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. 68 : Cash credits -Identity of creditor established – Need not explain the source of the source – Addition confirmed by the Tribunal is deleted .

Gaurav Triyugi Singh v ITO (2020) 423 ITR 531/ 188 DTR 128/ 315 CTR 748( Bom) (HC)www.itatonline.org

S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Remission of loan by Government of Maharashtra cannot be assessed u/s 28(iv) or 41(1) of the Act – Order of Tribunal is affirmed [ S.28(iv ) ]

PCIT v SICOM Ltd (2020) 274 Taxman 58 ( Bom) (HC)

S. 37(1) : Business expenditure – Business loss- Write off of losses towards stock obsolescence in respect of Laptops and motherboards -Held to be allowable as revenue expenditure [ S.28(i), 145A ]

CIT v Gigabyte Technology (India) Ltd (2020) 421 ITR 21/ 195 DTR 334/ 273 Taxman 184 ( Bom ) (HC)

S. 37(1) : Business expenditure – Capital or revenue – Payment to for the purpose of having continuous supply of limestone as a raw material – Held to be capital expenditure – Order of Tribunal directing for the payment to be amortised for a period of 8 years is held to be not valid – Question is answered in favour of the revenue . [ S.145 ]

CIT v . Zuari Industries Ltd ( 2020) 420 ITR 323/ 185 DTR 281/ 312 CTR 416 // 115 taxmann.com 337 (( Bom) (HC)

S. 36(1)(iii) :Interest on borrowed capital – Allowable as deduction though capitalised in the books of account .[ S. 43(1)Ex.8 ,145 ]

CIT v . Zuari Industries Ltd ( 2020) 420 ITR 323 / 185 DTR 281/ 312 CTR 416/ 115 taxmann.com 337 ( Bom) (HC)

S.28(i): Income from business – Income from house property – Exploitation of property commercially by way of complex commercial activities – Rental income is to be taxable as income from business – Not as Income from House Property. [ S.22 ]

PCIT v. City Centre Mall Nashik Pvt. Ltd ( 2020) 424 ITR 85/ 121 taxmann.com 87 ( Bom) (HC)

S. 14A : Disallowance of expenditure – Exempt income – Rule 8D is not applicable to assessments prior to AY. 2008 -09 [ R.8D ]

PCIT v. Bank of India ( Bom) (HC) (UR)

S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income declared during the year no disallowance can be made .[ R.8D(2) (ii) ]

PCIT v .Morgan Stanley India Securities P Ltd ( Bom) (HC) (UR)

S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income declared during the year no disallowance can be made .[ R.8D(2) (ii) ]

PCIT v Khoinoor Project Pvt Ltd ( 2020) 425 ITR 700 / (2021) 276 Taxman 180 ( Bom) (HC)

S. 12A : Registration –Trust or institution- Amount collected by the assessee as donation from the students was within the permissible limit of 15% – Denial of exemption is held to be not valid [ S.11, 12AA(3), 13(1)(d) ]

PCIT v Shikshan Prasarak Mandali ( Bom) (HC) (UR)