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. 80IB(10) : Housing projects- Completion certificate is not obtained for certain flats —Not entitled to deduction in respect of those flats — Development plan road acquired by Municipal Corporation not be reduced from total land area of project.

Dy. CIT v .Shewale and Sons (2020) 79 ITR 310 /184 ITD 899 / 196 DTR 17/ 208 TTJ 901 (Pune) (Trib)

S. 69C : Unexplained expenditure -Bogus purchases – Sales not doubted – Quantitative tally of purchases of meat and exports furnished – Addition is held to be not justified .

Dy. CIT v. Hind Industries Ltd. (2020)79 ITR 1/ (2021 ) 186 ITD 272 (Delhi) (Trib)

S. 68 : Cash credits – Share premium — Identity and creditworthiness of share holders and genuineness transaction is not doubted – Merely for not furnishing the valuation report -Addition is held to be not justified .

Dy.CIT v. International Land and Developers P. Ltd. (2020) 79 ITR 441 ( Delhi) (Trib)

S. 49 : Capital gains – Previous owner – Cost of acquisition –Financial asset – Period of holding -Brand name – Transfer of intangible assets with right to carry on business – Holding period should be determined including period of holding of previous owner, ie. Amalgamating Company-No transfer taking place on appointed date of Amalgamation — Period of holding more than 36 months — Receipt taxable as long-term capital gains [ S. 2(11) ,2(42A) , 45, 49 (1), 55(2)(a)(ii) ]

ACIT v. Feroke Boards Ltd. (2020) 79 ITR 22/207 TTJ 106 185 ITD 910/ 194 DTR 264 (Cochin) (Trib)

S. 37(1) : Business expenditure -Capital or revenue – One time lease rental charges for 90 years – One-Ninetieth of amount paid allowable as revenue expenses and balance to be treated as pre paid advance rent .

ACIT v. Niit Technologies Ltd. (2020)79 ITR 60 ( Delhi) (Trib)

S.37(1): Business expenditure -Capital or revenue – Expenditure on setting up of new outlets an expansion of existing business — Expenditure on salary and conveyance allowable as revenue in nature.

Dy. CIT v. Coffee Day Global Ltd. (2020) 79 ITR 322 (Bang) (Trib)

S.37(1): Business Expenditure — Interest for delayed payment of pole rental charges- liability crystallised during the year -Not prior period expenses but compensatory in nature — Allowable as deduction . [ S.145 ]

Dy. CIT v. Asianet Satellite Communications Ltd. (2020) 79 ITR 695 (Cochin) (Trib)

S. 36(1)(iii) :Interest on borrowed capital – Intercorporate deposit to subsidiary – Strategic purposes and not for earning dividend – Interest is allowable as deduction – Common interest expenditure to be apportioned on basis of cost of financing and not on basis of turn over- Business income – Shipping business – Tonnage income not form part of normal business Income . [ S.37(1), 115VE ]

Essar Shipping Ltd. v. ACIT (2020) 79 ITR 555 (Mum) (Trib)

S.36(1)(iii: Interest on borrowed capital — Till asset for which loan borrowed is put to use, interest not allowable [ S.37(1) ]

Dy. CIT v. Coffee Day Global Ltd. (2020) 79 ITR 322 (Bang) (Trib)

S. 35DD : Amortisation of expenditure – Amalgamation – Demerger –
Expenses allowable in hands of parent company and not resultant company [ S.37(1) ]

ACIT v. Niit Technologies Ltd. (2020)79 ITR 60 ( Delhi) (Trib)