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-Passive infrastructure and automated teller machine sites to telecom and banking industry Professional Charges-Interest on borrowed capital-Not carried on any business during the relevant year-Not allowable as business expenditure. [S. 36(1)(iii)]

Quippo Telecom Infrastructure (P.) Ltd. v. ACIT (2020) 185 ITD 275 / (2021) 198 DTR 378 / 209 TTJ 828 (Delhi) (Trib.)

S. 37(1) : Business expenditure-Ad-hoc addition-Books of account not rejected-Addition is held to be not valid.

Katira Construction Ltd. v. ACIT (2020) 185 ITD 173 (Rajkot) (Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Abandoned project-Promotion of business of company-Held to be revenue expenditure.

Adadyn Technologies (P.) Ltd. v. ACIT (2020) 185 ITD 426 (Bang.)(Trib.)

S. 37(1) : Business expenditure-Commission-Details of service was not furnished-Disallowance is held to be justified.

Ramesh Exports (P.) Ltd. v. DCIT (2020) 185 ITD 551 (Bang.)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Expenditure incurred towards software was to be treated as capital in nature, however depreciation was directed to be allowed-Reimbursement of property tax-Matter remanded. [S. 32]

Star India (P.) Ltd. v. ACIT (2020) 185 ITD 559/81 ITR 8 (SN) (Mum.)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Expenses incurred by assessee for issue of bonds was to be allowed as revenue expenditure-Expenses from benevolent fond-Held to be allowable.

DCIT v. IFCI Ltd. (2020) 185 ITD 742 (Delhi)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Used for acquisition of land which is part of inventory-Allowable as deduction.

DCIT v. Cornerstone Property Investment (P.) Ltd. (2020) 185 ITD 202 (Bang.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Purchase of machinery-Interest is allowable as deduction even if said machinery was not put to use in year under consideration.

K. B. Mehta Construction (P.) Ltd. v. DCIT (2020) 185 ITD 81 (Ahd.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Redemption of debentures-Loss on redemption allowable as business loss. [S. 28(i)]

Shivsagar Builders (P.) Ltd. v. ACIT (2020) 185 ITD 684 (Delhi)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Firm and partners-Interest is paid on capital contributed by the partners-It no more remained interest free funds-Disallowance of interest is held to be justified [S. 2(28A), 40(b)]

Devi Construction Company v. DCIT (2020) 185 ITD 858/193 DTR 225/207 TTJ 130 (Pune)(Trib.)