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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Constitution of India

362 : Corona Virus Lockdown Crisis – Extension of interim orders – Expiring before 30 -04 -2020 – Shall continue to operate till then – Interim orders which are not granted for limited duration are to operate till further orders shall remain unaffected by this order .[ Art . 226, 227 ]

Court on its own Motion ( Bom) (HC ) www.itat online .org.

S. 80IA : Industrial undertakings–Back ward area-Not located in the industrial backward district which has been mentioned in the notification issued by the Central Govt-Not entitle to deduction. [S. 80HH(2), 80IA(2)(iv)(c)]

CIT v. Endeka Ceramics (India) Pvt. Ltd. (Formerly Johnson Mathey Ceramics India Ltd.) (2020) 423 ITR 117/ 186 DTR 369 / 313 CTR 238 (Karn.)(HC)

S. 80IA : Industrial undertakings–Writ of mandamus or otherwise to respondent to notify the Industrial Park of the petitioner under Rule 18C of the Income Tax Rules, 1962. [S. 80IB (10), Art. 226]

Softzone Tech Park Ltd. v. CBDT (2020) 421 ITR 398 / 185 DTR 92 / 312 CTR 289 (Karn.)(HC)

S. 80IA : Industrial undertakings–Separate and independent unit-Common excise registration-Common electricity-Common water connection-Not an extension of existing units-Different products manufactured–Written down value of machinery transferred was less than 20 % of the value. [S. 80IB]

PCIT v. Medley Pharmaceuticals Ltd. (2020) 185 DTR 213/ 317 CTR 599 (Bom.) (HC)

S. 56 : Income from other sources–Relative–Gift from brother in law is relative-Cash credits–No addition can be made as cash credits–Genuineness is established. [S. 56(2)(vii), 68, 132]

PCIT v. Arvind N. Nopany (2020) 185 DTR 369 / 313 CTR 87 (Guj.) (HC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Contractors-Provisions are not applicable where neither the assessee nor the party engaged by assessee was a contractor-No disallowances can be made. [S. 194(c)]

ACIT v. Alfran Construction Pvt. Ltd. (2020) 186 DTR 53/ 313 CTR 365 (Bom.) (HC)

S. 37(1) : Business expenditure–Sales promotion expenses–Held to be allowable as business expenditure.

PCIT v. Merck Ltd. (2020) 185 DTR 401 / 312 CTR 242/ 275 Taxman 181 / ( 2021 ) 434 ITR 596 (Bom.) (HC)

S. 37(1) : Business expenditure–Capital or revenue–Buy back of shares-Held to be revenue expenditure.

PCIT v. Merck Ltd. (2020) 185 DTR 401 / 312 CTR 242 / 275 Taxman 181 / ( 2021 ) 434 ITR 596(Bom.)(HC)

S. 37(1) : Business expenditure–Capital or revenue–Buy back of shares-Held to be revenue expenditure.

PCIT v. Merck Ltd. (2020) 185 DTR 401 / 312 CTR 242/ 275 Taxman 181/ ( 2021 ) 434 ITR 596 (Bom.)(HC)

S. 37(1) : Business expenditure–Technical consultancy fees is held to be allowable business expenditure.

PCIT v. Merck Ltd. (2020) 185 DTR 401 / 312 CTR 242/ 275 Taxman 181/ ( 2021 ) 434 ITR 596 (Bom.) (HC)