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. 32: Depreciation — Block of assets — Sale of bottles and crates was not revenue receipts, sale proceeds to be reduced from block of assets [ S. 2(11), 43(5) ]

CIT v. Parle Soft Drinks (Bangalore Pvt. Ltd. (2018) 400 ITR 108 / 161 DTR 86 / 252 Taxman 147/ 161 DTR 86 / 300 CTR 415/ (2017) 88 Taxmann.com 24 (Bom) (HC) CIT v.Parle Bottling Pvt Ltd (2018) 400 ITR 108/ 161 DTR 86 / 252 Taxman 147 / 300 CTR 415 (Bom) (HC) Editorial ; Order in Parle Soft Drinks P. Ltd. v. JCIT ( 2013) 27 ITR 663 ( Mum) (Trib) is affirmed.Editorial: SLP of revenue is dismissed , CIT v. Parle Soft Drinks (Bangalore Pvt. Ltd. (2018) 258 Taxman 61 (SC)

S. 32 : Depreciation – Application of income as cost of assets -–Disallowance of depreciation- Amendment applies prospectively [ S. 11 (6) ]

CIT v. Institute for Development and Research in Banking Technology. (2018) 400 ITR 66/ 165 DTR 104 /302 CTR 332 (T & AP) (HC) Editorial: Institute for Development and Research in Banking Technology v. ADIT ( E ) ( 2015) 42 ITR 219 ( Hyd) (Trib) is affirmed

S.32: Depreciation- Charitable trust – Depreciation is allowable on assets whose cost of acquisition allowed as application to charitable purpose [ S. 12AA, 13(3) ]

CIT v. Shyam Lal Panwar Anandi Devi Memorial Charitable Trust. (2018) 400 ITR 393 (Raj) (HC)

S. 32: Depreciation — Unabsorbed depreciation —Effect of amendment to Section 32(2) by Finance Act, 2001 —Unabsorbed depreciation or part thereof not set off till assessment year was allowed to be set off and carry forward- Provision to be construed in its own terms , benefit or advantages not to be restricted [ S. 32(2) ]

PCIT v.British Motor Car Co. (1934) LTD (2018) 400 ITR 569/ 162 DTR 1 / 300 CTR 337(Delhi) (HC)

S. 28(iv): Business income -Benefit or perquisite –Brand ambassador- Gift of car received for doing promotional activities was held to be taxable as professional income .

Priyanka Chopra ( Ms); DCIT v.( 2018) 169 ITD 144/163 DTR 122 / 192 TTJ 343 (Mum)(Trib)

S.28(i): Business loss- Trade advances written off was held to be allowable as business loss .

ACIT v. Claridges Hotels Pvt. Ltd. (20180 61 ITR 135 (Delhi) (Trib)

S.28(i): Business loss — Fluctuation in foreign exchange rate was held to be allowable. [ S.37(i) ]

PCIT v. Samwon Precision Mould Mfg. India Pvt. Ltd. (2018) 401 ITR 486 (Delhi) (HC)

S. 28(i): Business income – Penny stock – Donation- Assessable as business income and not as short-term capital gains, deduction of donation was held to be allowable . [ S. 35,45 ]

Prem Jain (Smt) v. ITO ( 2018) 63 ITR 52 (SN)(Delhi)(Trib) , www.itatonline.org

S. 28(i) : Business income – Income from house property- License fee to operate hotel for a specified period was held to be assessable as inform from business and not as income from house property [ S. 22 ]

Palmshore Hotels (P.) Ltd. v. CIT (A)( 2018) 252 Taxman 191 (Ker.)(HC) Editorial: Order in Palmshore Hotels (P.) Ltd. v. CIT ( 2012) 28 taxmann.com 156 ( Cochin) (Trib) is reversed

S. 28(i): Business income – Capital gains- Adventure in the nature of trade – Assessable as business income [ S. 2(13), 45 , Foreign Exchange Management (Acquisition & Transfer of Immovable Property in India, Regulation 2000) S. 47 ]

V. A. Jose v. Dy. CIT (2018) 252 Taxman 386 (Ker.)(HC)