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. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Books of account not rejected- Transactions involving less than Rs.20,000 – H Forms obtained-Deletion of addition is held to be justified. [S. 37(1)]
PCIT v. Ajit Ramakant Phatarpekar (2020) 429 ITR 319 / 196 DTR 296 /( 2021 ) 277 Taxman 543 (Bom.)(HC) PCIT v. Neelam Ajit Phatarpekar (2020) 429 ITR 319 / 196 DTR 296/ ( 2021 ) 277 Taxman 543 (Bom.)(HC)
S. 40(a)(iib) : Amounts not deductible-Validity of provision-Exclusive Jurisdiction of High Court to consider-Cause of action for challenge to vires of provision arose on issue of show-cause notice-High Court is directed to dispose of writ petition on merits. [Art. 14, 226]
Tamil Nadu State Marketing Corporation Ltd. v. UOI (2020) 429 ITR 327 / 196 DTR 289 / 317 CTR 961 / (2021) 276 Taxman 378 (SC)
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Non-resident-Interest-Usance charges paid on letters of credit issued by Indian Banks for import of raw materials-Income of non-Resident- Liable to deduct tax at source. [2(28A), 5(2), 9(1)(v)(b), 195(1)]
India Furniture Products Ltd. v. CIT (2020) 429 ITR 432 / 196 DTR 345 / (2021) 318 CTR 57 / 276 Taxman 427 (Bom.)(HC)
S. 37(1) : Business expenditure-Discount on Debentures-Principle of matching concept not applicable-Amount relating to relevant accounting year alone deductible as revenue expenditure. [S. 145]
Shetron Ltd. v. Dy CIT (2020) 429 ITR 340 / 276 Taxman 444/ ( 2021)) 201 DTR 260/ 320 CTR 761 (Karn.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Contribution towards reconstruction of Bridge to enable transportation of assessee’s products to port-Allowable as revenue expenditure.
CIT v. Sociedade De Fomento Industrial Pvt. Ltd. (No. 2) (2020) 429 ITR 358 / (2021) 277 Taxman 6 / 207 DTR 381/ ( 2022) 324 CTR 524 (Bom.)(HC)
S. 37(1) : Business expenditure-Contribution made under specific directions of Government of India to other projects-Contributions to Provident Fund – Held to be allowable as deduction. [S. 36(1)(va), Electricity (Supply) Act, 1948, S. 24]
CIT v. M. P. Electricity Board (2020) 429 ITR 349/(2021) 277 Taxman 483 (MP)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Payment made to an entity under an agreement for additional infrastructure for augmenting continuous supply of electricity-No asset acquired-Held to be allowable as revenue expenditure.
CIT v. Hanon Automative Systems India Private Ltd. (2020) 429 ITR 244/(2021) 277 Taxman 454 / 201 DTR 421(Mad.)(HC)