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
Click here to download the pdf versions of the Digest of case laws

S.43B: Deductions on actual payment – Custom duty – Allowable in year in which actually paid .

CIT(LTU) v. Asea Brown Boveri Ltd. (2020) 427 ITR 166 / 192 DTR 376/272 Taxman 224 (Karn)(HC)

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Deferment of Sales tax under scheme of State Government — Amount paid on net present value basis —Difference between sales tax mount paid on net present value and future liability not business income [ S.28(iv) ]

CIT v .Wheels India Ltd. (2020) 427 ITR 150 (Mad) (HC)

S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits -Payments made in exceptional circumstances — Payments not disallowable [ R.6DD ]

CIT(LTU) v. Asea Brown Boveri Ltd. (2020) 427 ITR 166 / 192 DTR 376/272 Taxman 224 (Karn)(HC)

S.37(1): Business expenditure — Capital or revenue -Club membership -Revenue expenditure- Disallowance of part of expenditure – Held to be not justified .

Ingersoll-Rand (India) Ltd v .CIT (2020) 427 ITR 158/192 DTR 369 (Karn)(HC)

S. 37(1) : Business expenditure -Travel expenses of employees —To be computed based on average basis — Not Tripwise . [ R.6D ]

CIT(LTU) v. Asea Brown Boveri Ltd. (2020) 427 ITR 166/ 192 DTR 376/272 Taxman 224 (Karn)(HC)

S. 37(1) : Business expenditure -Capital or revenue – Expenditure on developing new product — Capital expenditure.

Bioplus Life Sciences Pvt. Ltd. v Dy. CIT (2020) 427 ITR 325 (Karn)(HC)

S.32: Depreciation — Unabsorbed depreciation — Carry forward and set off — Unabsorbed depreciation can be carried forward and set off against profits of current year.

PCIT v. Destimoney India Services Pvt. Ltd. (2020) 427 ITR 330 (Bom) (HC)

S. 28(i) : Business income – Income from house property — Development of software park and leasing of it —Assessable as business income- The tendency of the Revenue authorities not to follow the judgments of superior constitutional courts deserves to be strongly deprecated by imposition of suitable costs on them. [ S.22 ]

PCIT v. Khivraj Motors Pvt. Ltd. (2020) 427 ITR 113/ 193 DTR 205/ 317 CTR 184 / 274 Taxman 308 (Mad) (HC)

S. 14A : Disallowance of expenditure – Exempt income – Amendment is not retrospective- Not applicable to Assessment year prior to AY 2007-08 [ S. 10(33),254(1) ]

Ingersoll-Rand (India) Ltd v .CIT (2020) 427 ITR 158/192 DTR 369 (Karn)(HC)

S. 10AA : Special Economic Zones – Expenses incurred in foreign exchange for providing technical services not includible — Profits and gains derived from onsite development of computer services outside India deemed to be derived from export of computer software outside India [ 10B ]

Mindtree Ltd. v. ACIT (2020) 427 ITR 338/193 DTR 289 (Karn)(HC)