Category: Income-Tax Act

Archive for the ‘Income-Tax Act’ Category


PCIT v. Sumukha Synthetics (2020) 275 Taxman 418 / 195 DTR 445 (Mad.)(HC)

S. 40A(3) : Expenses or payments not deductible – Cash payments exceeding prescribed limits – Bank account was attached – Disallowance of 20% is held to be not justified [ R.6DD(j)]

Kerala State Beverages (Manufacturing and Marketing) Corporation Ltd. v. ACIT (2020) 274 Taxman 12 / 191 DTR 267 / 316 CTR 180 (Ker.)(HC

S.40(a)(iib):Amounts not deductible- Royalty, licence, fee, etc. (Gallonage fee, licence fee and shop rental (kist)) -Disallowable – licence granted to assessee for retail trade could not be sustained – Surcharge on sales tax- Surcharge on sales tax or turnover tax paid by assessee-company was not a ‘fee or charge’ coming within sweep of section 40(a)(iib), thus, same could not be disallowed . [ S.37 (1) ]

CIT v. Sri Parameswari Spinning Mills (P.) Ltd. (2020) 196 DTR 206 (Mad.)(HC)

S. 40(a)(ia): Amounts not deductible – Deduction at source – Payment to contractor – Belated filing of form No 26Q- No disallowance could be made for failure to deduct tax at source [ S.194C (c)]

CIT v. NCR Corporation (P.) Ltd. (2020) 274 Taxman 139 / 193 DTR 66 (Karn)(HC)

S. 37(1) : Business expenditure –Capital or revenue – Expenditure of lease premises – Allowable as revenue expenditure .

Hawkins Cookers Ltd. v. UOI (2020) 273 Taxman 507 / 196 DTR 29 / 317 CTR 843 (Delhi)(HC)

S.35: Scientific research – Directed the petitioner to make representation before the competent authority and the Competent was directed to consider the said application with in four weeks of receipt of the application [ Art .226 ]

CIT v. NCR Corporation (P.) Ltd. (2020) 274 Taxman 139 / 193 DTR 66 (Karn)(HC)

S. 32 : Depreciation – ATM can be regarded as computer – Eligible depreciation at rate of 60 % .

Padmini Products (P.) Ltd. v. Dy. CIT (2020) 195 DTR 1 / 317 CTR 369 / (2021) 277 Taxman 22 (Karn.)(HC) .Editorial : Notice issued in SLP filed by the revenue ,Dy. CIT v. Padmini Products (P) Ltd. (2021) 283 Taxman 177 (SC)

S : 32: Depreciation – Intangible asset – Firm succeeded by Company – Revaluation of assets – Assessee is entitle to depreciation on actual cost incurred by it – 5th proviso will apply only in the year of succession and not in subsequent years and also in respect of over all quantum of depreciation in the year of succession – Order of Appellate Tribunal was quashed [ S.32 (1)(ii), 47(xiii) ]

Harmohinder Kaur. (Smt.) v. DCIT ( 2020) 204 TTJ 1 (UO) / (2021) 187 ITD 289 (Amritsar) (Trib.)

S. 69A : Unexplained money – Search and seizure – Noting in diary of third party – Seized in the course of search – Without any corroborative evidence and had no authenticity, no additions could be made .[ S. 132 (4A) , 292C ]

Mahendra B.Mittal ( HUF) v .Dy CIT ( 2020) 203 TTJ 288 ( Mum) ( Trib) Mahendra Balakrishna Mittal v Dy CIT ( 2020) 203 TTJ 288 ( Mum) ( Trib) Pooja Mahendra Mittal ( Smt ) v. Dy CIT ( 2020) 203 TTJ 288 ( Mum) ( Trib) Vijayrattan Balakridhna Mittal v. Dy CIT ( 2020) 203 TTJ 288 ( Mum) ( Trib)

S. 68 : Cash credits – Penny stock – Accomodation entries – Sale of shares – Capital gains – Exemption – Addition cannot be made on presumption – Entitle to exemption – When no incriminating material was not found in the course of search , no addition can be made – Estimation of commission was also deleted . [ S.10 (38) 45 , 69C , 132 ,133(6), 153A]

D.S.Patil v .PCIT (Bang ) ( Trib) www.itatonline.org

S. 263 : Commissioner – Revision of orders prejudicial to revenue – Penalty dropped by Assessing Officer on consideration of replies – Revision order directing the Assessing Officer to initiate penalty proceedings was quashed [ S. 132(4), 153A, 153C, 271AAB ]