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. 28(i) : Business income-Capital gains-Bad debt-There is no embargo either on Assessing Officer or on assessee to show income or loss under head business or profession in subsequent year merely because it was shown in earlier assessment year-Income has to be assessed under correct head-Allowability of bad debt or business loss has to be determined in the year in which it is to be allowed-Bad debt is allowable in the year it is written off in the books of account. [S. 36(1)(viii), 36(2), 45, 143(3)]

Anant Raj Ltd. v. ACIT (2020) 184 ITD 820/191 DTR 32/206 TTJ 1 (Delhi)(Trib.)

S. 28(i) : Business income-Excess wastage of raw material-Cannot be assessed as suppressed/unaccounted production.

Medley Pharmaceuticals Ltd. v. DCIT (2020) 184 ITD 8/207 TTJ 143 (Mum.)(Trib.)

S. 23 : Income from house property-Annual value-Unrealised rent-Failure to produce evidence-Unrealized rent not allowable as deduction. [S. 24, R.4]

ITO v. Yashovardhan Tyagi. (2020) 184 ITD 461 (Delhi)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Surrender of right to claim exemption-Matter remanded. [S. 10(34)]

BBR Projects (P.) Ltd. v. ITO (2020) 184 ITD 842 (Hyd.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Interest free funds available was far more than investment-No interest expenditure can be disallowed. [R. 8D]

Zaveri & Co. (P.) Ltd. v. DCIT (2020) 184 ITD 777 (Ahd.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Average value of investment which has yielded income during year shall only be considered for purpose of disallowance. [R. 8D]

Anant Raj Ltd. v. ACIT (2020) 184 ITD 820 (Delhi)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-No disallowance of expenses can be made if there is no exempt income earned during relevant previous year. [R. 8D]

Global Tech Park (P.) Ltd. v. ACIT (2020) 184 ITD 673 (Bang.)(Trib.)

S. 14A : Disallowance of expenditure-Exempt income-Not recording of satisfaction-Disallowance is held to be not justified. [R. 8D]

DCIT v. DML Exim (P.) Ltd. (2020) 184 ITD 432 (Rajkot)(Trib.)

S. 11 : Property held for charitable purposes-Application of income-Income applied outside India for educational purpose-Specific approval from CBDT for said purpose-Claim of exemption was allowed-Rectification order passed by the Assessing Officer allowing the claim-Rectification order merged with Assessment order-Commissioner (Appeals) cannot hold that original order will survive. [S. 11(1)(c), 12A, 250]

Tata Education and Development Trust v. ACIT (2020) 184 ITD 234 / 192 DTR 313 / 206 TTJ 777 (Mum.)(Trib.)

S. 10A : Free trade zone-Turnover-Providing technical services outside India-Expenditure incurred towards date link charges/telecommunication charges etc-Excluded both from export turnover and total turnover for purpose of computation of deduction-Profit enhanced on account of disallowance entitled for deduction-Subsequent realized export income which was claimed by filing revised return is entitle for deduction. [S. 40(a)(ia)]

Yahoo Software Development (P.) Ltd. v. Dy. CIT (2020) 80 ITR 528 / 184 ITD 305 / 196 DTR 241 / 208 TTJ 1072 (Bang.)(Trib.)