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. 40(a)(ia) : Amounts not deductible-Deduction at source-lease rentals-lease under finance lease arrangement, no tax at source was to be deducted-Disallowance is held to be not valid. [S. 194C, 194I]

Texas Instruments (India) (P.) Ltd. v. ACIT (2020)183 ITD 7/ 195 DTR 347/207 TTJ 586 (Bang.)(Trib.)

S. 37(1) : Business expenditure-Payment of rent allowable as revenue expenditure.

ACIT v. Padma Logistics & Khanij (P.) Ltd. (2020) 81 ITR 61 / 183 ITD 891 / 208 TTJ 67 (Kol.)(Trib.)

S. 37(1) : Business expenditure-Prepaid expenses-Matter remanded. [S. 145]

Pricewaterhouse Coopers (P.) Ltd. v. ACIT (2020) 183 ITD 354 (Kol.)(Trib.)

S. 37(1) : Business expenditure-Ad-hoc disallowance-When the books of account is not rejected-No disallowance can be made [S.144C, 145]

Pricewaterhouse Coopers (P.) Ltd. v. ACIT (2020) 183 ITD 354 (Kol.)(Trib.)

S. 37(1) : Business expenditure-Remuneration from various firms-Expenditure salary and wages to staff, postage, Travel and conveyance and legal fees etc. for earning such business income as claimed by assessee would be allowable-Income from other sources-Deduction-Matter remanded. [S. 57(iii)]

ACIT v. Ijyaraj Singh (2020) 183 ITD 237 /207 TTJ 953 (Jaipur) (Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Electronic design automation (FDA) software license-Right to use-Allowable as revenue expenditure. [S. 32]

Texas Instruments (India) (P.) Ltd. v. ACIT (2020) 183 ITD 7 /195 DTR 7/ 207 TTJ 586 (Bang.)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Expansion of business-Project abandoned-Held to be capital expenditure.

Texas Instruments (India) (P.) Ltd. v. ACIT (2020) 183 ITD 7 /195 DTR 7/ 207 TTJ 586 (Bang.)(Trib.)

S. 36(1)(viii) : Eligible business-Reserve-Commercial loan-Borrower failed to construct on plot of land for residential purpose within three years has to be considered eligible business-Only the income which has direct and immediate nexus with grant of loans for construction of house only included for computation of deduction.

Hi-tech Estates & Promoters (P.) Ltd. (2020) 84 ITR 10 / 183 ITD 690 / 207 TTJ 209 (Cuttack)(Trib.)

S. 36(1)(vii) : Bad debt-Reversal of provision-Matter remanded to the Assessing Officer. [S. 36(2)]

Pricewaterhouse Coopers (P.) Ltd. v. ACIT (2020) 183 ITD 354 (Kol.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Setting up of business-Real estate business-Entered in to development agreement of township-Claim of deduction is allowable. [S. 28(i)]

Jindal Realty (P.) Ltd. v. ACIT (2020) 82 ITR 289 / 183 ITD 228 (Delhi)(Trib.)