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 – Commission paid to the foreign agents for having worked on behalf of the Assessee in procuring sales is held to be allowable- Business Loss – No colourable device employed by Assessee in the process sale of shares at low price- Loss is held to be allowable .[ S.28(i) ]

PCIT v .Navin Fluorine International Ltd. (Bom)(HC)(UR) Editorial: SLP of revenue is dismissed (SLP No.19379 of 2019 dt.13/08/2019) (2019) 417 ITR 55 (St.)(SC)

S.37(1) : Business expenditure – Capital or revenue – Bank NRI mobilisation expenditure – Amount paid to vacating the premises – Held to be allowable

CIT v. Hongkong and Shanghai Banking Corporation Ltd (2020) 114 taxmann.com 275 (Bom.)(HC) Editorial: SLP of revenue is dismissed (SLP (C )No.19466 of 2019dt )(2019) 418 ITR 9 (St) (SC)/ (2020) 114 taxmann.com 276 (SC)

S.32: Depreciation –Special foundation of windmill – 80% depreciation allowed on Civil Construction, electrical and other non-integral part of installations as against 15% restricted by the AO .

PCIT v. Mahalaxmi Infra Projects Ltd (Bom) (HC) www.itatonline.org.

S.28(i) :Business loss – Business expenditure — Obsolescence allowance — Write of off obsolete stock – Allowable as business loss .[ S. 37(1) 145A]

CIT v. Gigabyte Technology (India) Ltd. (2020) 421 ITR 21 /195 DTR 334/ 273 Taxman 184 (Bom)(HC)

S. 28(i): Income from business – Income from house property – Exploitation of property commercially by way of complex commercial activities – Rental income is to be taxable as income from business – Not as Income from House Property. [S.22]

PCIT v. City Centre Mall Nashik Pvt. Ltd( 2020) 424 ITR 85 /121 taxmann.com 87 (Bom)(HC)

S.28(i): Business income- Client code modification-(CCM )- Shifting of profits- Addition as income on the basis of alleged doubtful transaction is held to be not valid – Deletion of addition b the Tribunal is affirmed. [S.69, 143(3)]

PCIT v. Pat Commodity Service Pvt. Ltd. (Bom.)(HC), www.itatonline.org

S. 14A: Disallowance of expenditure – Exempt income -Disallowance cannot exceed assessee’s exempt income. [R.8D]

Nirved Traders Pvt. Ltd. (2020) 421 ITR 142 (Bom) (HC)

S. 14A: Disallowance of expenditure – Exempt income – Disallowance cannot exceed exempt income earned — Tribunal restricting disallowance to extent offered by assessee is held to be proper. [R.8D]

CIT v. HSBC Invest Direct (India) Ltd. (2020) 421 ITR 125 (Bom) (HC)

S. 14A : Disallowance of expenditure – Exempt income – In the absence of any exempt income, disallowance is not permissible. [ R.8D]

PCIT v Dish TV India Ltd (Bom) (HC) (UR ).

S. 14A : Disallowance of expenditure – Exempt income – Rule 8D is not applicable to assessments prior to AY. 2008 -09 [R.8D]

PCIT v. Bank of India ( Bom) (HC) (UR)