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-Intangible Asset-Brand licence fee-Depreciation is held to be allowable.

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

S. 32 : Depreciation-Leased assets-Entitle for depreciation.

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

S. 28(iv) : Business income-Value of any benefit or perquisites-Converted in to money or not-Receipt of capital asset from holding company-Enhanced profit would be eligible deduction u/s. 10A-Issue left open. [S. 10A, 69]

Brocade Communications Systems (P.) Ltd. v. DCIT (2020) 185 ITD 634 (Bang.)(Trib.)

S. 28(i) : Business loss-Sale of shares-Disallowance of loss was deleted.

Alka Jain (Smt.) v. ACIT (2020) 80 ITR 464 / 185 ITD 224 / 207 TTJ 1013 (Delhi)(Trib.)

S. 28(i) : Business loss-Derivative contracts-Futures and options-Interim report of SEBI-Loss in trading from stock option-Loss allowable as business loss.

Kundan Rice Mills Ltd. v. ACIT (2020) 83 ITR 466 / 185 ITD 765 (Delhi)(Trib.)

S. 28(i) : Business income-Redemption of debentures-Amount earned on redemption of debentures by company in which investment was made, would be taxable as business income-Proportionate revenue-Net amount received is held to be taxable. [S. 145]

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

S. 23 : Income from house property-Annual value-Stock in trade-Fair market value-Used for the purpose of business-Addition cannot be made on the basis of notional annual value.[S. 22]

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

S. 17(2) : Perquisite-Salary-Medical allowance-Fixed medical allowance was given-No proof of medical expenditure was furnished-Taxable as salary income. [S. 15]

Branch Manager, LIC of India. v. ITO (TDS) (2020) 185 ITD 77/196 DTR 261/(2021)209 TTJ 1040 (Cuttack)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Investments in Indian companies which did not yielded exempt dividend income-Excluded while computing disallowance. [R. 8D(2)(iii)]

Pentamedia Graphics Ltd. v. DCIT (2020) 80 ITR 555/185 ITD 45/190 DTR 391/205 TTJ 892 (Chennai)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction-suo motu disallowance-Satisfaction cannot be on the basis of mechanism of Rule 8D itself. [S. 14A(2), R. 8D]

Tata Industries Ltd. v. DCIT (2020) 185 ITD 215 (Mum.) (Trib.)