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. 36(1)(iii) : Interest on borrowed capital-Setting up of business-Real estate business-Entered in to development agreement of township-Claim of deduction is allowable. [S. 28(i)]

Jindal Realty (P.) Ltd. v. ACIT (2020) 82 ITR 289 / 183 ITD 228 (Delhi)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Advance to sister concern-Failure to prove commercial expediency-Disallowance is held to be justified.

Mangalam Publications (India) (P.) Ltd. v. ACIT (2020) 183 ITD 1 (Cochin)(Trib.)

S. 35D : Amortisation of preliminary expenses-Public limited company-Issue of shares to Qualified Institution Buyers (QIB) would be regarded as issue of shares to public and, thus, expenses incurred on said issue would be eligible for deduction.

Yes Bank Ltd. v. DCIT (2020) 183 ITD 721/192 DTR 385/206 TTJ 913 (Mum.)(Trib.)

S. 35 : Scientific research-Non issue of approval for certain period-Denial of weighted deduction is not justified. [S. 35(2AB]

Advance Enzyme Technologies (P.) Ltd. v. ACIT (2020) 183 ITD 50/190 DTR 37/205 TTJ 679 (Mum.)(Trib.)

S. 32 : Depreciation-Business assets-Business of real estate-Not carried out any business activity during the relevant year-Depreciation is allowable.

Supreme Build Cap (P.) Ltd. ACIT (2020) 183 ITD 728 (Delhi)(Trib.)

S. 32 : Depreciation-Capital spares-Change in accounting policy-Depreciation is allowable at 15%.

Gujarat State Energy Generation Ltd. v. ACIT (2020) 183 ITD 590 (Ahd.)(Trib.)

S. 32 : Depreciation-Additional depreciation-Software development-Matter remanded. [S. 32(iia)]

Texas Instruments (India) (P.) Ltd. v. ACIT (2020) 183 ITD 7 /195 DTR 347/207 TTJ 586 (Bang.)(Trib.)

S. 28(i) : Business loss-Sale of cashew to sister concerns-Conformity with normal commercial practice-Allowable as business loss. [S. 145]

R. Pratap v. CIT (2020) 183 ITD 750/195 DTR 217/208 TTJ 24 (Cochin)(Trib.)/R. Prakash v. CIT (2020) 183 ITD 750/195 DTR 217/208 TTJ 24 (Cochin) (Trib.)/Ramesh Chandran Nair v ACIT CIT (2020) 183 ITD 750/195 DTR 217/208 TTJ 24 (Cochin) (Trib.) T.C .Usha v ACIT CIT (2020) 183 ITD 750/195 DTR 217/208 TTJ 24 (Cochin) (Trib.) Vijaylaxmi Cashew Co v. ACIT CIT (2020) 183 ITD 750/195 DTR 217/208 TTJ 24 (Cochin) (Trib.)

S. 28(i) : Business income-Purchase and sale of immovable properties-Sale of agricultural plot of land-Stock in trade-Assessable as business income and not capital gains. [S. 2(14)(iii), 45]

Kohli Estates (P.) Ltd. v. ITO (2020) 183 ITD 650 / (2021) 209 TTJ 624 (Delhi)(Trib.)

S. 15 : Salaries-Employed in GEII-Assignment to Australia-Remission of salary to Indian Bank-Cannot be taxed as salary earned in India-DTAA-India-Australia. [S. 5, Art. 15]

Paul Xavier Antony Samy. v. ITO(IT) (2020) 183 ITD 143 /78 ITR 48(SN) (Chennai)(Trib.)