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. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Commission claimed as expenditure – Write off of loan- cannot be treated as revenue receipts .
PCIT v .Rajasthan Co-Operative Dairy Federation Ltd. (2020)423 ITR 89 (Raj) (HC)
S.37(1): Business expenditure — Advertisement expenses – Failure to prove the genuineness of expenses – Disallowance is held to be justified
Fiitjee Ltd. v PCIT (2020) 423 ITR 354 / 271 Taxman 177 (Delhi)(HC)
S.37(1) : Business expenditure — Termination of lease and licence – Deletion of expenditure is held to be justified .
PCIT v. Lee and Muirhead Pvt. Ltd. (2020)423 ITR 167 (Bom) (HC)
S.37(1) : Business expenditure — Capital or revenue- Preliminary expenditure incurred for submission of tender in another Port —Allowable as revenue expenditure .
CIT v .South India Corporation Ltd. (2020)423 ITR 158 (Ker)(HC)
S.37(1) : Business expenditure — Capital or revenue – Replacement of damaged parts of existing machinery — Revenue expenditure .
PCIT v. Gujarat Narmada Valley Fertilizer and Chemicals Ltd. (2020) 423 ITR 54 / 192 DTR 233(Guj) (HC )
S.37(1) : Business expenditure — Capital or revenue Computer software expenses — Legal expenses incurred in connection with sale of capital assets – Held to be revenue expenditure .
PCIT v. Aker Powergas Pvt. Ltd. (2020)423 ITR 536 (Bom)(HC)
S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts – Co-Operative Bank — Deduction for 10 Per Cent. of aggregate advances of Rural Branches – Not allowable .
Ernakulam District Co-Operative Bank Ltd. v CIT (2020) 423 ITR 308 (Ker)(HC)
S.36(1)(vii): Bad Debts —Lottery and financing business- Advance of money- Amounts written off in accounts — Held to be allowable . [ S.36 (1), 36(2) ]
Deccan Agency v. Dy CIT (2020) 423 ITR 418 (Mad) (HC)
S.36(1)(vii) ; Bad debts- Part of current assets – Allowable as bad debt .
PCIT v. Lee and Muirhead Pvt. Ltd. (2020)423 ITR 167 (Bom) (HC)