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 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Commission-Procurement of orders overseas-No disallowance can be made for failure to deduct tax at source.[S. 5,9(1)(vii),195]

Bhartiya International Ltd. v. Dy. CIT (2024)112 ITR 207 /227 TTJ 897 / 158 taxmann.com 239 / 38 NYPTTJ 18 (Delhi)(Trib)

S. 37(1):Business expenditure-Diversion of income by overriding title-Payment made to sister concerns not out of its own discretion but made due to obligation arising out of agreement-Claim revenue neutral because assessee claimed sum as business expenditure and recipients of that sum had offered it, in aggregate, as income-Adding it in hands of assessee would be double addition-Expenditure allowable. [S. 4]

Dy. CIT v. Ramprastha Properties P. Ltd. (2024)112 ITR 74 (SN)(Delhi)(Trib)

S.37(1): Business expenditure-Employees’ Stock Option Scheme Expenses-Disallowance is deleted.

City Union Bank Ltd. v. Dy. CIT (2024)112 ITR 337 /229 TTJ 139 (Chennai)(Trib)

S.37(1): Business expenditure-Corporate Social Responsibility expenses-Disallowance is justified-Qualified Institutional placement expenses-Matter remanded. [Companies Act, 2013, S.135]

City Union Bank Ltd. v. Dy. CIT (2024)112 ITR 337 /229 TTJ 139 (Chennai)(Trib)

S.37(1): Business expenditure-Employees stock option plan compensation expenses-Allowable as deduction.

Bhartiya International Ltd. v. Dy. CIT (2024)112 ITR 207 /227 TTJ 897 / 158 taxmann.com 239 / 38 NYPTTJ 18 (Delhi)(Trib)

S.37(1): Business expenditure-Prior-period expenses-Annual technical service fees-Addition is not justified-Employees Stock option plan-Matter remanded to the file of the Assessing Officer.
[S. 145]

Axis Bank Ltd. v. Asst. CIT (2024)112 ITR 28 (Ahd)(Trib)

S. 36(1)(vii) :Bad debt-Provision for bad debts-Bad debts written Off-Bad debts written off relating to non-rural advances is not required to be adjusted against provision for bad and doubtful debts allowed under Section 36(1)(viia)-Excess provision matter remanded. [S.36(1)viia)]

City Union Bank Ltd. v. Dy. CIT (2024)112 ITR 337 /229 TTJ 139 (Chennai)(Trib)

S. 32 : Depreciation-A Non-Banking Finance Company-Investments-Different method of accounting-Securities as per Reserve Bank of India norms-Disallowance of depreciation is deleted-Automated teller machine-Akin To Computer and computer software-Depreciation allowable at 60 Per Cent. [S. 145]

City Union Bank Ltd. v.Dy. CIT (2024)112 ITR 337 /229 TTJ 139 (Chennai)(Trib)

S. 28(i) : Business loss-Shortage and excess of stocks on physical verification of inventory-Ordinary loss in case of a manufacturer-Allowable as deduction. [S. 37(1)]

ACIT v. NRB Bearings Ltd. (2024)112 ITR 17 (SN)(Mum) (Trib)

S. 23 : Income from house property-Annual value-Higher rent and lower security deposit-Matter remanded to Assessing Officer to determine annual lettable value and after giving an opportunity to assessee. [S. 22]

ACIT v. NRB Bearings Ltd. (2024)112 ITR 17 (SN) (Mum.)(Trib.)