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-Provision for warranty-Depreciation on intellectual property. [S. 32, 145(2), 260A]

PCIT v. Landis GYR(2023) 454 ITR 462 (Cal)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Contingent-Ascertained expenditure-Premium payment on redemption of shares which has been quantified-Allowable as revenue expenditure-Duty of Tribunal to give finding based on facts. [S. 254(1)]

Nitesh Housing Developers Pvt. Ltd. v. Dy. CIT (2023)454 ITR 770 (Karn)(HC)

S. 37(1) : Business expenditure-Business loss-Unexplained investments-Search-Unaccounted silver-Penalty or confiscation-Loss on account of confiscation-Not allowable as business loss. [S. 28(i), 37(1), Expln. 69A, 115BBE]

CIT v. Prakash Chand Lunia (Decd. Through Lrs) and Another (2023)454 ITR 61/ 293 Taxman 229 / 332 CTR 261/ 225 DTR 57 (SC) Editorial : Order of Jaipur Bench of Rajasthan High court, reversed, IT v. Prakash Chand Lunia (Decd. Through Lrs) And Another (Raj(HC) (ITA No. 96 of 2003 & ITR NO. 6 OF 1996 DT. 22-11-2016)

S. 37(1) : Business expenditure-Lease of assets-Lease rent assessed as business income in the assessment of lessor-lease rent should be allowed as deduction-Revenue cannot contend that the assessee is the owner. [S. 32, Art. 132]

CIT v. Narmada Chematur Petrochemicals Ltd. (2023)454 ITR 584 / 292 Taxman 2 (SC) Editorial : CIT v. Narmada Chematur Petrochemicals Ltd (Guj)(HC)(ITA No. 1037 of 2013 dt. 28-1-2014)

S. 37(1) : Business expenditure-Final difference in rate paid at end of accounting year-Allowable as deduction. [S. 145]

CIT (Central) v. Kolhapur Zilla Sahkari Dudh Utpadak Sangh Ltd. (2023)454 ITR 434/ 293 Taxman 603 /334 CTR 218 (SC) Editorial: Affirmed, CIT (Central) v. Kolhapur Zilla Sahkari Dudh Utpadak Sangh Ltd (2009) 315 ITR 304 (Bom)(HC)

S. 37(1) : Business expenditure-Capital or revenue-Expenditure on replacement of remembraning in membrane cell plant-No material to show membrane itself could be treated as separate and independent machine-Revenue expenditure.

CIT v. Gujarat Alkalies and Chemicals Ltd. (2023)454 ITR 808 (SC) Editorial: CIT v. Gujarat Alkalies and Chemicals Ltd (2015) 372 ITR 237 (Guj)(HC), affirmed. CIT v. Indian Petrochemicals Corporation Ltd (2017) 10 ITR-OL 275 (Guj)(HC), affirmed.

S. 36(1)(vii) :Bad debt-Amounts written off-Agreements with sister concern for take over and assignment of certain book debts-Order of tribunal allowing the bad debt is affirmed.[S. 36(2), 260A]

CIT v. Elgi Equipments Ltd. (2023)454 ITR 11 (Mad)(HC) Editorial: SLP of revenue dismissed, CIT v. Elgi Equipments Ltd. (2023)454 ITR 14 (SC)

S. 36(1)(vii) : Bad debt-Money lending business-Debts taken over from sister concern-Allowed as deduction-SLP of Revenue dismissed. [S. 36(2), Art, 136]

CIT v. Elgi Equipments Ltd. (2023)454 ITR 14/ 293 Taxman 504 (SC) Editorial: CIT v. Elgi Equipments Ltd. (2023)454 ITR 11 / 151 taxmann.com 427 (Mad)(HC), affirmed.

S. 32 : Depreciation-Revised return-Withdrawing claim to depreciation-Assessing Officer granting depreciation under amended provisions-Held to be not permissible. [S. 32(1), Expln.5]

ACIT v. G. E. Lighting (I) P. Ltd (2023)454 ITR 285/ 293 Taxman 435/ 333 CTR 129/ 227 DTR 73 (SC) CIT v. Southern Petro-Chemical Industries (2023)454 ITR 285/ 293 Taxman 435/ 333 CTR 129/ 227 DTR 73 (SC) Editorial: Decision of Gujarat High Court and Madras High Court, affirmed. CIT v. G. E. Lighting (I) P. Ltd (Guj)(HC) (ITA No. 325 of 2009 dt.8-3-2010, CIT v. Southern Petro-Chemical Industries (Mad)(HC) (TA No. 442 of 2005 dt.25-4-2012)

S. 28(i) : Business loss-Shortage of coal-Deletion of addition is affirmed. [S. 260A]

PCIT v. Durgapur Projects Ltd. (2023)454 ITR 367/ 333 CTR 158/ 227 DTR 35 (Cal)(HC)