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. 37(1) : Business expenditure-Ex gratia payment to employees is held to be allowable as deduction on account of commercial expediency.

CIT v. New India Co. Op. Bank Ltd. (2020) 117 taxmann.com 127 (Bom.)(HC) Editorial : SLP of revenue is dismissed due to low tax effect, CIT v. New India Co. Op. Bank Ltd. (2020) 272 Taxman 435 (SC)

S. 37(1) : Business expenditure-Paid by account payee cheque-Held to be allowable though the purchaser has informed that no agent was involved in the contract.

CIT v. Genus Overseas Electronics (2020) 117 taxmann.com 103 (Raj.)(HC) Editorial : SLP of revenue is dismissed due to low tax effect,, CIT v.. Genus Overseas Electronics (2020) 272 Taxman 22 (SC)

S. 36(1)(iii) : Interest on borrowed capital-Loan given to sister concern-Without charging interest-Disallowance of interest was held to be not valid.

PCIT v. E City Investments and Holdings Company (P.) Ltd. (2020) 117 taxmann.com 123 (Bom.)(HC) Editorial : SLP of revenue is dismissed, PCIT v. E City Investments And Holdings Company (P.) Ltd. (2020) 272 Taxman 90 (SC)

S. 32 : Depreciation-Unabsorbed depreciation-Amalgamation-Unabsorbed depreciation of amalgamating company allowed to be set off against income of amalgamated company for assessment year 2008-09 i.e. beyond period of eight years [S.32].

PCIT v. Supreme Petrochem Ltd. (2020) 115 taxmann.com 221 (Bom.)(HC) Editorial : SLP of revenue is dismissed, PCIT v. Supreme Petrochem Ltd. (2020) 275 Taxman 8 (SC)

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)