Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Sushil Bansal v. PCIT (2020) 426 ITR 535 (Delhi)(HC)

S. 69C : Unexplained expenditure – Capitation fee paid to medical college for admission of assessee’s son — Source not explained satisfactorily- Addition is held to be justified .

PCIT v. Hassan Ali Khan (2020) 426 ITR 556 (Bom)(HC)

S. 69C : Unexplained expenditure -Presumption as to documents seized from third party of drafts on Foreign Bank in name of company — Documents not seized from possession of assessee —Amount of draft cannot be treated as unexplained expenditure. [ S. 132, 292C ]

Kumar Nirman and Nivesh Pvt. Ltd. v. ACIT (2020)425 ITR 486 (Karn)(HC )

S.68: Cash credits —Must prove identity of creditor, Creditworthiness and genuineness of transaction — Source of source need not be proved — Duty of Income-Tax Authorities to conduct enquiry —No Enquiry by Income-Tax Authorities — Addition not justified .

Kemfin Services Pvt. Ltd. v .ACIT (2020)425 ITR 684/ 315 CTR 336/ 272 Taxman 372/191 DTR 225 (Karn)(HC)

S.45:Capital gains- Business income — Non-Banking financial Institution — Conversion of shares and securities held as stock-in-trade into investment — Sale of shares — Income cannot be assessed as business income [ S. 4, 28(i)]

PCIT v. Mangalore Refinery and Petrochemicals Ltd. (2020)426 ITR 266/ 272 Taxman 441/191 DTR 47 / 316 CTR 842(Bom)(HC)

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -State Government scheme for deferment of sales tax and Treating amount as loan for specified period — Surplus on account of prepayment of loan —Amount not assessable as income [ S.4, 28(i) ]

PCIT v. Gujarat State Financial Corporation (2020) 426 ITR 47 / ( 2021 ) 277 Taxman 99 (Guj)(HC).Editorial : SLP of revenue dismissed , PCIT v. Gujarat State Financial Corporation ( 2021 ) 280 Taxman 234 / 126 Taxmann.com 154 (SC)

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Waiver of loan — Neither the component of interest embedded therein nor the amount claimed as deduction earlier —Not assessable as business income

A. Y. Garments International Private Ltd. v. Dy. CIT (2020) 426 ITR 495 /273 taxman 162 (Karn)(HC)

S. 40(a)(ia): Amounts not deductible – Deduction at source –
Failure to pay tax deducted at source- Amendment by Finance Act, 2010 allowing deduction of payment where tax deducted in subsequent year, or during previous year but paid after due date for filing return — Amendment retrospective- Disallowance is held to be not valid [ S.139(1) ]

Kerala Kaumudi Pvt. Ltd. v. CIT (2020) 425 ITR 202 (Ker)(HC)

S.37(1): Business expenditure — Expenditure on higher education of managing director of subsidiary company — Person becoming director after completion of higher Education —Not deductible.

CIT v . GMR Industries Ltd. (2020) 425 ITR 504/ 194 DTR 52 (Karn) (HC)

S.37(1):Business expenditure — Capital or revenue – Interest paid for delay in allotment of shares for increasing share capital — Not allowable as revenue expenditure .

CIT v . GMR Industries Ltd. (2020) 425 ITR 504 /194 DTR 52(Karn) (HC)

S.37(1):Business expenditure — Capital or revenue – Interest paid for delay in allotment of shares for increasing share capital — Not allowable as revenue expenditure .