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. 43B : Deductions on actual payment-Interest payable to Financial Institutions-Rehabilitation plan and accepting debentures in discharge of outstanding interest-Explanation 3C, cannot be invoked-Interest is allowable as deduction-Interpretation of taxing statutes-Retrospective provision for the removal of doubts Cannot be presumed to be retrospective if it alters or changes law as it stood-Ambiguity in language to be resolved in favour of assessee. [S.43D]
M. M. Aqua Technologies Ltd. v. CIT (2021) 436 ITR 582 / 204 DTR 337 / 321 CTR 753 / 282 Taxman 281 (SC) Editorial : Decision of the Delhi High Court in CIT v M. M. Aqua Technologies Ltd. (2015) 376 ITR 498 (Delhi) (HC) and CIT v. M. M. Aqua Technologies Ltd. (2016) 386 ITR 441 (Delhi) (HC), reversed.
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payment genuine-Necessitated by circumstances-No disallowance can be made-Block assessment-Addition deleted on facts-No question of law. [S. 260A]
CIT v. Jubilee Plot and Housing Pvt. Ltd. (2021) 436 ITR 424 (Mad.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Commuted and discounted lease rent-Allowable as revenue expenditure.
Coforge Ltd. v. ACIT (2021) 436 ITR 546 / 204 DTR 273 / 322 CTR 10 (Delhi)(HC)
S. 35D : Amortisation of preliminary expenses-Demerger-Spin Off-Entitled to amortisation of expenses on demerger.
Coforge Ltd. v. ACIT (2021) 436 ITR 546 / 204 DTR 273 / 322 CTR 10 (Delhi)(HC)
S. 32 : Depreciation-Building-Road-Entitle to depreciation at 10%-Depreciation on property held on lease-Depends on terms of lease-Matter remanded. [S. 32(1)(ii)]
CIT v. Tamilnadu Road Development Company Ltd. (2021)436 ITR 323 (Mad.)(HC)
S. 32 : Depreciation-Carry forward and set off-Unabsorbed depreciation on 1-4-2002 can be carried forward and set off without taking into account number of years of such carry forward. [S. 32 (2)]
CIT v. KMC Speciality Hospitals India Ltd. (2021)436 ITR 534/ 283 Taxman 13 (Mad.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-No dividend income earned-Disallowance cannot be made [R. 8D]
Tamilnadu Road Development Co. Ltd. v. Dy.CIT (2021) 436 ITR 298 (Mad.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-No exempt income-Disallowance cannot be made. [R. 8D]
CIT v. Tamilnadu Road Development Company Ltd. (2021)436 ITR 323 (Mad.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-Enhancement of disallowance is held to be not valid. [R. 8D]
CIT v. Sesa Goa Ltd (2021)436 ITR 17 / 203 DTR 97/ 321 CTR 113 (Bom.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-Onus on revenue to prove that disallowance was erroneous-Without examining the accounts disallowance is not justified [R.8D]
Coforge Limited v. ACIT (2021) 436 ITR 546 / 204 DTR 273 / 322 CTR 10 (Delhi)(HC)