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.45: Capital gains — Long-term capital gains —Sale of property taking place 11-4-2011 — Capital gains assessable in the year 2012-13 and not in the year 2008-09 . [ S. 2 (47 ) ]

Suresh Bansal v. Dy. CIT (2020)82 ITR 43 (SN)(Delhi) (Trib)

S. 40(a)(ia): Amount not deductible -Deduction at source – Fees for professional or technical services – Discount offered to distributors – Non -Resident – Not liable to deduct tax at source- Allowable as expenditure [ S. 9(1) (vi), 37(1) , 194J , 195 ]S. 40(a)(ia): Amount not deductible -Deduction at source – Fees for professional or technical services – Discount offered to distributors – Non -Resident – Not liable to deduct tax at source- Allowable as expenditure [ S. 9(1) (vi), 37(1) , 194J , 195 ]

Nokia India Pvt. Ltd. v. Add. CIT (2020) 82 ITR 16 ((SN)(Delhi) Trib)

S. 37(1) : Business expenditure – Mobile handsets to employees , dealers and sales personal etc ,at free of cost – Allowable as business expenditure .

Nokia India Pvt. Ltd. v. Add. CIT (2020) 82 ITR 16 ((SN)(Delhi) Trib)

S. 37(1) : Business expenditure – Distributor – Trade price protection- Commercial expediency – Allowable as deduction .

Nokia India Pvt. Ltd. v. Add. CIT (2020) 82 ITR 16 ((SN)(Delhi) Trib)

S. 37(i) : Business expenditure —Provident fund- Contribution made after expiry of due date provided under Employees’ Provident Funds and Miscellaneous Provisions Act 1952 — Not allowable as deduction

Balji Electrical Insulators P. Ltd. v Dy. CIT (2020)82 ITR 39 (SN) (Ahd) (Trib)

S. 37(1) : Business expenditure – Education Cess — Not a tax- Allowable as business expenditure .

Agrawal Coal Corporation Pvt. Ltd. v. ACIT (2020) 82 ITR 8 (Trib) (SN) (Indore) (Trib )

S. 37(1) : Business expenditure – Set up of business – Interest , administrative and other expenses is held to be allowable as deduction – Interest income is to be assessed as business income and interest expenditure to be set off against it. [ S.28(i) , 56 , 57 ]

Jindal Reality Pvt. Ltd. v. Dy. CIT (2020)82 ITR 19 (SN) (Delhi) (Trib)

S. 36(1)(iii) :Interest on borrowed capital -Inventories held as current assets —Method of accounting – Accounting Standard 2 — Interest expenses allowable as deduction .[ S.145A ]

Dy. CIT v. Thermo King India Pvt. Ltd. (2020)82 ITR 42 (SN)(Bang) (Trib)

S. 36(1)(iii) :Interest on borrowed capital – Reasonableness of expenditure has to be decided by assessee and not department – Sufficient interest-free funds- No disallowance can be made .

Balji Electrical Insulators P. Ltd. v Dy. CIT (2020)82 ITR 39 (SN) (Ahd) (Trib)

S. 14A : Disallowance of expenditure – Exempt income -Not recording the satisfaction- No disallowance can be made [ R.8D ]

WM India Technical and Consulting Services Pvt. Ltd. v. Dy. CIT (2020)82 ITR 37 (SN)(Delhi) (Trib)