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 — Real estate development — Selling and administrative costs — Selling expenses – Revenue expenses after setting up of business is held to be allowable although revenue was not yet earned —Accounting Standard 7 .
Pragnya Crest Properties Pvt. Ltd. v. Dy. CIT (2020) 78 ITR 43 (SN)(Bang) (Trib)
S. 37(1) : Business expenditure -Payment to contractors benevolent Fund —Allowable subject to verification -Penalty- Delayed contract – Assessing Officer is directed to verify nature of default . 37(1) Explanation ]
Pampamaheshwar Ravindranath v. ACIT (2020) 78 ITR 68 (SN) ( Bang) (Trib)
S.37(1): Business expenditure — Labour charges — Road construction business -Some labour contractors not having complete knowledge of contract and looked after by their husbands — Disallowance is not justified .
Dwarkesh Infrastructure P. Ltd. Dy. CIT (2020) 78 ITR 33 (SN) ( Ahd) (Trib)
S. 37(1) : Business expenditure – Salaries to employees- Allowable as deduction – Explanation I is not applicable .
AddCIT v. National Research Development Corporation (2020) 78 ITR 56 (SN) ( Delhi) (Trib)
S.37(1) : Business expenditure -Capital or revenue – Leasehold premises — Nature of expenditure to be examined before applying provision relating to ownership of asset [ S.32(1), Expln. 1. ]
Century Link Technologies India Pvt. Ltd. v Dy. CIT (2020) 78 ITR 71 (SN) ( Bang) (Trib)
S.32: Depreciation — Cost of construction of office block — High Court admitting the appeal of earlier year- Not entitle to depreciation following earlier year .[ S.254(1), 260A ]
Avm Productions v .ACIT (2020) 78 ITR 42 (SN) ( Chennai) (Trib)
S.28(i): Business income – Interest income –Fixed deposit – Rule of consistency – Directed to be assessed as business income .[ S.56 ]
Trans Freight Containers Ltd. v. Dy. CIT (2020) 78 ITR 5 (SN) (Mum) (Trib)
S. 28(i) : Business income – Remission or cessation of trading liability -Introduction of Gold Bars in to business – Nether assessable as business income or cessation of liability [ S.41(1) ]
Deepak Garg v. ITO (2020) 78 ITR 40 (SN) (Delhi ) (Trib)
S. 24 : Income from house property – Deductions – Interest on borrowed capital — Part of self-owned house property let to unmarried son and daughter —No evidence that arrangement not genuine — Loss on account of interest to be adjusted against rental income —Interest on entire property not allowable as rental income part of house property. [ S.24(1)(b) ]
Md. Hussain Habib Pathan v. Asst. CIT (2020) 78 ITR 63(SN))/ ( 2021) 186 ITD 373 (Mum) (Trib)
S. 15 : Salaries – Director- Assessable on accrual basis and not on receipt basis — Salary shown in form 26 AS filed by company alone to be taxed — Assessing Officer is directed to examine factual aspect [Companies Act, 1956, Schedule XIII ]
Dy. CIT v .Villoo Zareer Morawala Patel (Smt.) (2020) 78 ITR 17 (SN) (Bang) (Trib))