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. 68 : Cash credits-Share application money–Natural justice violated -Examining such persons in Kolkata at back of assessee would be clear violation of principles of natural justice—Matter remanded. [S. 131]
Pnn Steel (P) Ltd. v. ITO (2018) 166 DTR 217 / 193 TTJ 515 (Chennai)(Trib.)
S. 54F : Capital gains-Investment in a residential house–Property purchased in the name of wife–Loan was sanctioned in the name of wife – Not entitle to exemption. [S. 45]
Kaushal Kishore Maheshwari v. ACIT (2017) 190 TTJ 811/ ( 2018) 162 DTR 41 (Delhi) (Trib.)
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Sundry creditors were paid in subsequent year- Deletion of addition is held to be justified.
Scrabble Entertainment Ltd. v. ACIT (2018) 169 DTR 51 / 193 TTJ 418 (Mum.) (Trib.)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Sundry creditors – Produced details of court cases at Kuwait and correspondences with its overseas buyers/agents its efforts for making recovery to justify that these payments were still due from customers albeit same was produced before tribunal for first time—No justification in confirming additions.
Pyramid Consulting Engineers Pvt. Ltd. v. DCIT (2018) 195 TTJ 229/( 2019) 176 DTR 302 (Mum.)(Trib.)
S. 40(a)(ia) : Amounts not deductible-Deduction at source -Short deduction of deduction at source–No disallowance can be made. [S.194C, 194J, S. 201]
Scrabble Entertainment Ltd. v. ACIT (2018) 169 DTR 51 / 193 TTJ 418 ( Mum.)(Trib.)
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident -Marketing expenses—Payment made by assessee to foreign entities towards marketing and sale support services were not chargeable to tax in India and assessee was right in law in not deducting any tax thereon – DTAA-India –USA. [S. 195, Art .24(1)]
Onprocess Technology India Pvt. Ltd. v. DCIT ( 2018) 195 TTJ 292/ ( 2019) 179 DTR 299 (Kol.)(Trib.)
S. 37(1) : Business expenditure-Preliminary and preoperative expenses-Branch office at UAE-Existing business in UAE- Disallowance of expenditure is held to be not justified.
Scrabble Entertainment Ltd. v. ACIT (2018) 169 DTR 51 / 193 TTJ 418 (Mum.) (Trib.)
S. 37(1) : Business expenditure–Rural development expenses–Held to be allowable as business expenditure-Leave encashment scheme -Held to be allowable.
Rajasthan State Mines & Minerals Ltd. v. ACIT (2018) 196 TTJ 768/(2019) 174 DTR 383 (Jaipur)(Trib.)
S. 37(1) : Business expenditure-Expenditure incurred by assessee for providing training to persons through Apparel Training & Development Centre in form of assistance of Rs. 2,000/- per trainee was in category of corporate social responsibility (CSR) was held not allowable unless and until expenditure was incurred wholly and exclusively for purpose of business of assessee.
Rajasthan State Industrial Development & Investment Corp. Ltd. (2018) 195 TTJ 35 (Jaipur) (Trib.)
S. 37(1) : Business expenditure -Designing and exhibition of player outfits —Held to be revenue expenditure.
Knight Riders Sports P. Ltd. v. ACIT (2017) 51 CCH 591 / ( 2018) 193 TTJ 313 (Mum.)(Trib.)