Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Maharani of India v. ACIT (2022) 94 ITR 8(SN) (Delhi)(Trib.)

S. 37(1) : Business expenditure-Telephone expenses-Club membership fee-Allowable as business expenditure-Entertainment Expenses-Expenses incurred on cigarettes and wines not allowable.

Jaidka Woolen and Hosiery Mills P. Ltd. v. ITO (2022) 94 ITR 57 (SN) (Delhi)(Trib.)

S. 37(1) : Business expenditure-Fabrication charges-Books of account not rejected-Disallowance of fabrication charges is not justified. [S. 145]

Lumino Industries Ltd. v. ACIT (2022) 94 ITR 675 / 215 TTJ 62 / 213 DTR 290 (Kol.)(Trib.)

S. 37(1) : Business expenditure-Educational sponsorship of son of Director-Recipient of sponsorship undertaking to serve company after completion of studies and later joining service of assessee-Entitle to deduction.

Dy. CIT v. Balaji Hotels and Enterprises Ltd. (2022) 94 ITR 24 (Trib.) (Chennai)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Pre-operative interest expenses-Pending for allocation-Not debited in profit and loss account-Disallowance is not valid.

ITO v. Bhagchand Jain (2022) 94 ITR 472 / 217 TTJ 202 (Jaipur)(Trib.)

S. 37(1) : Business expenditure-Expenses incurred for the business cannot be disallowed by the AO on the question of commercial expediency.

ACIT v. Dong Woo Surface Tech India (P.) Ltd. (2022) 94 ITR 547 (Chennai)(Trib.)

S. 37(1) : Business expenditure-Supervisory fees-The AO cannot sit in the armchair of businessman and decide whether particular expenditure is required to be incurred for the business or not-Deduction is allowable in the year of payment of tax deduction at source. [S.40(a)(i)]

Gujarat Nippon Enterprises Pvt. Ltd. v. ITO (2022) 94 ITR 2 (SN) (Ahd.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Investments in acquisition of shares in companies to have controlling stake-Investment for purpose of business-No disallowance of interest expenses. [S. 14A]

ACIT v. Silver Jubilee Motors Ltd. (2022) 94 ITR 19 (Trib.) (SN) (Pune)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Capital work-in-progress-Interest required to be capitalised-Matter remanded.

Moonrock Hospitality (P.) Ltd. v. ACIT (2022) 94 ITR 185 (Delhi) (Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Interest free loans to wholly-owned subsidiary-Commercial expediency-Interest on borrowed capital allowable as deduction.

Sehgal Autoriders Pvt. Ltd. v. Dy.CIT (2022) 94 ITR 11 (SN) (Pune)(Trib.)

S. 32 : Depreciation-Ownership of asset-Car loan-Vehicle registered in name of director-Vehicle used in business-Entitle to depreciation and interest paid on car loan. [S. 37(1), Motor Vehicles Act, 1988]