This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 32 : Depreciation-Installation of asset-Considered as asset has been put to use-Entitle to depreciation-UPS is to be considered as an integral part of the computers and depreciation is to be allowed @ 60%.

Dy. CIT (LTU) v. Nestle India Ltd. (2020) 194 DTR 113 / 207 TTJ 369 (Delhi)(Trib.)

S. 28(i) : Business loss-Commercial expediency-loss caused as a result of fraud, embezzlement by employees was allowed as business loss. [S. 37(1)]

Washim Urban Co-Operative Bank Ltd. v. Dy.CIT (2020) 191 DTR 310 / 206 TTJ 420 (Nag.)(Trib.)

S. 28(1) : Business loss-losses incurred due to surrender of NLD certificate-Allowable as normal business loss. [S. 37(1)]

ACIT v. Loop Telecom Ltd. (2020) 189 DTR 46 / 205 TTJ 27 (Mum.)(Trib.)

S. 28(i) : Business income-Income from house property-Rule of consistency-No justifiable reasons to change income head-Income continued to be assessed under the head of business income. [S. 22]

Deep Multiplex P. Ltd. v. Dy. CIT (2020) 190 DTR 451 / 205 TTJ 916 (SMC) (Ahd.)(Trib.)

S. 23 : Income from house property-Annual value-No rental income-Security deposits to be adjusted for old outstanding-If amount excess remains then current assessment year outstanding to be adjusted. [S. 22]

Vishwaroop Infotech Pvt. Ltd. (Now Merged with M/s. Wadhwa group Holgings Pvt. Ltd.) v. ACIT (2020) 195 DTR 393 (Mum.)(Trib.)

S. 23 : Income from house property-Annual value-Unsold flats-Stock-in-trade-Before the insertion of S. 23(5)-Addition is held to be not valid. [S. 22, 23(5)]

Osho Developers v. PCIT (2020) 208 TTJ 802 / (2021) 197 DTR 51 (Mum.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-No exempt income-No disallowance can be made. [R. 8D]

DCIT v. SNJ Distillers Pvt. Ltd. (2020) 208 TTJ 968 / (2021) 87 ITR 540 (Chennai)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-No exempt income-No disallowance can be made. [R. 8D]

Dy. CIT v. BMI Whole sale Trading (P) Ltd. (2020) 203 TTJ 797 (Mum.)(Trib.) Dy.CIT v. Brand Marketing (India) (P.) Ltd. (2020) 203 TTJ 797 (Mum.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-AO was required to work out the average of such investment, the income from which did not form part of the total income instead of total value of investment-Matter remanded. [R. 8D(2)(iii)]

Sankalp v. Dy.CIT (2020) 195 DTR 273 / 208 TTJ 399 (Cuttack) (Trib.)

S. 14A : Disallowance of expenditure-Exempt income-No income earned by assessee during the relevant AY-No disallowance can be made. [R. 8D].

Tata Sky Ltd. v. ACIT (2020) 195 DTR 177 / 208 TTJ 194 (Mum.)(Trib.)