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. 37(1) : Business expenditure- capital or revenue-Interest paid on securities held as stock in trade-Allowable as revenue expenditure. [S. 28(i)]

CIT v. State Bank of Hyderabad (2023) 455 ITR 122/ 292 Taxman 38/ 331 CTR 84/ 222 DTR 345 (Telangana)(HC)/Editorial : SLP of Revenue is dismissed , CIT v. State Bank of India (2024) 297 Taxman 6 (SC)

S. 37(1) : Business expenditure-Commission-Residence – Company – Control And Management -Assessee-Companies Registered In Sikkim-Burden not discharged-Round tripping of funds-Liable to tax in India. [S. 2(35), 5, 6(3)(ii), 131, 142(1), 143(2), 148, 234A, 282]

Mansarovar Commercial (P.) Ltd. v. CIT (2023) 294 Taxman 513 (SC) Editorial : Mansarovar Commercial (P.) Ltd. v. CIT (2023) 453 ITR 661/ 293 Taxman 312 (SC).

S. 36(1)(iii) : Interest on borrowed capital-Interest free advances to partners-Commercial Expendiency-Assessee was not required to demonstrate commercial expediency in each year-Order of Tribunal is affirmed. [S. 37(1)]

PCIT v. N.S. Software (2023) 294 Taxman 403 (Delhi)(HC)

S. 36(1)(iii) : Interest on borrowed capital-, Entire interest expenses had to be allowed in toto under section 36(1)(iii) as well as under section 37(1) as being for purpose of business-Order of Tribunal allowing the interest is affirmed. [S. 37(1) 260A]

PCIT v. Urban Infrastructure Holding (P.) Ltd. (2023) 294 Taxman 496 (Bom.)(HC)

S. 32 : Depreciation-Plant-Oil wells constitute plant-Eligible for depreciation.

CIT (IT&TP) v. Joshi Technologies International Inc. (2023) 153 taxmann.com 710 (Guj)(HC) Editorial : SLP of Revenue is dismissed, CIT (IT&TP) v. Joshi Technologies International Inc. (2023) 459 ITR 146 / 294 Taxman 706 (SC)

S. 32 : Depreciation-Actual cost-Block of assets-Subsidy from State Government-Incentive to establish an industrial unit in the backward area-Employment generation-Capital receipt-No adjustment is warranted to reduce form the cost of acquisition. [S.2(11), 4, 43(1)]

PCIT v. Nestle India Ltd (2023) 457 ITR 216 / 294 Taxman 397 (Delhi) (HC)

S. 32 : Depreciation – Rate of depreciation – Computer accessories and peripherals – Entitle to depreciation at 60 percent.

PCIT v Nestle India Ltd. (No. 2) (2023)457 ITR 216 /294 Taxman 397 (Delhi)(HC)

S. 32 : Depreciation-Revaluation-Actual cost – Taken over assets and liabilities of the firm-Actual cost of assets will be actual cost which assessee paid to predecessor after revaluing assets-Entitled to claim depreciation for subsequent years on basis of actual cost paid. [S. 43(1), Proviso ,260AR. 5]

PCIT v. Dharmanandan Diamonds (P.) Ltd. (2023) 294 Taxman 29 /(2024)467 ITR 26 (Bom.)(HC)/Editorial :SLP of Revenue is dismissed , PCIT v. Dharmanandan Diamonds Pvt. Ltd. (2024)467 ITR 31/ 64 300 Taxman 95 (SC)

S. 28(i) : Business loss-Penny stock-Share trading-Information from investigation wing-VAS Infrastructure Ltd (VASIL)-Not black listed by SEBI-Order of Tribunal allowing the loss is affirmed. [S. 10(38), 45, 260A]

PCIT v. Genuine Finance P. Ltd. (2023) 294 Taxman 303/(2024) 462 ITR 492 (Guj.)(HC)

S. 28(i) : Business loss-Penny stock-Share trading-Information from investigation wing-VAS Infrastacture Ltd. (VASIL)-Not black listed by SEBI-Order of Tribunal allowing the loss is affirmed. [S. 10(38), 45, 260A]

PCIT v. Genuine Finance P. Ltd. (2023) 294 Taxman 303 (Guj.)(HC)