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. 37(1) : Business expenditure-Club membership fees-Club service charges-Membership fee allowable as deduction-Amount spent on services is held to be not allowable.

Apollo Tyres Ltd. v. Dy. CIT (2021) 438 ITR 526/ 283 Taxman 427 (Ker.)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Acquisition of equipment-Used by dealer in showrooms-Not allowable as revenue expenditure. [S. 32]

Apollo Tyres Ltd. v. Dy. CIT (2021) 438 ITR 526/ 283 Taxman 427 (Ker.)(HC)

S. 37(1) : Business expenditure-Provision for commission-Ad-hoc basis-Not deductible.

Apollo Tyres Ltd. v. ACIT (2021) 438 ITR 536/ 283 Taxman 427 (Ker.)(HC)

S. 37(1) : Business expenditure-Ex gratia payments to employees-Allowable as deduction.

CIT v. Karur Vysya Bank Ltd. (2021) 438 ITR 465 (Mad.)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Software expenses-Arrears of wages-Ex-gratia payment-Allowable as business expenditure-Payment made to Registrar of Companies for increasing authorised capital-Not allowable as revenue expenditure.

Karur Vysya Bank Ltd. v. CIT (2021) 438 ITR 465 /(2022) 284 Taxman 692 (Mad.)(HC)

S. 36(1)(vii) :Bad debt-Provision made for bad debts-Banking company-Allowable as deduction though not debited in profit and loss account. [S. 145]

CIT, LTU v. Vijay Bank (2021) 130 taxmann.com 148 (Karn.)(HC) Editorial :SLP was granted to revenue, CIT, LTU v. Vijay Bank (2021) 282 Taxman 296 (SC)

S. 36(1)(vii) : Bad debt-Advance paid for acquisition of capital asset-Amount written off-Not allowable as bad debt. [S. 37(1)]

Apollo Tyres Ltd. v. Dy. CIT (2021) 438 ITR 526/ 283 Taxman 427 (Ker.)(HC)

S. 36(1)(iii) : Interest on borrowed capital-Commercial expediency-Borrowed funds not diverted to sister concerns-Allowable as deduction. [S. 37(1)]

CIT v. GMR Energy Ltd. (2021)437 ITR 240 (Karn.)(HC)

S. 32(2) : Depreciation-Unabsorbed depreciation-Set-off-Allowed to be carried forward and set off after a period of eight years without any limit as per section 32 (2) as amended by Finance Act, 2001. [S. 32]

PCIT v. Petrofils Co-op. Ltd. (2021) 130 taxmann.com 190 (Guj.)(HC) Editorial : SLP of revenue was dismissed ; PCIT v. Petrofils Co-op. Ltd. (2021) 282 Taxman 319 (SC)

S. 32 : Depreciation-Business of mining and transportation-Dumpers-Higher rate of depreciation of 30% is allowable-No substantial question of law. [S. 260A]

PCIT v. H.D. Enterprises (2021) 130 taxmann.com 289 (Guj.)(HC) Editorial : SLP of revenue dismissed, PCIT v. H.D. Enterprises (2021) 282 Taxman 382 (SC)/) (2021 438 ITR 2 (ST) (SC)