Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


United Teleservices Ltd. v. ACIT (2021)86 ITR 36 (SN) (Kol.)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payees declaring payments in returns and paying tax thereon-AO was directed to verify and decide according to law.

ACIT v. Parag Fans and Cooling System Pvt. Ltd. (2021) 86 ITR 598 (Indore)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Settlement of loan provision of deduction at source is not applicable-Amount of sales written as bad debt which is reflected in profit and loss account-Allowable as deduction subject to verification. [S. 36(1)(vii)]

A. O. Smith India Water Products Pvt. Ltd. v. Dy. CIT (2021) 86 ITR 38 (SN) (Bang.)(Trib.)

S. 37(1) : Business expenditure-Provision for sales and advertisement expenses-Liability crystallising only in the following year-Disallowance is held to be proper-Advertisement expenses-Matter remanded-Provision for warranty-Allowable only if amount is claimed during year. [S. 145]

Deloitte Haskins And Sells v. ACIT (2021) 86 ITR 121 (Delhi)(Trib.)

S. 37(1) : Business expenditure-Firm of Chartered Accountants-Part Payment of subscription fees through Mumbai entity as reimbursement of its share to international group entity-Allowable as deduction-Legal and professional fees-Criminal complaint filed against partner in matter related to business of firm-Allowable as business expenditure. [S. 195]

ACIT v. Claridges Hotels Pvt. Ltd. (2021) 86 ITR 402 (Delhi)(Trib.)

S. 37(1) : Business expenditure-Payee relative of promoter-AO can not decide the reasonable and commercial expenditure-Payment to consultant-Failure to procure business-No disallowance can be made-DTAA-India-UAE. [S. 40(a)(i), Art.14(7), 22(1)]

ACIT v. Ariba Foods Pvt. Ltd. (2021) 86 ITR 174 (Indore)(Trib.) ACIT v. Vyanktesh Plastics and Packaging Pvt. Ltd (2021) 86 ITR 174 (Indore)(Trib.) ACIT v. Famous Vanijya Pvt. Ltd. (2021) 86 ITR 174 (Indore)(Trib.)

S. 37(1) : Business expenditure-Power and fuel expenses-No defects in the books of account-Ad hoc disallowance is held to be not justified-Employees’ contribution to provident fund and employees’ state insurance corporation-Delay in depositing-Deduction allowable. [S. 36(1)(va)]

Bengal Shriram Hitech City Pvt. Ltd. v. ACIT (2021) 86 ITR 719 (Bang.)(Trib.)

S. 37(1) : Business expenditure-Real estate business-Land acquired for development-Expenditure allowable as the business commenced no business income is declared-Expenses for development of residential or commercial project to be considered as work-in-progress.

United Teleservices Ltd. v. ACIT (2021) 86 ITR 36 (SN) (Kol.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Loan for purchase of Office-Interest not allowable for period till asset put to use.

Maxim India Integrated Circuit Design Pvt. Ltd. v. Dy.CIT (2021) 187 ITD 547 / 86 ITR 26 // 212 TTJ 986/ 204 DTR 332 (Bang.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-External commercial borrowing loan-Expansion of existing business-Disallowance cannot be made.

Dy. CIT v. STP LTD. (2021) 187 ITD 538 / 86 ITR 14 (SN) (Kol.)(Trib.)

S. 35 : Scientific research-Research and development facility should be approved by Prescribed Authority-Failure by prescribed authority to send intimation in Form 3CL-Weighted deduction cannot be denied. [S. 35(2AB), ITR 6]