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. 36(1)(iii) : Interest on borrowed capital-Amount advanced to sister concern without charging interest-Business purpose-Held to be allowable.
CIT v. Gokaldas Images Pvt. Ltd. (2020) 429 ITR 526 / (2021) 197 DTR 225 / 318 CTR 486 / 276 Taxman 420 (Karn.)(HC)
S. 36(1)(iii) : Interest on borrowed capital Sufficient surpluses and reserves-No disallowance of interest can be made.
CIT v. Brigade Enterprises Ltd. (No. 2) (2020) 429 ITR 615 / (2021) 318 CTR 325 / 197 DTR 319/ 278 Taxman 81 (Karn.)(HC)
S. 32 : Depreciation-Hotel-Additional floor space index granted-One instalment paid and entire amount debited in accounts-Entitled to depreciation on entire amount at rate applicable to buildings. [S. 32(1)(ii), 43(6)(c)]
PCIT v. V. Hotels Ltd. (2020) 429 ITR 54 / 275 Taxman 106 / 317 CTR 377 / 194 DTR 369(Bom.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-Onus to establish such proximity on department-Assessing Officer must give a clear finding with reference to the assessee’s accounts how expenditure related to exempt income. [S. 10(35), R. 8D]
CIT v. Sociedade De Fomento Industrial Pvt. Ltd. (No. 2) (2020) 429 ITR 358 / (2021) 277 Taxman 6/ 207 DTR 381/ (2022) 324 CTR 524 (Bom.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-Failure by Assessing Officer to record dissatisfaction-No disallowance could be made. [R. 8D]
CIT v. Brigade Enterprises Ltd. (No. 2) (2020) 429 ITR 615 / (2021) 318 CTR 325 / 197 DTR 319 / 278 Taxman 81(Karn.)(HC)
S. 11 : Property held for charitable purposes-Statutory Board under control of State Government-Entitled to exemption. [S. 2(15)]
DIT(E) v. Karnataka Industrial Area Development Board (2020) 429 ITR 249 / (2021) 277 Taxman 36 (Karn.)(HC)
S. 11 : Property held for charitable purposes-Town Planning Authority Constituted Under State Law-Entitled to exemption. [S.2(15), Gujarat Town Planning Act, S. 22]
PCIT(E) v. Surat Urban Development Authority (Suda) (2020) 429 ITR 474 / 275 Taxman 295 (Guj.)(HC)
S. 11 : Property held for charitable purposes-Preservation of environment is charitable purpose-Institution engaged in management of liquid and solid wastes of industrial area-Entitled to exemption. [S. 2(15)]
CIT(E) v. Naroda Enviro Projects Ltd. (2020) 429 ITR 376 / (2021) 276 Taxman 50/ 190 DTR 228 (Guj.)(HC)