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-Scientific research-The direction of the State Government for payment of contribution came just before the end of the financial year, entire expenditure is allowable on accrual basis-Claim cannot be disallowed under S. 35(1)(ii) as assessee did not claim weighted deduction. [S. 35(1) (ii)]

CIT. v. Tamilnadu State Transport Corporation (Madurai) Ltd. (2019) 179 DTR 161 (Mad)(HC)

S. 36(1)(vii) : Bad debt–Provisions for bad and doubtful debts-Reduced from advance account in the balance sheet allowable as deduction to the extent of write off. [S. 36(1)(viia)]

City Union Bank Ltd. v. ACIT (2019) 74 ITR 644 (Chennai)(Trib. )

S. 36(1)(iii) : Interest on borrowed capital-Borrowings were utilized for purpose of construction business-No disallowances can be made.

Shree Laxmi Estate (P. ) Ltd. v. ITO (2019) 178 ITD 98/(2020) 204 TTJ 351 (Mum.)(Trib.)

S. 35D : Amortisation of preliminary expenses–Deduction granted earlier years – Deduction to be allowed for balance period.

Dy. CIT v. Sahara Care Ltd. (2019) 74 ITR 117 (Delhi)(Trib.)

S. 32 : Depreciation-Goodwill–Intangible Asset–Amalgamation–Matter remanded to CIT(A)]

Dy. CIT v. Macmillan Publishers India P. Ltd. (2019) 71 ITR 8 (SN) (Chennai)(Trib. )

S. 32 : Depreciation—Written down value—Valuation report-AO to decide allowable depreciation after considering valuation report submitted for earlier assessment years.

Dy. CIT v. Kanishk Metal Recycling Ltd. (2019) 74 ITR 8 (SN) (Chennai)(Trib. )

S. 32 : Depreciation–Business and commercial rights-Goodwill–Intangible Asset-Entitle for depreciation.

Dy. CIT v. Landmark Cars (East) P. Ltd. (2019) 71 ITR 19 (SN) (Ahd.)(Trib.)

S. 32 : Depreciation–LED Panel–Rate of depreciation is allowable as applicable to computer. [Information technology Act, 2000, S. 2(1)]

Dy. CIT v. Kumudam Publications P. Ltd. (2019) 70 ITR 41 (SN) (Chennai)(Trib. )

S. 32 : Depreciation-POS TERMINALS are in the nature of computers – Entitle to depreciation at 60%. [S. 2(11), 2(13)]

Dy. CIT v. Oxigen Services India P. Ltd. (2019) 69 ITR 63 (SN) (Delhi)(Trib. )

S. 32 : Depreciation-No turnover during the year-Depreciation cannot be disallowed.

Dy. CIT v. Jammu Metalic Oxides Pvt. Ltd. (2019) 72 ITR 449 (Jaipur) (Trib. )