed. [S. 37(1)]

Archana Traders Pvt. Ltd. v. ITO (2021) 189 ITD 626 / 214 TTJ 231 / 206 DTR 393 (Bang.)(Trib.)

S. 28(iv) : Business income-Value of any benefit or perquisites-Forfeiture of advance money-Benefit or perquisite arising from the business shall not be in monetary form-Not taxable-Amount would go to reduce the cost of property. [S. 51]

Pricewaterhouse Coopers (P.) Ltd. v. ACIT (2021) 189 ITD 329 (Kol.)(Trib.)

S. 28 (iv) : Business income-Grant received for specific purpose i.e., for procuring a capital asset, this receipt being in cash could not have been taxed u/s. 28(iv) [S.4]

Kumar Properties and Real Estate (P.) Ltd. v. DCIT (2021) 190 ITD 212 / 87 ITR 169 (SN)/ 212 TTJ 227/ 202 DTR 425 (Pune)(Trib.)

S. 23 : Income from house property-Annual value-Unsold flat as stock in trade-buildings or land appurtenant thereto-Occupied by owners for the purpose of business-Excluded for the purpose of computing notional rent. [S. 22]

Pricewaterhouse Coopers (P.) Ltd. v. ACIT (2021) 189 ITD 329 (Kol.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance is restricted to extent of exempt income. [R.8D]

Navajbai Ratan Tata Trust v. PCIT (2021) 189 ITD 535 / 88 ITR 170 / 210 TTJ 921 / 200 DTR 9 (Mum.)(Trib.)

S. 12A : Charitable or religious trust-Registration-Cancellation of registration-Assessee unwilling to avail benefit of registration obtained u/s. 12A cannot be bound to, by action of or by inaction of revenue authorities, continue with said registration-Benefit could not be forced upon the assesseee. [S. 12A(3), 13(1)(d)]

Acharya Jiyalal Vasant Sangeet Niketan v. ITO(E) (2021) 189 ITD 1 / 211 TTJ 655 / 200 DTR 289 (SMC) (Mum.)(Trib.)

S. 11 : Property held for charitable purposes-Rental income derived from letting out studio to artists for teaching Indian classical music comes within the ambit of “education”-Assessee is entitled to exemption. [S. 2(15), 11(4A)]

Ansys Inc. v. ACIT (IT) (2021) 189 ITD 671 (Pune)(Trib.)

S. 9(1)(vi) : Income deemed to accrue or arise in India-Royalty-Income from sale of software license-Not assessable as royalty-DTAA-DTAA-India-USA. [Art. 5, 7, 12]