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. 54B : Capital gains-Land used for agricultural purposes- Sale of land to builder- Order of the AO is set aside. [S. 45, 264, Art. 226]

S. Sundaramurthy v. PCIT (2020) 269 Taxman 107 (Mad.)(HC)

S. 45 : Capital gains-Transfer-Permission to builder to start advertising, selling, construction on land-Licence to builder not amounting to possession of asset-Memorandum of compromise in 2003 under which agreement confirmed, and receipt by assessee of part of agreed sale consideration confirmed-Gains arose in previous year in which memorandum of compromise entered into, and taxable in that assessment year. [S. 2(47)(v), 2(47)(vi), Transfer of Property Act, 1882, S.53A]

Seshasayee Steels P. Ltd. v. ACIT (2020) 421 ITR 46 / 313 CTR 375/ 187 DTR 241/ 275 Taxman 187(SC) Editorial : Decision in Seshasayee Steels P. Ltd. v Asst. CIT ( 2020) 421 ITR 46 (Mad) (HC) affirmed. Tax Case (Al) No. 461 of 2011 dt 25 -1 2012)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Interest liability of State Government undertaking on Government Loans converted by order of State Government into equity share capital-No cessation of liability-Addition cannot be made.

CIT v. Metropolitan Transport Corporation (Chennai) Ltd. (2020) 421 ITR 307/ 196 DTR 455/ 317 CTR 968 (Mad.)(HC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payee reflected the said amount as it tax liability-No disallowance can be made.

PCIT v. Shivaai Industries (P.) Ltd. (2020) 269 Taxman 54/ (2024) 470 ITR 564 (Delhi) (HC) Editorial : SLP is granted to the revenue; PCIT v. Shivaai Industries (P.) Ltd. (2020) 269 Taxman 53 (SC)/Editorial : PCIT v. Shivaai Industries (P.) Ltd. (2024) 297 Taxman 372 /470 ITR 566 (SC)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest paid to resident-Second proviso to S.40(a)(ia) is applicable-No disallowance can be made.

PCIT v. Noida Software Technology Park Ltd. (2020) 113 taxmann.com 144 / 269 Taxman 11 (Delhi)(HC) Editorial : SLP of revenue is admitted, PCIT v. Noida Software Technology Park Ltd. (2020) 269 Taxman 10 (SC)

S. 37(1) : Business expenditure-Marketing and publicity expenses-Expenditure by way of marketing and publicity expenses for promoting its regional channels ‘Star Pravaha’ and ‘Star Maza’-Held to be allowable as business expenditure.

PCIT v. Star Entertainment Media (P.) Ltd. (2020) 269 Taxman 66 (Bom.)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Expenditure incurred on fertility improvement amongst milk animals-Held to be allowable as revenue expenditure.

PCIT v. Gujarat Co. Op. Milk Marketing Federation Ltd. (2020) 113 Taxmann.com 84 / 269 Taxman 42 (Guj.)(HC) Editorial : SLP of revenue is dismissed; PCIT v. Gujarat Co. Op. Milk Marketing Federation Ltd. (2020) 269 Taxman 41 (SC)

S. 37(1) : Business expenditure-Additional evidence of lorry expenses for first time before CIT(A)-Considering the remand report Tribunal confirmed the addition-Miscellaneous application was dismissed-High court remanded the matter to AO for readjudication. [S. 254(2), 260A]

Dilip Kumar v. ACIT (2020) 269 Taxman 93 / 196 DTR 199(Mad.)(HC)

S. 32 : Depreciation-Goodwill-Entitle to depreciation-No question of law. [S.260A]

PCIT v. Zydus Wellness Ltd. (2019) 112 taxmann.com 400 / (2020) 269 Taxman 58 (Guj.)(HC) Editorial : Following the order in SMIPS Securities Ltd ( 2012) 13 SCC 488, SLP of revenue is dismissed, PCIT v. Zydus Wellness Ltd. (2020) 269 Taxman 57 (SC)

S. 28(i) : Business loss-Business expenditure-Obsolescence allowance-Write of off obsolete stock-Allowable as business loss. [S. 37(1), 145A]

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