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. 32 : Depreciation-Unabsorbed depreciation-Carry forward and set off of-Unabsorbed depreciation loss for assessment year 1995-96 to be carried forward and set off against future profits beyond eight years holding that amendment by Finance Act, 2001 and CBDT Circular No. 14/2001 was applicable retrospectively. [S. 32 (2), 72]

CIT v. Bhima Sahakari Sakhar Karkhana Ltd. (2020) 121 taxmann.com 6 (Bom.)(HC) Editorial : SLP of revenue is dismissed, CIT v. Bhima Sahakari Karkhana Ltd. (2020) 275 Taxman 390 (SC)

S. 32 : Depreciation-Goodwill-Held to be allowable.

PCIT v. Zydus Wellness Ltd. (2019) 112 taxmann.com 400 (Guj.) (HC) Editorial : SLP of revenue is dismissed, PCIT v. Zydus Wellness Ltd. (2020) 269 Taxman 57 (SC) Followed CIT v. SMIFS Securities Limited, (2012) 13 SCC 488.

S. 28(i) : Business loss-Foreign exchange forward contract loss-Allowable as business loss.

CIT v. C.J Exports (2020) 121 taxmann.com 8 (Bom.)(HC) Editorial : SLP of revenue is dismissed as withdrawn due to low tax effect, CIT v. C.J Exports (2020) 275 Taxman 388 (SC)

S. 28(i) : Business income-Income from other sources-Interest earned from surplus fund assessable as business income-Expenditure is held to be allowable as business expenditure. [S. 37 (1), 56, 260A]

PCIT v. NTPC SAIL Power Co. (P.) Ltd. (2020) 117 taxmann.com 135 (Delhi)(HC) Editorial : SLP of revenue is dismissed due to low tax effect, PCIT v. NTPC SAIL Power Co. (P.) Ltd. (2020) 272 Taxman 92 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Investment was made from interest free funds-No disallowance could be made. [R. 8D]

CIT v. Weizmann Ltd (2020) 115 taxmann.com 246 (Bom.)(HC) Editorial : SLP of revenue is dismissed as withdrawn as due to low tax effect, CIT v. Weizmann Ltd. (2020) 273 Taxman 15 (SC)

S. 14A : Disallowance of expenditure-Exempt income-Provision is not applicable to prior to assessment year 2007-08.

CIT v. State Bank of Travancore (2020) 114 taxmann.com 555 (Ker.) (HC) Editorial : SLP of revenue is dismissed, CIT v. State Bank of Travancore (2020) 269 Taxman 571 (SC)

S. 12AA : Procedure for registration-Trust or institution-School-Entire expenditure incurred by assessee was for purposes of school-Denial of registration is held to be not justified. [S.2 (15), 11]

CIT(E) v. Rural Education & Women Welfare Society, SAS Nagar (2020) 114 taxmann.com 190 (Punj. & Har.) (HC) Editorial: SLP of revenue is dismissed, CIT (E) v. Rural Education & Women Welfare Society, SAS Nagar (2020) 269 Taxman 466 (SC)

S. 11 : Property held for charitable purposes-Trade association-Object of promoting awareness and information dissemination with respect to automobile industry-Fees for conducting seminars-Entitle to exemption. [S. 2(15)]

CIT (E) v. Society of Indian Automobile Manufactures (2020) 117 taxmann.com 129 (Delhi) (HC) Editorial : SLP of revenue is dismissed due to low tax effect, CIT (E) v. Society of Indian Automobile Manufactures (2020) 272 Taxman 99 (SC)

S. 11 : Property held for charitable purposes-Providing services of relief to poor, education and medical relief would fall within scope of general public utility-Entitle to exemption. [S. 2(15), 12A, 80G]

CIT(E) v. Praxis Institute For Participatory Practices (2020) 113 taxmann.com 148 (Delhi)(HC) Editorial : SLP is granted to the revenue, CIT (E) v. Praxis Institute For Participatory Practices (2020) 269 Taxman 38 (SC)

S. 10B : Export oriented undertakings-Brought forward unabsorbed depreciation and losses-Not eligible unit-Cannot be setoff against current profit of eligible unit for computing deduction.

CIT v. Ganesh Polychem Ltd. (2020) 120 taxmann.com 270 (Bom.)(HC) Editorial : SLP of revenue is dismissed as withdrawn due to low tax effect, CIT v. Ganesh Polychem Ltd. (2020) 274 Taxman 455 (SC).