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. 35D : Amortisation of preliminary expenses – Capital raised for investment in capital equipment, working capital requirement, general corporate purposes – Expenses for extension of undertaking — Allowable. [ S. 35D(2)(c)(iv)]
Dy. CIT v. MBL Infrastructure Ltd. (2020)78 ITR 156 (Kol) (Trib)
S. 32 : Depreciation – Customer relationship rights —Non-compete fees akin to any other business or commercial rights — Depreciation allowable- Cannot take benefit of new claim in reassessment proceedings . [S. 32(1)(ii), 147 ]
Incap Contract Manufacturing Services Pvt. Ltd. v. Dy. CIT (2020)78 ITR 130 ( Bang) (Trib)
S. 14A : Disallowance of expenditure – Exempt income – No Disallowance of expenses relating to dividend received from foreign companies taxable in India and offered to tax – Strategic investments or investments in subsidiary companies or group or associated companies in India or companies promoted by assessee — Includible in disallowance — Disallowance not to exceed exempt income [ R.8D(2)(iii) ]
Lakshmi Machine Works Ltd. v. Add. CIT (2020)78 ITR 398 (Chennai ) (Trib)
S. 14A : Disallowance of expenditure – Exempt income – Sufficient interest free funds – No disallowance could be made [ R.8D ]
Darashaw And Co. Pvt. Ltd. v. Dy. CIT (2020)78 ITR 553 ( Mum) (Trib)
S. 11 : Property held for charitable purposes – Application of income – Cost of acquisition of assets allowed as application of income —Cannot claim exemption on account of repayment of loan as application of income .
A. Shama Rao Foundation v. ACIT (2020)78 ITR 374 (Bang (Trib)
S. 4 : Charge of income-tax -Capital or revenue – Real estate development – Compensation for relinquishment of right to sue societies for breach of contract capital receipt not taxable as capital gains or business income [ S. 2(24) 28(i) , 45 ]
Popular Estate Management Ltd. v. Dy. CIT (2020)78 ITR 261 ( Ahd) (Trib)
S. 4 : Charge of income-tax – Capital or revenue – Interest subsidy – Technology upgradation fund scheme- Encourage capital investment by eligible unit in form of specified machinery- The AO is directed to verify issue of utilisation of amount of subsidy. [ S.28(i), 254(1) ]
Dy. CIT v. BSL Ltd. (2020)78 ITR 348/ 183 ITD 675 (Kol) (Trib)
S. 271A : Penalty – Failure to keep maintain – Retain books of accounts –Documents – Failure to produce books of account – Levy of penalty is held to be justified .[ S.44AA, 273B ]
Sanghamitra Pattnaik (Smt.) v. ITO (2020) 79 ITR 46 (SN) / 117 taxmann.com 179( Cuttack ) (Trib)
S. 271(1)(c) : Penalty – Concealment – Penalty initiated under both limbs – Penalty levied for concealment of income – Levy of penalty is held to be not valid .
Vimalaben B. Patel ( Smt.) v. ITO (2020) 79 ITR 25 (SN) (Pune ) (Trib)