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.43B: Deductions on actual payment-Provision for leave salary-Not allowable as deduction.[S.43(f)]

Tamil Nadu Small Industries Corporation Ltd. v. ACIT (2025) 303 Taxman 129 (Mad.)(HC)

S.43B: Deductions on actual payment-Leave encashment-Liability to pay leave encashment was neither accrued nor paid during relevant accounting year but in year 2004 to 2016-Not allowable as dedcution. [S. 43B(f), 139(1), 260A]

H.P. State Civil Supplies Corporation Ltd. v. ACIT (2025) 303 Taxman 306 (HP)(HC)

S. 43B : Deductions on actual payment-liability on account of electricity duty payable-Set off against allotment of equity shares-Amount discharge of liability-No disallowance can be made. [S. 37(1), 260A]

CIT v. Haryana Vidyut Prasaran Nigam Ltd. (2025) 303 Taxman 134 (P&H)(HC)

S. 43(5) : Speculative transaction-Trade in derivatives-Recognised stock exchange-Business loss-Allowed to be set off against profits and gains of business-Order of Tribunal is affirmed. [S. 72, 73, 260A]

PCIT v. Dewa Projects (P.) Ltd. (2025) 303 Taxman 387 (Ker.)(HC)

S. 37(1) : Business expenditure-Contribution to its employees under Provident Funds-No disallowance can be made on the ground that it was not made to reccignised Provident Fund [S. 260A, Providents Funds Act, 1925]

CIT v. Haryana Vidyut Prasaran Nigam Ltd. (2025) 303 Taxman 134 (P&H)(HC)

S. 32 : Depreciation-Unabsorbed depreciation-Allowed to be carried forward and set off after a period of eight years from assessment year 1997-98, without any limit. [S.32(2)]

Tamil Nadu Small Industries Corporation Ltd. v. ACIT (2025) 303 Taxman 129 (Mad.)(HC)

S. 22 : Income from house property-Co-owner-Joint owenership-Annual letting value-No specification of their respective shares in deed-Mere signing of instrument of conveyance by an individual does not raise any presumption of income being assessed in hands of such individual-Order of Tribunal affirming the Annual letting value at 8 per cent of cost of property was deleted. [S. 23(1)(a), 26,27, 260A]

Shivani Madan (Smt) v. PCIT (2025) 303 Taxman 571 (Delhi)(HC) Editorial : Order in Shivani Madan (Smt) v. ACIT (2023) 200 ITD 198 (Delhi)(Trib), reversed.

S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Invested funds in shares of joint venture companies-Not entitle to claim exemption-Only income from such an investment made in violation of section 13(1)(d) was liable to tax and not entire income accrued to assessee.[S. 2(15),11(5) 13(1)(d)]

A.P. State Civil Supplies Corporation Ltd. v. ITO (2025) 303 Taxman 176 /343 CTR 394 / 247 DTR 106 (Telangana)(HC)

S. 11 : Property held for charitable purposes-Organic farming research-relief of poor-Eligible for exemption-Order of Tribunal is set aside. [S. 2(15) 12A, 260A, Companies Act,2013, S.8.]

Biowin Agro Research v. ITO(E) (2025) 303 Taxman 540 (Ker.)(HC) Editorial : Order of Cochin Bench in Biowin Agro Research v. ITO(E)(ITA Nos 2 and 3 of 2022 dt. 25-4-2023 is set aside.

S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Liaison Office-Non-Resident company-Did not finalize and transact a business deal and activities-Liaison Office could not be said to be preparatory or auxiliary in nature, LO did not constitute Permanent Establishment of assessee-MIPL was not performing additional function, in absence of material, it could not be taken as dependent agency PE to assessee, a non-resident company-Delay of 569 days-SLP of Revenue is dismissed on account of delay as well as on merits-DTAA-India-Japan. [art. 5, Art. 136]

CIT v. Mitsui and Co (2025) 303 Taxman 331 (SC) Editorial : CIT (IT) v. Mitsui & Co. (2025) 170 taxmann.com 827 (Delhi)(HC)