Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Avantha Realty Ltd v. ACIT (2022) 287 Taxman 315/212 DTR 399/ 326 CTR 247 (Delhi)(HC)

S. 45 : Capital gains-Sale of property below circle rate-AO has the jurisdiction to examine the transaction to compute true capital gains. [S. 50C, R. 11UA, Art. 226]

Indian Metal and Ferro Alloys Ltd. v. CIT (2022) 287 Taxman 320/ 212 DTR 177/326 CTR 161 (Orissa)(HC)Editorial: SLP of assessee dismissed , Indian Metals and Ferro Alloys Ltd. v. CIT (2022) 289 Taxman 146 (SC)

S. 43B : Deductions on actual payment-Electricity-Interim order to deposit electric duty-Money deposited in escrow account-Did not satisfy requirement of amount having been actually paid-Disallowance is held to be justified. [S. 43B(1)]

PCIT v. BMO Advisors (P) Ltd. (2022) 287 Taxman 431 / CCH 5 /( 2023)451 ITR 389(Delhi)(HC)

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Remuneration to director-Bonus to directors-Rule of consistency-Deletion of addition is held to be justified. [S. 36(1)(ii), 40A(2)(b), Payment of Bonus Act, 1965]

Indian Metal and Ferro Alloys Ltd. v. CIT (2022) 287 Taxman 320/212 DTR 177/326 CTR 161 (Orissa)(HC).Editorial: SLP of assessee dismissed , Indian Metals and Ferro Alloys Ltd. v. CIT (2022) 289 Taxman 146 (SC)

S. 37(1) : Business expenditure-Foreign travel expenditure-Directors-Failure to file any details-Justified in in disallowing 20 per cent of expenditure.

CIT v. Lakshmi Vilas Bank Ltd. (2022) 287 Taxman 333/ 113 CCH 336 (Mad.)(HC)

S. 37(1) : Business expenditure-Stock in trade-Interest paid towards broken period on such securities allowable as revenue expenditure.

Peerless Hospitex Hospital and Research Centre Ltd. v. PCIT (2022) 447 ITR 60/213 DTR 81/326 CTR 249 /287 Taxman 711 (Cal.) (HC)

S. 37(1) : Business expenditure-Referral fees to Doctors-Prohibited by law-Not allowable as revenue expenditure. [Medical Council (Professional Conducts, Etiquettes and Ethics) Regulation Act, 2002 Regulations, 6.4, 6.8 and 8.1].

PCIT v. Power Links Transmission Ltd. (2022) 287 Taxman 327/114 CCH 16 (Delhi)(HC)

S. 36(1)(iii) : Interest on borrowed capital-liquidation damages/pre-payment charges-Own interest free funds-Expenditure incurred towards payment of interest on borrowed funds was to be allowed as deduction.

Maharashtra Apex Corpn. Ltd. v. Dy.CIT (2022) 287 Taxman 310 /113 CCH 337 (Karn.)(HC)

S. 32 : Depreciation-Lease of assets-Financial transactions-Failure to provide lease agreements-Matter remanded [S. 143(3), 254(1)].

CIT v. Lakshmi Vilas Bank Ltd. (2022) 287 Taxman 333/113 CCH 336 (Mad.)(HC)

S. 32 : Depreciation-Stock in trade-Fall in value of securities-Depreciation allowable.

S. Srinivasaraghavan v. ACIT (2022) 287 Taxman 398/114 CCH 312 (Mad.)(HC)

S. 32 : Depreciation-Windmill-Generation of electricity-Entitle to additional depreciation [S. 32(1)(iia)].