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. 44 : Insurance business-Income from shareholders’ accounts to be assessed as insurance business-Actuarial valuation-Norms regarding actuarial valuation not altered-Dividend exempt-Disallowance is not applicable. [S. 10(34), 14A, 37(1), 80G, Insurance Act 1938, 3(4)(f)]

Max New York Life Insurance Company Ltd. v. Dy.CIT (2020) 83 ITR 145 (Delhi)(Trib.)

S. 43B : Deductions on actual payment-Employees’ contributions to provident fund and employees’ State Insurance Contribution-Paid before due date of filing return-Entitle to deduction. [S. 139 (1)]

MANI Square Ltd. v. ACIT (2020) 83 ITR 241 (Kol.)(Trib.)

S. 43(6) : Written down value-Depreciation-Block of assets-Assessing Officer to reduce only sale proceeds from written down value of block of assets and allow depreciation on balance of written down value. [S. 2(11), 45, 50]

Shakti Hormann Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 515 (Hyd.)(Trib.)

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Salary paid to Directors-Failure of the Assessing Officer to substantiate-Deletion of addition is held to be valid.

IKEA Trading India Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 415 / (2021) 186 ITD 473 (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment Received as partner of joint venture-Amount paid to joint venture partner diverted by overriding title-Disallowance not sustainable.

Peartree Enterprises Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 436 (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission-Non-Resident-Matter remanded for verification. [S. 195]

Maharaja Shree Umaid Mills Ltd. v. Dy.CIT (2020) 83 ITR 498 (Jaipur)(Trib.)

S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident –Service rendered outside India-Not liable to deduct tax at source.

Divya Creations v. ACIT (2020) 83 ITR 433 (Delhi)(Trib.)

S. 37(1) : Business expenditure-Loss on revaluation of business advances-Loss on account of foreign exchange rate fluctuation as on date of balance-sheet is allowable as deduction. [S. 28(1)]

Sitae Re P. Ltd. v. ITO (2020) 83 ITR 457 (Delhi)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Expenses on repairs, supply of consumables, and recalibration of machinery-No new asset coming into existence-Allowable as revenue expenses.

Peartree Enterprises Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 436 (Delhi) (Trib.)

S. 37(1) : Business expenditure-Expenditure incurred on celebration of Ireland-Not allowable as business expenditure-Unverifiable and personal element involved-Disallowance of 20 Per Cent. is up held.

MKJ Enterprises Ltd. v. Dy.CIT (2020) 83 ITR 224/ (2021 ) 187 ITD 678/ 212 TTJ 507 / 204 DTR 51 (Kol.)(Trib.)