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.36(1)(vii) :Bad debt – Mere write off is sufficient and it is not necessary to establish that debt had become irrecoverable.

CIT v. Vishal Transformers And Switchgears Pvt. Ltd. (2018) 405 ITR 266 (All) (HC)

S.36(1)(iii): Interest on borrowed capital —Capital can be used for acquisition of capital asset —Premature redemption of premium notes — Liability for interest is not contingent —Interest is deductible.

Nirma Ltd v. ACIT (2018) 405 ITR 277 (Guj) (HC)

S. 36(1)(iii) :Interest on borrowed capital – 15% rate of interest was paid on borrowed capital – Allowable as deduction on principle of commercial expediency .[ S.37(1) ]

CIT v. Shree Benzophen Industries Ltd. (2018) 405 ITR 185 (Guj) (HC) Editorial: SLP of revenue is dismissed ; CIT v. Shree Benzophen Industries Ltd. (2018) 401 ITR 170 (St)

S. 36(1)(iii) :Interest on borrowed capital -Amount borrowed utilised for purchase of capital assets — Interest is deductible .

CIT v. Kanoria Sugar And General Manufacturing Co. Ltd. (2018) 407 ITR 737 (Raj) (HC) Editorial: SLP of revenue is dismissed; CIT v. Kanoria Sugar And General Manufacturing Co. Ltd. (2018) 405 ITR 1 ( St)

S. 35 : Scientific research – Weighted deduction —Date of approval is not relevant — Application for approval in December 2006 and approval was granted in October 2008 — Entitle to weighted deduction.[ S.35(2AB) ]

Banco Products (India) Ltd. v. DCIT (2018) 405 ITR 318/ 258 Taxman 244 (Guj) (HC)

S. 32: Depreciation -Plant and machinery put to use in April 1992 — Depreciation is not allowable for the assessment Year.

CIT v. Malayala Manorama Co. Ltd. (2018) 405 ITR 249/171 DTR 254 (Ker) (HC)

S. 17 : Perquisite – Salary-Employees deputed abroad — Extra payment to meet costs constitute perquisites- Liable to deduct tax at source . [ S.15,17(2), 192 ]

Sun Outsourcing Solutions P. Ltd. v. CIT (2018) 407 ITR 480/ 171 DTR 358/ 305 CTR 537 (T&AP) (HC)

S. 17 : Perquisite – Salary-Employees deputed abroad — Extra payment to meet costs constitute perquisites- Liable to deduct tax at source . [ S.15,17(2), 192 ]

Sun Outsourcing Solutions P. Ltd. v. CIT (2018) 407 ITR 480/ 171 DTR 358/ 305 CTR 537 (T&AP) (HC)

S. 14A : Disallowance of expenditure – Exempt income -Tribunal remanding the issue of interest expenses and deleting other expenses-– Order of Tribunal is up held – No question of law [S. 254(1) , 260A, R.8D ]

CIT v. Ultra Tech Cement Ltd. (2018) 407 ITR 500 (Bom) (HC) Editorial: SLP of revenue is dismissed; CIT v. Ultra Tech Cement Ltd. (2018) 406 ITR 12 ( St)

S. 10A : Free trade zone – Depreciation and other deductions –
-Neither any deduction claimed by assessee for Assessment Years prior to amendment nor exemption granted — Ten years’ relief allowed by later amendment in 2003 —Interpretation- Legislative intent – The intent of the Legislature while it made those amendments was not to curtail the relief to an assessee, who had not availed of double benefit- Matter remanded to Appellate Tribunal for reconsideration. [ S.10A(6) ]

Phoenix Lamps Ltd. v. CIT( 2017) 87 taxmann.com 353 / (2018) 405 ITR 189 (All) (HC)Editorial: SLP of revenue is dismissed as the Tribunal has passed the final order after the remand CIT v. Phoenix Lamps Ltd ( 2019) 263 Taxman 338 (SC)