Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


N. Rajarajan v. ACIT (2020) 275 Taxman 196 (Mad.)(HC)

S. 48 : Capital gains-Cost of acquisition-Encumbrance-Property received under settlement deed-Land mortgaged to bank-Proportionate OTS amount paid to clear encumbrances allowable as deduction. [S. 45, 49, 55]

PCIT v. Gujrat Fluorochemicals Ltd. (2020) 275 Taxman 366 (Guj) (HC)

S. 45 : Capital gains-Investment in shares-High turnover of shares-Assessable as capital gains and not as business income. [S. 28(i)]

PCIT v. Precot Meridian Ltd. (2020) 275 Taxman 398 (Mad.)(HC)

S. 28(i) : Business loss-Foreign exchange derivative loss cannot be disallowed holding it to be a speculative loss-Remand to the Assessing Officer is held to be valid. [S. 43(5)]

ACE Designers (P) Ltd. v. ACIT (2020) 275 Taxman 138( 2021 )198 DTR 118 (Karn.)(HC)

S. 28(i) : Business loss-Investment in subsidiary-Wound up of subsidiary-Loss is allowable. [S. 37(1)]

PCIT v. Gujrat Fluorochemicals Ltd. (2020) 275 Taxman 366 (Guj.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds more than investment-No disallowance can be made. [R. 8D]

Polaris Consulting and Services Ltd. v. PCIT (2020) 275 Taxman 121 (Mad.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Failure to prove that no expenditure was incurred-Disallowance of expenditure is held to be justified. [R. 8D]

Marg Ltd. v. CIT (2020) 275 Taxman 502 (Mad.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction is mandatory-Disallowance cannot exceed exempt income. [R. 8D]

Avani Village Welfare Society v. ITO (2020) 275 Taxman 618 (Mad.)(HC)

S. 11 : Property held for charitable purposes-Salary paid to secretary-50% of salary was allowed as reasonable-No substantial question of law. [S.260A]

Polaris Consulting and Services Ltd. v. PCIT (2020) 275 Taxman 121 (Mad.)(HC)

S. 10AA : Special economic zones-Export turnover-Expenditure incurred in foreign exchange is to be excluded from ‘Export Turnover’ for purpose of computing deduction.

CIT v. L & T Valdel Engineering P. Ltd. (2020) 275 Taxman 115 /(2021) 199 DTR 28 (Karn) (HC)

S. 10A : Free trade zone-Split of existing business-Site development of software at client premises-New unit-Entitle to exemption.