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-Real estate business-Provision made in account for security deposit-Amount forfeited due to breach of contract-Neither allowable as business expenditure nor as bad debt. [S. 36(1)(vii)]
Allu Arvind Babu (No. 2) v. ACIT (NO. 2) (2021) 430 ITR 183 / 197 DTR 93/318 CTR 102 (Mad.)(HC)
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. 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)