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-No reasonable cause to make payment- Disallowance is held to be justified. [R. 6DD]
Nam Estates Pvt. Ltd. v. ITO (2020) 428 ITR 186/(2021) 277 Taxman 169 (Karn.)(HC)
S. 37(1) : Business expenditure-Service charges paid to employees in terms of agreement entered into under Industrial Disputes Act-Allowable as deduction. [Industrial Disputes Act, 1947, S.18(1)]
New Woodlands Hotel Pvt. Ltd. v. ACIT (2020) 428 ITR 492 / 274 Taxman 468 / 196 DTR 449 (Mad.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Loan to purchase plant and machinery-Increase in liability due to fluctuation in foreign exchange rates-Capital expenditure.
Continuum Wind Energe (India) Pvt. Ltd. v. Dy. CIT (2020) 428 ITR 559 (2021) 277 Taxman 30 (Mad.)(HC)
S. 37(1) : Business expenditure-Bank-Purchase and sale of securities -Broken period interest paid on purchase of securities allowable as deduction when the broken period interest from sale offered to tax as business income. [S. 28(i), 145]
CIT(LTU) v. State Bank of India (SBI) (2020) 428 ITR 316/194 DTR 259 / (2021 ) 277 Taxman (Karn.)(HC) Editorial : Notice issued in SLP filed against the High Court order . CIT(LTU) v. State Bank of India ( 2021 ) 281 Taxman 368 (SC)
S. 32 : Depreciation-Unabsorbed Depreciation-Carry Forward And Set Off-Finance Act Of 2001 and Circular No. 14 of 2001-No time limit for carry forward and set off. [S. 32(2)]
CIT v. Sanmar Speciality Chemicals Ltd. (2020) 428 ITR 237/ ( 2021) 278 Taxman 194 (Mad.)(HC)
S. 28(i) : Business income-Income from house property-Rental income from Technology Park owned, developed and maintained by assessee-Taxable as business income-Remand by Appellate Tribunal is held to be not proper. [S. 22,80IAB, 254(1)]
Lulu Tech Park Pvt. Ltd. v. PCIT (2020) 428 ITR 514 (Mad.)(HC)
S. 17(3) : Profits in lieu of salary-Amounts paid to employees under non-compete agreement-Not taxable in India-DTAA-India-USA. [S. 5(2) 9(1), 15, 195, 260A, Art, 16 23]
DIT(IT) v. Sasken Communication Technologies Ltd. (2020) 428 ITR 194/315 CTR 320/191 DTR 214/ 117 taxmann.com 278 (Karn.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-Non taxable income. [R. 8D]
CIT v. Celebrity Fashion Ltd. (2020) 428 ITR 470 (Mad.)(HC)
S. 12AA : Procedure for registration–Trust or institution-Charitable purpose-Amendment has not changed law with regard to cancellation of registration-Cancellation of registration is held to be not valid- Order of Tribunal is affirmed. [S. 2(15), 12AA(3)]
CIT v. Gujarat Maritime Board (No. 1) (2020) 428 ITR 152 / (2021) 277 Taxman 376 (Guj.)(HC)
S. 12AA : Procedure for registration-Trust or institution-Charitable purpose-At time of granting registration commissioner not required to examine whether income derived by trust spent for charitable purposes or trust is earning profit-Order of Tribunal is affirmed. [S. 260A]
CIT v. Divine Shiksha Samiti (2020) 428 ITR 552/188 DTR 346/316 CTR 385/(2021) 276 Taxman 183 (MP)(HC)