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–Capital or revenue–Proportionate rent and lease premium-Held to be revenue expenditure.

Balmer lawrie & Co. Ltd. v. CIT (2019) 310 CTR 724 / 181 DTR 401 (Cal.)(HC)

S. 37(1) : Business expenditure–Capital or revenue–Foreign currency convertible Bond-(FCCB) issuing expenses–Held to be allowable as revenue expenses.

PCIT v. Reliance Natural Resources Ltd. (2019) 267 Taxman 644 (Bom.)(HC)/Editorial : SLP of Revenue dismissed , PCIT v. Reliance Natural Resources Ltd. (2022) 286 Taxman 435 (SC)

S. 37(1) : Business expenditure–Raising loan-Capital or revenue-Expenses for issuing Foreign Convertible Bond only on interpretation of DTAA-Question of law. [S. 260A]

PCIT v Reliance Natural Resources Ltd. (2019) 267 Taxman 644 (Bom.)(HC)/Editorial : SLP of Revenue dismissed , PCIT v. Reliance Natural Resources Ltd. (2022) 286 Taxman 435 (SC)

S. 37(1) : Business expenditure-Joint Venture with State Industrial Corporation-Subsequent winding up of joint venture company — Amount paid as guarantor under the Scheme of BIFR is held to be allowable as deduction.

CIT v. Apollo Tyres Ltd. (2019)419 ITR 100 /(2020) 274 Taxman 258 (Ker.)(HC)

S. 37(1) : Business expenditure–Deferred expenditure-No concept of deferred revenue expenditure–Expenditure is allowable as deduction.

PCIT v. Manugraph India (P) Ltd ( 2019) 267 Taxman 437 (Bom.)(HC)

S. 36(1)(iii) : Interest on borrowed capital–Interest and finance charges-loans taken for investment in acquiring controlling interest in a foreign subsidiary which is in same line of business-Allowable as expenditure. [S. 37(1)]

PCIT v. Concentrix Services (I) (P.) Ltd. (2019) 267 Taxman 625 (Bom.)(HC)

S. 36(1)(iia) : Weighted deduction–Salary paid to blind or physically handicapped persons–Computation-Salary to be taken after allowance of standard deduction. [S. 16]

Pieco Electronics & Electricals Ltd. v. CIT (2019) 267 Taxman 548 /(2020) 187 DTR 19/ 313 CTR 243(Cal.)(HC)

S. 32 : Depreciation-Moulds – Depreciation at 30 % or 10%-Glass manufacturing concern-Matter remanded to the Tribunal. [S.254(1)]

Pieco Electronics & Electricals Ltd. v. CIT (2019) 267 Taxman 548 /(2020) 187 DTR 19/ 313 CTR 243(Cal.)(HC)

S. 32 : Depreciation-Entitled to depreciation in respect of assets which were discarded or scrapped during previous year-Not necessary that such assets were actually sold during year.

Pieco Electronics & Electricals Ltd. v. CIT (2019) 267 Taxman 548/(2020) 187 DTR 19/ 313 CTR 243 (Cal.)(HC)

S. 32 : Depreciation-Unabsorbed depreciation-Carry forward and Set off-Entitle to set off carried forward unabsorbed depreciation against income assessed u/s. 68 of the Act-Prior to Amendment of S.115BBE with effect from 1-4-2017-Amendment is not retrospective. [S. 68 115BBE]

Vijaya Hospitality and Resorts Ltd. v. CIT (2019) 419 ITR 322 / 180 DTR 305 (Ker.)(HC)