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. 43(5) : Speculative transaction-Transactions in derivatives and share trading-Loss not from speculative business-Set-Off to be allowed. [S. 72]

Umesh Chandra Gupta v. Dy. CIT (2021) 90 ITR 79 (Agra)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Filing certificate before the Tribunal certificate of Chartered Accountant stating that recipient had filled return including the amount received-Matter remanded for verification. [S. 194A, 201(1)]

Munivenkatappa Shivanna v. ACIT (2021) 90 ITR 60 (SN) (Bang.)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Acquisition of software-Treated as capital expenditure-Failure to deduct tax at source-No disallowance can be made.

UKN Properties Pvt. Ltd. v. Dy.CIT (2021)90 ITR 1 (Bang.)(Trib.)

S. 40(a)(i) : Amounts not deductible-Deduction at source-Purchase of computer-Not royalty-Not liable to deduct tax at source. [S. 9(1))(vi), 195]

Progress Software Solutions India P. Ltd. v. Dy. CIT (2021) 90 ITR 70 (SN) / 214 TTJ 1 (SMC) (Mum.)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Repair and renovation of leased premises-Allowable as revenue expenditure-Ex-gratia payment-Matter remanded. [ S. 43B]

Karnataka Soaps and Detergents Ltd. v. ACIT (LTU) (2021) 90 ITR 85 (SN) (Bang.)(Trib.)

S. 37(1) : Business expenditure-Computer expense-Ad hoc basis-Without pointing out any defects, ad hoc disallowance was held to be not justified.

C. S. Datamation Research Services Pvt. Ltd. v. ITO (2021) 90 ITR 2 (SN.) (Delhi)(Trib.)

S. 37(1) : Business expenditure-Upfront fee-Term loan for acquiring fixed asset-Interest on loan taken on equipment-Allowable as revenue expenditure.

Brace Iron and Steel Pvt. Ltd. v. Add. CIT (2021) 90 ITR 582 (Delhi)(Trib.)

S. 36(1)(vii) : Bad debt-Co-Operative Bank-Fixed deposit with another Bank-Liquidation-Amount written off-Allowable as bad debt.

ACIT v. Himatnagar Nagrik Sahkari Bank Ltd. (2021) 90 ITR 64 (SN) (Ahd.)(Trib.)

S. 36(1)(va) : Any sum received from employees-Cheque deposited before due date-Cheque cleared after due date-Relevant date is date of deposit of cheque-Allowable deduction.

Pearey Lal and Sons (E. P.) Pvt. Ltd. v. ACIT (2021) 90 ITR 96 (SN) (Delhi)(Trib)

S. 35 : Scientific research expenditure-Research and development facility was approved by the DSIR-Entitle to weighted deduction. [S. 35(2AB)]

Nirmal Industrial Control P. Ltd. v. ACIT (2021) 90 ITR 34 (SN) (Mum.)(Trib.)