Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


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.

PCIT v. Ajit Ramakant Phatarpekar (2020) 429 ITR 319 / 196 DTR 296 / (2021 ) 272 Taxman 543 (Bom.)(HC) PCIT v. Neelam Ajit Phatarpekar (2020) 429 ITR 319 / 196 DTR 296 / ( 2021 ) 227 Taxman 543 (Bom.)(HC)

S. 37(1) : Business expenditure-Staking and handling expenses and blending and screening charges-Sister concern-Deletion of addition is justified.

CIT (LTU) v. ABB Ltd. (2020)429 ITR 355 (Karn.)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Expenses incurred for upgradation of computers and to acquire software-Held to be revenue expenditure.

CIT(LTU) v. Vijaya Bank (2020) 429 ITR 407 / 277 Taxman 148(Karn.)(HC)

S. 36(1)(viii) : Eligible business-Special reserve-Financial Corporation-Entitled to deduction. [Companies Act, 1956. S. 3, 617]

CIT v. Gokaldas Images Pvt. Ltd. (2020) 429 ITR 526 / (2021) 197 DTR 225 / 318 CTR 486 / 276 Taxman 420 (Karn.)(HC)

S. 36(1)(iii) : Interest on borrowed capital-Amount advanced to sister concern without charging interest-Business purpose-Held to be allowable.

CIT v. Brigade Enterprises Ltd. (No. 2) (2020) 429 ITR 615 / (2021) 318 CTR 325 / 197 DTR 319/ 278 Taxman 81 (Karn.)(HC)

S. 36(1)(iii) : Interest on borrowed capital Sufficient surpluses and reserves-No disallowance of interest can be made.