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. 35AC: Expenditure on eligible projects or schemes-Donations-Had valid approval at the time of payment-Information from Investigation wing-No evidence that donation was bogus or returned cash-Subsequent withdrawal of approval or cancellation of registration under section 12AA(3) could not justify disallowance of deduction under section 35AC of the Act. [S.12AA(3), 35AC(6), 131, 132, 143(3),147, 148]
Raman and Weil (P.) Ltd. v. DCIT (2025) 215 ITD 514 (Mum) (Trib.)
S. 35 : Expenditure on scientific research-Business expenditure on in-house R&D facility-Claimed weighted deducted-AO denied as Form 3CL was missing-Held, post amendment, Form 3CL is a requisite for claiming deduction under S. 35(2AB)-Not entitled to deduction. [S.35(2AB]
Ashok Leyland Ltd. v. ACIT (2025) 234 TTJ 372/ 172 taxmann.com 42 (Chennai)(Trib)
S. 35: Expenditure on scientific research-Entitled to claim deduction under S. 35(2AB) even in respect of expenditure incurred prior to approval date, i.e. from 1-4-2019.[S.35(2AB]
Kaisha Lifesciences P. Ltd. v. Dy. CIT (2025) 123 ITR 589/ 172 taxmann.com 48 (Mum)(Trib.)
S. 35: Expenditure on scientific research-Business expenditure-Withdrew higher claim-Entitled to 100% deduction of revenue expenses under section 35(1)(i) and depreciation on R&D assets under section 32(1).[S. 32(1), 35(1)(i), 35(2AB), 43(4), Form 3CL]
Malwa Oxygen & Industrial Gases (P.) Ltd. v. ITO NFAC, Delhi (2025) 215 ITD 503 (Indore)(Trib.)
S. 35: Expenditure on scientific research-Approval was granted by DSIR during the previous year-Entitled to claim weighted deduction in respect of entire expenditure incurred under section 35(2AB)[S.35(2AB)]
DCIT v. Anand NVH Products (P.) Ltd. (2025) 215 ITD 98 (Delhi) (Trib.)
S. 32: Depreciation-Goodwill-Slump sale-Tangible Assets-Entitled to claim depreciation. [S. 2(42C),32(1)(ii) 50B]
DCIT v. Glaxosmithkline Consumer (P.) Ltd. (2025] 215 ITD 423 (Chd) (Trib.)
S. 32: Depreciation-Amalgamation-Goodwill-Excess of consideration over net assets-Depreciation on goodwill allowable.
Bakeri Projects (P.) Ltd. v. DCIT (2025) 215 ITD 289 (Ahd) (Trib.)
S.32: Depreciation-Amalgamation-Depreciation on goodwill-Matter was remanded to the file of CIT(A) for consideration afresh.[S. 32(1)]
Dynaspede Integrated Systems (P.) Ltd. v. DCIT (2025) 215 ITD 17 (Chennai) (Trib.)
S. 28(v): Business income-Partner-Interest, salary, bonus, remuneration-Chartered accountant-Depreciation-Business expenditure-Any expenditure incurred wholly and exclusively for earning such income, including depreciation, is allowable under sections 32 and 37 [S. 32, 37(1)]
Atul Kumar Gupta. v. ITO (2025) 215 ITD 472 (SMC) (Delhi) (Trib.)
S.28(i) : Business income-Accrual-Real income theory-Royalty-Mere deduction of TDS does not conclusively establish accrual of royalty income where ultimate collection is uncertain-Revenue recognition can be postponed under AS-9 where collectability is doubtful-Addition of royalty as undisclosed professional income deleted-However, amount of TDS claimed as credit deemed as income under section 198 and taxable-Relief restricted to royalty amount minus TDS claimed.[S. 5, 145, 198, 199, R. 37BA]
Weir Mineral (India) Pvt. Ltd. v. DCIT [2025] 175 taxmann.com 407 (Delhi)(Trib), www.itatonline.org.