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 –Bank- Provision for interest on over due deposits being ascertained liabilities which is crystallised during the relevant previous year is held to be allowable as deduction [ S.145 ]

Oriental Bank of Commerce v. Addl. CIT (2018) 162 DTR 257 /254 Taxman 197 (Delhi)(HC)

S. 11 : Property held for charitable purposes – Application of income -Wrirte back of depreciation was allowed to be carried forward for application of income of subsequent years [ S.32 ]

Lissie Medical Institutions v. CIT (2018) 161 DTR 73/300 CTR 130 (SC)

S. 37(1): Business expenditure – Expenditure incurred fpr acqudsition of application software which was subsequently abandoned would be allowable in year of write off as revenue expenditure [S.145 ]

Maruti Udyog Ltd v. CIT (2018) 406 ITR 562 / 253 Taxman 60/161 DTR 1 (Delhi) (HC )

S. 32A:Investment allowance- Development rebate -Transfer of asset within 8 years to the retiring partner , denial of benefit of investment allowance/development rebate was justified.[ S.2(47),34(3),35A ,155(4A)]

Jupiter Radios (Regd.) v. Dy. CIT (2017) 88 Taxmann.com 93 / ( 2018) 163 DTR 233 (Delhi)( HC)

S. 14A: Disallowance of expenditure – Exempt income – Assessing Officer cannot attribute administrative expenses for earning tax free income in excess of total administrative expenditure.[R.8D ]

PCIT v. Adani Agro (P) Ltd. (2018) 253 Taxman 507 (Guj.)(HC)

S. 14A : Disallowance of expenditure – Exempt income -Net interest- Prior to its amendment with effect from 2-6-2016 , amount of expenditure by way of interest would be interest paid by assessee on borrowings minus taxable interest earned during financial year [ R.8D ]
Dismissing the appeal of the revenue , the Court held that ; Prior to its amendment with effect from 2-6-2016 , amount of expenditure by way of interest would be interest paid by assessee on borrowings minus taxable interest earned during financial year . (AY. 2008-09)
Nirma Credit & Capital (P.) Ltd (2017) 85 taxmann.com 72 / ( 2018) 300 CTR 286 (Guj HC)

PCIT v. Nirma Credit & Capital (P.) Ltd (2017) 85 taxmann.com 72 / ( 2018) 300 CTR 286/161 DTR 333 (Guj )HC)

S.147: Reassessment – After the expiry of four years – Undisclosed investment – Valuation of shares – All facts were disclosed in the original return- Reassessment notice for valuing the shares at Rs. 35 as per Govt valuer’s report as against the purchase value of Rs. 10 per share, though the value as per rule 11U was less than Rs. 5 per share .Reassessment proceeding is stayed by passing interim relief in terms of prayer clause (d) of the Act .[S. 56(2)(vii),69B, 148, R.11UA ]

Sharukh Khan v. CIT ( 2018) 253 Taxman 487/ 163 DTR 378/ 302 CTR 62 ( Bom) (HC)

S. 4 : Charge of income-tax -Accrual- Contractor- Income in respect of sale of flats is accrued when possession was given of the flat and not when the allotment letter was issued [ S.145]

CIT v. Millennium Estate Pvt Ltd ( Bom) (HC) ( 2018) 93 taxmann. com 41/BCAJ -April-P.74

S.271(1)(c ) : Penalty -Concealment -Non specification of limb in notice levy of penalty is held to be bad in law .

Dy. CIT v. Sujata Bharadwaj (Smt.) (2018) 191 TTJ 17 (Jodh.)(UO)(Trib.)

S. 153A : Assessment – Search -No incriminating materials found during the search and original assessment having been completed ,addition cannot be made . [ S. 132 ]

Garuda Imaging & Diagnostics (P) Ltd. v. ACIT (2018) 191 TTJ 765 (Delhi)(Trib.) ACIT v. Sindhu Holding Ltd v. ACIT (2018) 191 TTJ 765 (Delhi)(Trib.)