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-Capital or revenue-Expenditure on acquisition of technical know-how-Enduring benefit-Not allowable as revenue expenditure.

Telco Construction Co. Ltd. v. ACIT (2021) 430 ITR 22 / 277 Taxman 137 (Karn.)(HC)

S. 37(1) : Business expenditure-Take over business-Scheme for voluntary retirement of employees-Allowable as business expenditure. [S. 10(10C)]

CIT v. G. E. Medical Systems (I.) (P.) Ltd. (2021) 430 ITR 494 / 197 DTR 449 / 277 Taxman 315 (Karn.)( HC)

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-Deductible-Accrued interest on non-performing assets- Not taxable. [S. 4, 145]

CIT v. Davangere District Central Co-Operative Bank Ltd. (2021) 430 ITR 29 / 277 Taxman 218 (Karn.)(HC)

S. 36(1)(vii) : Bad debt-Written off as irrecoverable in accounts-Allowable as deduction. [S. 36(2)]

Sesa Goa Ltd. v. CIT (NO. 1) (2021)430 ITR 109 (Bom.)(HC)

S. 36(1)(vii) : Bad debt-Amount written off in accounts-Allowable as deduction-Res Judicata-Not Applicable-Principle of consistency is applicable. [S. 36(2)]

Big Bags International (P.) Ltd. v. Dy.CIT (2021) 430 ITR 434 (Karn.)(HC)

S. 32 : Depreciation-Finance lease-Lessor of assets leased in course of leasing business-Depreciation allowable.

Hewlett-Packard India Sales Pvt. Ltd. v. CIT (2021) 430 ITR 460/ 277 Taxman 524 / 202 DTR 293/ 279 Taxman 355 (Karn.)(HC)

S. 28(i) : Business loss-Chit business-Bid loss-Mercantile system of accounting-Remanded to the Assessing Officer. [S. 37(1), 145]

CIT v. Shriram Chits (Karnataka) Pvt. Ltd. (2021) 430 ITR 414 (Karn.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Investment in subsidiary companies-When there is no exempt income-No disallowance can be made. [R. 8D]

CIT v. Continuum Wind Energy (India) Pvt. Ltd. (2021) 430 ITR 52 / 276 Taxman 286 (Mad.)(HC)

S. 12A : Registration-Trust or institution-Trust deed amended and registration granted with effect from 1-4-2015-Application filed on 23-02 2016-Registration would not have retrospective effect and be applicable from assessment Year 2013-14.

Soundaram Chokkanathan Educational and Charitable Trust v. ITO (2021) 430 ITR 440 / 197 DTR 440/ 279 Taxman 210 (Mad.)(HC)

S. 10B : Export oriented undertakings-Manufacture or Processing-Marine product-Pasteurized crab meat-Processing and exporting of Crab meat-Remanded to the Assessing Officer to examine the nature of activity. [S. 10B(2)(ii), 10B(2)(iii), 80IB(11A) Special Economic Zone Act, 2005, S. 2(r)]

Philips Foods India Pvt. Ltd. v. ACIT (2021) 430 ITR 199 (Mad.)(HC)