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. 80IA :Industrial undertakings – Infrastructure development- Telecommunications Services —Change in shareholding- Losses which have lapsed cannot be taken into account for purposes of computation of deduction .[ S.72(b) , 79 80IA(4) ,80IA(5) (2) ]

Vodafone Essar Gujarat Ltd. v. ACIT (2020) 424 ITR 498/191 DTR 288 / 315 CTR 778/ 275 Taxman 432(Guj)(HC). Editorial: Affirmed , ACIT v. Vodafone Essar Gujarat Ltd. (2023)453 ITR 755 (SC)

S. 80IA :Industrial undertakings – Infrastructure development – Sewage system-Contract with local bodies for development of infrastructure facility -Entitle to deduction [ S.80IA(4) ]

PCIT v V. A. Tech Wabag Pvt. Ltd. (2020) 424 ITR 105 (Mad) (HC)

S. 44BB : Mineral oils – Computation – Non-resident – Royalty and fees for technical services – Matter remanded to the file of Commissioner (Appeals)- Interpretation of taxing statutes — Strict interpretation.- when there are two provisions in an enactment which cannot be reconciled with each other, the doctrine of harmonious construction should be applied and attempt should be to interpret the provisions, if possible, giving effect to both- DTAA -India -Australia [ S.44DA , 115A, Art , 12 ]

Paradigm Geophysical Pvt Ltd. v. CIT (IT) (2020)424 ITR 521 / 115 taxmann.com 254/ 189 DTR 260/ 315 CTR 522 (Delhi)(HC)

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. 43A : Rate of exchange – Foreign currency – Business loss- Rate of Exchange of foreign currency – loss on settlement of forward contract – Held to be allowable .

CIT v. Jsw Steel Ltd (2020) 424 ITR 227/ 275 Taxman 587 (Karn)(HC), Editorial: Notice issued in SLP filed by the revenue , CIT v. JSW Steel Ltd ( 2021 ) 282 Taxman 300 (SC))/ .SLP dismissed , CIT v. JSW Steel Ltd ( 2022) 284 Taxman 277 (SC)

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)