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 – Referral fees – Hospital, paid referral fee to doctors for referring their patients to assessee’s hospital- Regulations of Indian Medical Council was not applicable to pharmaceutical company or allied health sector industries- Entitled to deduction
Peerless Hospitex Hospital & Research Centre Ltd. v. DCIT (2020) 181 ITD 446/ 196 DTR 57/ 207 TTJ 300 (Kol) (Trib.)
S.37(1): Business expenditure -Trade Price Protection (TPP) extended to distributors for reduction in prices of products having been incurred wholly and exclusively for business, would be allowable as revenue expenditure
Nokia India (P.) Ltd. v. DCIT (2020) 181 ITD 645 /114 taxmann.com 442 (Delhi) (Trib.)
S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Schedule bank -Not debited to profit and loss account – Rejection of claim is held to be justified .
JCIT v. Karnataka Vikas Grameena Bank. (2020) 181 ITD 672 / 79 ITR 207 (Bang) (Trib.)
S. 35AD: Deduction in respect of expenditure on specified business-Hotels- Section per se does not require any specific date of operation- Denial of exemption is held to be not valid .
Benares Hotels Ltd. v. DCIT (2020) 181 ITD 486 (Varanasi) (Trib)
S. 23 : Income from house property – Annual value -Remained vacant throughout relevant year -No addition can be made on account of notional rent . [ S.22 ]
Empire Capital (P.) Ltd. v. ACIT (2020) 181 ITD 173 (Mum) (Trib.)
S. 15 : Salaries – Business income – Commission – Commission from employer is liable to be taxed as business income – TDS was deducted as salary – Matter remanded to the AO to verify the expenses incurred for earning of commission income . [ S.28 (i)]
Jalendra Sahoo v. ITO (2019) 76 ITR 337 / 202 TTJ 1 (UO)/( 2020) 181 ITD 581 (Cuttack) (Trib.)
S. 14A : Disallowance of expenditure – Exempt income – Maintaining separate books of account – Matter remanded to CIT (A) [ R.8D ]
Vinita Devi Bagrodia. v. DCIT (2020) 181 ITD 355 (Indore) (Trib.)
S. 12AA : Procedure for registration –Trust or institution- Charitable purpose -Profit motive – Providing asylum/shelter to cows and maintaining gaushalas and famine relief centres to provide proper treatment and fodder to needy stray cows- Cancellation of registration is held to be not valid [ S.2(15) 11, 12A ]
Rajasthan Gau Seva Sangh. v. CIT (2020) 181 ITD 660 (Jaipur) (Trib.)
S. 11 : Property held for charitable purposes – Investment of surplus fund in chit fund – Denial of exemption is held to be justified [ S. 2(15) ,11(5) ]
ACIT v. Sree Gokulam Educational and Medical Trust. (2020)181 ITD 572 (Chennai) (Trib.)
S. 11 : Property held for charitable purposes – Cancellation of registration was set aside by the Appellate Tribunal- Denial of exemption was set aside .[ S.12A ]
Amateur Riders Club v. ADIT (2020) 181 ITD 401 (Mum) (Trib)