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.44AB: Presumptive taxation — Construction Business — Appellate Tribunal remanding the matter-The Assessing officer not following the direction of the Appellate Tribunal – Directed the Assessing Officer to follow the direction- Availability of alternative remedy is not bar to entertaining the writ petition [ S.44AD ,144, 251(1),Art , 226 ]
Engineering Professional Co. Pvt. Ltd. v Dy CIT (2020) 424 ITR 253 /186 DTR 33/ 313 CTR 272/ 270 Taxman 242 ( Guj) (HC)
S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – Discount and rate difference- Deletion is held to be justified .
PCIT v. Western Agri Seeds Ltd. (2020) 424 ITR 244/192 DTR 142/ 316 CTR 590 (Guj)(HC)
S.37(1): Business expenditure — Capital or revenue-Expenditure on replacing machinery destroyed by fire — Expenditure on dies and tools — Allowable as revenue expenditure.
Precision Wires India Ltd. v. ACIT (2020) 424 ITR 130/ 272 Taxman 42 (Guj)(HC)
S.37(1): Business expenditure — Legal expenses —Defend its Directors and shareholders in individual capacities- Disallowance is held to be proper . [ S.260A ]
National Refinery Pvt. Ltd. v. ACIT (2020)424 ITR 267 / 272 Taxman 160(Bom)(HC)
S.37(1): Business expenditure -Capital or revenue -Acquisition of non-transferable sub-licence – Allowable as revenue expenditure.
PCIT v. Western Agri Seeds Ltd. (2020) 424 ITR 244 /192 DTR 142/ 316 CTR 590 (Guj)(HC)
S.37(1): Business expenditure — Capital or revenue -Acquisition of technical know-how -Depreciation- Allowable as revenue expenditure . [ S.32(1) ]
PCIT v. Grasim Industries Ltd. (2020) 424 ITR 236 (Bom)(HC)
S.32: Depreciation —Uninterrupted power supply system for Computers —Entitled to depreciation at 60 Per Cent.
CIT (LTU) v. Cholamandalam Ms General Insurance Co. Ltd. (2020) 424 ITR 272 (Mad)(HC)
S.28(i):Business loss —Fluctuation in rate of foreign exchange — Allowable as business loss . [ S.37(1) ]
PCIT v V. A. Tech Wabag Pvt. Ltd. (2020) 424 ITR 105 (Mad) (HC)
S. 11 : Property held for charitable purposes – Charging certain goods and services – Not commercial activities – Onus on department to prove profit motive – No change in nature of activities from earlier years – Principle of consistency is applicable- Entitle to exemption [ S.2(15) 12 , 13 80G(5)(v)]
CIT (E) v. India Habitat Centre (2020) 424 ITR 325 (Delhi)(HC)