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. 69 :Unexplained investments – Search and seizure – Bogus purchases – Diary -Contents of a seized document are to be read in toto, and it is not permissible on part of an AO to dissect same and therein summarily accept same in part and reject other part. [ S. 132, 292C ]
DCIT v. Kanakia Hospitality (P.) Ltd. (2019) 179 ITD 1/ (2020) 193 DTR 25/ 207 TTJ 70 (Mum) (Trib.)
S. 45 : Capital gains – Capital receipt – Professional goodwill -Business income -Compensation – Amount received against termination of right – Held to be capital receipt [ S. 2(14), 4, 28(ii(a), 55 ]
DCIT v. Dr. Sandeep Dave. (2019) 179 ITD 51 / 201 TTJ 683 / 182 DTR 109 (Raipur) (Trib)
S.37(1): Business expenditure – Capital or revenue – DTT subscription to use Deloitte- Brand helped for getting more business- Held to be allowable as business expenditure.
ACIT v. Eastern Silk Industries Ltd. (2019) 179 ITD 22/ 184 DTR 406 (Kol) (Trib.)
S.37(1): Business expenditure – Club expenses – Expenditure Club expenses incurred by directors of company cannot be denied on ground of personal in nature.
ACIT v. Eastern Silk Industries Ltd. (2019) 179 ITD 22/ 184 DTR 406 (Kol) (Trib.)
S. 35 : Scientific research – Revenue expenditure incurred on in-house research and development facility, which was duly approved by competent authority . [ S. 35(1)(iv),35(2AB) ]
ACIT v. Eastern Silk Industries Ltd. (2019) 179 ITD 22/ 184 DTR 406 (Kol) (Trib.)
S.32 : Depreciation- Trade mark – Depreciation cannot be rejected on ground that agreement to acquire trademark was entered into on post dated stamp paper. [ S.147 ,148 ]
Indus Mobile Distribution (P.) Ltd. v. ITO (2019) 179 ITD 71 (Chennai) (Trib.)
S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot exceed more than exempt income .[ R.8D ]
ACIT v. Eastern Silk Industries Ltd. (2019) 179 ITD 22/ 184 DTR 406 (Kol) (Trib.)
S. 145: Method of accounting -Project Completion Method-Percentage Completion Method- Project completion method is held to be valid- Deletion of addition in respect of advance received from customers is held to be valid . [ S.145(3) ]
ITO v. Shanti Construction (2019) 73 ITR 115/ 201 TTJ 41 (UO) (Agra)(Trib.)www.itatonline.org
S. 260A : Appeal – High Court – Condonation of delay – Reasonable Cause – Affidavit -Delay of 1754 days- No knowledge of passing of order which was stated in the affidavit- Contents of the affidavit was not disputed by the respondent – Delay was condoned – Matters are restored to the file of High Court to decide the appeals on merit in accordance with law. [ S.260A(2A) ]
Senior Bhosale Estate (HUF) v. ACIT ( 2019) 419 ITR 732/ 311 CTR 754/ 184 DTR 34 ( 2020) 269 Taxman 472 (SC), www.itatonline.org Editorial : Order of Bombay High Court is set aside and directed to decide on merit , CA No 7637 of 2008 dt 13 -02 2009 ( Nagpur Bench) Senior Bhosale Estate (HUF) v. ACIT (2019) 112 taxmann.com 133 (Bom ) (HC) Editorial: