Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


Senior India P. Ltd. v. Dy.CIT (2021) 87 ITR 62 (SN) (Delhi)(Trib.)

S. 37(1) : Business expenditure-Provision for warranty claims-Estimate of provision on basis of past historical trend of warranty claims not reliable-Provision not allowable. [S. 145]

Dy. CIT v. Realistic Realitors Pvt. Ltd. (2021) 87 ITR 30 (SN) (Delhi) (Trib.)

S. 37(1) : Business expenditure-Payment to sub-broker-Statement of third party was not confronted-No disallowance can be made.

Add. CIT v. Bunge India Pvt. Ltd. (2021) 87 ITR 34 (SN) (Mum.)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Market research expenses-Allowable as revenue expenditure.

Citywood Builders Pvt. Ltd. v. Dy.CIT (2021) 87 ITR 83 (SN) (Mum.) (Trib.)

S. 37(1) : Business expenditure-Prior period interest-Omission to book expenditure to closing work-in-progress rectified during year-No disallowance warranted. [S. 145]

Bharat Financial Inclusion Ltd. v. Dy.CIT (2021) 87 ITR 80 (SN) (Hyd.)(Trib.)

S. 37(1) : Business expenditure-Employees’ Stock option plan-Loss on account of stock options-Allowable as deduction-Provision for gratuity-Allowable as deduction-Provision for approved gratuity fund-Allowable as deduction-Advance to employees welfare fund-Interest not disallowable. [S. 36(1)(iii), 40A(7), 43B]

Bajaj Parivahan P. Ltd. v. ITO (2021) 87 ITR 74 (SMC)(SN) (Kol.)(Trib.)

S. 37(1) : Business expenditure-Debit of claim charges-Self made vouchers-No disallowance can be made-Ad hoc disallowance of 10 per cent-Not sustainable [S. 145]

NLC India Ltd. v. Dy.CIT (2021) 87 ITR 121 (Chennai)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Expenses for insurance spare consumption-Revenue expenditure.

NLC India Ltd. v. Dy.CIT (2021) 87 ITR 121 (Chennai)(Trib.)

S. 32 : Depreciation-Uninterrupted power supply system-Part of computer-Entitled to depreciation at 60 Per Cent-Civil structure for water supply and drainage-Part of plant and machinery-Entitled to depreciation at 15 Per Cent.

Sai Mirra Innopharm P. Ltd. v. ITO (2021) 87 ITR 235 (Chennai) (Trib.)

S. 28(va) : Business income-Cash or kind-Compensation received for pre closure of contract manufacturing agreement-Capital receipt for loss of business or investment. [S. 4]

Dy. CIT(E) v. Mumbai Railway Vikas Nigam Ltd. (2021) 87 ITR 1 (Mum.)(Trib.)

S. 11 : Property held for charitable purposes-Registered under Companies Act, 1956-No profit motive-Collection of fees or cess-No requirement that the applicant must be trust-Denial of exemption is held to be not justified. [S. 2(15), 12AA(3) Companies Act, 1956, S. 25, 617]