Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


CIT v. Bhageeratha Engineering Ltd. (No. 1) (2021) 439 ITR 704 283 Taxman 110 (Ker.)(HC)

S. 28(i) : Business loss-Recording notional loss or profit-Method of accounting-Current assets-Loss on revaluation and sale of bonds-Consistent method-Allowable as business loss. [S. 37(1), 145]

PTL Enterprises Ltd. v. Dy. CIT (2021) 439 ITR 365/( 2022) 212 DTR 404 / 326 CTR 282 (Ker.)(HC).Editorial : Affirmed in PTL Enterprises Ltd. v. Dy. CIT( 2022) 443 ITR 260 (SC)

S. 28(i) : Business income-Income from lease-Exploitation of property and not exploitation of business assets-Assessable as income from other sources-Quality loss-No business carried on-Not allowable as deduction. [S. 2(14), 56]

CIT v. Premier Tyres Ltd. (2021) 439 ITR 346 / ( 2022) 285 Taxman 596 /212 DTR 404/ 326 CTR 282 (Ker.)(HC) CIT v. PTL Enterprises Ltd. (2021) 439 ITR 346 /( 2022) 212 DTR 404 / 326 CTR 282(Ker.)(HC)

S. 28(i) : Business income-lease rent-Scheme sanctioned by BIFR-Assessable as business income. [S. 14]

CIT v. ABB Ltd. (2021)439 ITR 554/(2022) 284 Taxman 350 (Karn.)(HC)

S. 28(i) : Business income-Sale of technical know how-Cost was claimed as revenue expenditure-Receipt assessable as business income. [S. 56]

PCIT v. V. N. Enterprises Limited (2021) 439 ITR 624 / (2022) 284 Taxman 612 / 211 DTR 25/ 325 CTR 180 / 284 Taxman 612 (Cal.)(HC) CIT v. Tea Promoters (India) Pvt. Ltd. (2021) 439 ITR 624 / 211 DTR 25/ 325 CTR 180/ 284 Taxman 612 (Cal.)(HC)

S. 10B : Export oriented undertakings-Manufacture-Blending of Tea does not constitute manufacture-Not entitled to exemption-Interpretation of taxing statute-Provision for exemption-In case of ambiguity in an exemption provision the benefit has to go to the revenue.

CIT v. Wescare (India) Ltd. (2021) 439 ITR 657 (Mad.)(HC)

S. 4 : Charge of income-tax-Capital or revenue-Sale of emission reduction credit-Capital receipt. [S. 28(i)]

CIT v. ABB Ltd. (2021)439 ITR 554 /(2022) 284 Taxman 350 (Karn.)(HC)

S. 4 : Charge of income-tax-Capital or revenue-Non-compete fee-Sharing customer database and sharing of trained employees-Fee received is not taxable. [S. 28(i)]

Maheshbhai Shantilal Patel v .PCIT (2021)439 ITR 112/ (2022) 284 Taxman 694/ 210 DTR 8/ 325 CTR 75 (Guj) (HC)

Direct Tax Vivad Se Vishwas Act, 2020

S.2(1)(a): Appellant – Pendency of appeal – Condonation of delay – Appeal Of Declarant Should Be Pending —Order condoning delay passed on 23-2-2021 — Appeal of declaration deemed to be pending on specified date 31-1-2020 — Declaration Valid – Directed the Designated Authority to accept the declaration . [ S. 2(n)- Taxation and other Laws (Relaxation of certain Provisions)

Apex Laboratories Pvt. Ltd. v. DCIT (2022)442 ITR 1 / 286 Taxman 200 / 211 DTR 73/ 325 CTR 121 (SC) .www.itatonline .org Editorial : Finance Act , 2022 amended the section 37 (1) provision with effect from 1-4 -2022 clarifying that the expression “ expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law .

S. 37(1): Business expenditure – Explanation 1 – Freebies given to doctors – Prohibited by law – Disallowed as expense – Interpretation -Taxing statutes to be interpreted strictly.-Strict interpretation should not result in absurdity contrary to intention of Parliament [Medical Council Act, 1956, S. 20A , Medical Council (professional Conduct, Etiquette and Ethics) Regulations, 2002, R. 6.8 , Contract Act , 1872 , S. 23 , General Clauses Act , 1897, S.2(38) , Indian Penal Code ,1860, S. 40, 43 ]

JM Financial Foundation v. CIT (Mum) ( Trib ) www.itatonline .org

S. 263: Commissioner – Revision of orders prejudicial to revenue – CSR funds received – Specific projects – Not income of the trust – sustainable view taken by the Ld. AO – Order of revision set aside. [S. 2(24), 11 ]