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. 44 : Insurance business -Bonus declared for policy holders, it became a part of ascertained liability and, thus, same could not be treated as a part of actuarial surplus being liable to tax .

Max New York Life Insurance Co. Ltd. v. Dy.CIT (2018) 191 TTJ 897 / 171 DTR 209(Delhi)(Trib.)

S. 44: Insurance business – The profit disclosed in the shareholder’s profit and loss account (Form A-PL) is the profit derived from life Insurance business for computing the insurance business income and also on the principle of consistency . [ S.115JB ]

Max New York Life Insurance Co. Ltd. v. Dy.CIT (2018) 191 TTJ 897/ 171 DTR 209 (Delhi)(Trib.)

S.43B: Deductions on actual payment- Payment of Leave encashment made before due date of filling of return of income is allowable as deduction .[ S.139(1) ]

Dy. CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol)(Trib.)

S.40(a)(ia):Amounts not deductible – Deduction at source – payment to purchase of raw materials is not liable to deduct tax at source .[ S.194C ]

Eshan Minerals (P) Ltd. v. Dy. CIT (2018) 161 DTR 369 / 191 TTJ 753 (Pune)(Trib.)

S. 37(1): Business expenditure – Capital or revenue – Debenture whether convertible or non convertible are in nature of loan at the time of issuance therefore expenditure incurred are allowable as business expenditure.

Dy. CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol)(Trib.)

S. 32: Depreciation—Toll bridge –BOT basis- Intangible asset, depreciation is allowable .

Godavari Toll Bridge (P) Ltd. v. ACIT (2018) 163 DTR 17 / 191 TTJ 568 (Visakha)(Trib.)

S.28(i) : Business loss – Advance made to parties for purchase of goods, consumables which are written off in the books is held to be allowable as business loss.

Dy. CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol.)(Trib.)

S.28(i) : Business loss – Government deposits written off is held to be allowable as business loss .[ S.37 (i)]

Dy. CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol.)(Trib.)

S.28(i) : Business loss – Retention money – Advances to the companies which are in nature of irrevocable which are written off in the books is allowable as business loss.

Dy.CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol.)(Trib.)

S.28(i) : Business loss -Advance to purchase of land- loss incurred on account of irrevocable advance paid for purchase of land for construction of office is held to be allowable as business loss .

Dy.CIT v. Mcnally Bharat Engineering Co. Ltd. (2018) 191 TTJ 822 (Kol.)(Trib.)