S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Salaries paid to director cannot be disallowed on the ground that salaries paid in earlier year was less than the relevant year-Burden is on revenue to demonstrate that the remuneration is excessive as per market rate-Disallowance is deleted.
Egberts India Pvt Ltd (2024) Chamber’s Journal-July-P. 123 (Chennai)(Trib)
Digest of case laws
Online digest of latest case laws
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
Click here to download the pdf versions of the Digest of case laws S. 37(1) : Business expenditure-Non-Compete fees paid to retiring partner-Allowable as revenue expenditure.
Samkeet Arya Homes LLP v. ITO (2024) Chamber’s Journal-August-P. 170 (Amritsar) (Trib)S. 37(1) : Business expenditure-Capital or revenue-Project cost-Pending capitalisation-Written off-Allowable as revenue expenditure.
IHHR Hospitality Pvt Ltd v. Add. CIT (2024) Chamber’s Journal-July-P. 122 (Delhi)(Trib)S. 14A : Disallowance of expenditure-Exempt income-Amendment to section 14A by inserting explanation (Amended vide Finance Act, 2022) is applicable prospectively from AY. 2022-23 and not applicable to AY. 2013-14. [R. 8D]
PCIT v. Keti Construction Limited (2024) 162 taxmann.com 278 (MP)(HC)S. 12A : Registration-Trust or institution-Lease transactions-Business income-Lease agreement for 50 Years-Violation of Maharashtra Stamp Act, 1958 and Maharashtra Public Trust Act, 1950-Denial of registration is affirmed. [S.12AA(1), Maharashtra Public Trust Act, 1950, S. 36(IA), Maharashtra Stamp Act, 1958, Registration Act, 1908, S. 17]
Golden Charitable Trust v. CIT(E) (2024) Chamber’s Journal-June-P. 115 (Pune) (Trib)S. 2(31) : Person-Association of person-Characterization of consortium-Agreement-Terms of the agreement will be the deciding factors-Taxable as an AOP and not as individual members.
Pico Deepali Overlay Consortium v. DCIT (2024) Chamber’s Journal-February-P. 94 (Delhi)(Trib)Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
S. 13 : Liability of guarantor is joint and several with principal debtor – Bank is entitled to proceed under SARFAESI Act for properties mortgaged by guarantor. [ S. 13(4), 17 ]
SBI v. Devendra Kumar Sinha (2024) 161 taxmann.com 76 / 184 SCL 28 (SC)S. 68 : Cash credits – Cash deposit – Demoetizaation- Sales – Produced names , address , PAN etc- Parties have responded to the notices u/s 133(6)- Sales are accepted by VAT department – No defects in the books of account – Order of CIT(A) deleting the addition is affirmed .[ S.133(6), 143(3) ]
JCIT v. Aries Agro Ltd (Mum)( Trib) www.itatonline .org .Direct Tax Vivad Se Vishwas Scheme, 2024 (2024) 467 ITR 1 (St)(63)
S. 89 : Definitions-Appellant-Benefit of Vivad Se Vishwas Scheme, 2024 extended to those assesses in whose case the time for filing appeal has not expired as on 22 July 2024.[S.89(1)(a)) DTVSV Act, 2020, S. 2(1)(a), Art. 226]
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
S. 51: Punishment for willful attempt to evade tax-Failure to file return-Search-Prosecution not dependent on completion of assessment-Summing order is upheld-Alternative remedy-Writ petition is dismissed, [S.2(12), 16, 50, 51, Income-Tax Act 1961, S. 131(IA), 132, 139]
Sanjay Bhandari v. ITO (2025) 473 ITR 294 (Delhi) (HC)