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
Click here to download the pdf versions of the Digest of case laws

S. 40(a)(ia) : Amounts not deductible – Deduction at source – Short deduction – Precedent -Deducted the tax applying the provision of S.194C @2% instead of 194J @ 10%- No disallowances can be made.
[ S.194C, 194J ]

ACIT v. Dish TV India Ltd. (2018) 194 TTJ 897/ 169 DTR 253 (Mum)(Trib.)

S. 37(1) : Business expenditure- Provision for fall in the value of investment held as stock-in-trade by bank is allowable as a deduction.

ACIT v. Karnataka Bank Ltd. (2018) 63 ITR 433 (Bang)(Trib.)

S. 37 (1) : Business expenditure-Provision for standard asset being required only to meet the unexpected eventuality is purely contingent in nature and hence is not allowable as a deduction.

ACIT v. Guntur District Co-operative Bank Ltd (2018) 66 ITR 61 (SN) (Vishakha) (Trib.)

S. 37(1) : Business expenditure –Actual payments made to Group Gratuity Scheme are allowable as deduction even though the same is not approved by the CIT. [S. 36(1)(v)]

ACIT v. Guntur District Co-operative Bank Ltd (2018) 66 ITR 61 (SN) (Vishakha) (Trib.)

S. 36(1)(iii) : Interest on borrowed capital – Where capital was borrowed for acquisition of fixed assets and only a part of assets were put to use, then interest was to be allowed only to the extent the assets were operational during the current year

ACIT v. Pasadensa Foods Ltd. (2018) 163 DTR 243 /192 TTJ 645 (Delhi)(Trib.)

S. 32 : Depreciation-Set-off of Unabsorbed depreciation – Any unabsorbed depreciation available on 01.04.2002 i.e AY 2002-03 would be carried forward as per amended provisions of 32(2) of the Act without any time limit. [ S.32(2)]

ACIT v. Panchmahal Steel Ltd. (2018) 64 ITR 49 (Ahd.)(Trib)

S. 28(i) : Business income- Income from house property-Income from letting out of premises/developed space along with other amenities in industrial park/SEZ is to be charged under head profits and gains of business. [S. 22]

ACIT v. Grew Industries Pvt. Ltd. (2018) 66 ITR 116 (Mum)(Trib.)

S. 14A : Disallowance of expenditure – Exempt income –Disallowances can be made only where the AO recorded his satisfaction as to how the claim of the Assessee that no expenditure was incurred to earn exempt income is incorrect. [R. 8D]

ACIT v. Karnataka Bank Ltd.(2018) 63 ITR 433 (Bang)(Trib.)

S. 14A : Disallowance of expenditure – Exempt income –Provision would not apply where no exempt income was received or receivable during relevant previous year by assessee. [R. 8D ]

ACIT v. Dish TV India Ltd. (2018) 194 TTJ 897/ 169 DTR 253 (Mum)(Trib.)

S. 5 : Scope of total income -Accrual- Interest on Government securities which has become due and payable alone can be considered as accrued and taxable. [S. 28(i), 145]

ACIT v. Karnataka Bank Ltd.(2018) 63 ITR 433 (Bang.)(Trib.)