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-No evidence that sum paid before due date of filing of return-Disallowance justified-Remand to Assessing Officer to examine whether actual payment made or not-Service tax paid under protest-Cannot be allowed. [S. 37(1)]

Dy. CIT v. Wind World India Ltd. (2022) 98 ITR 22 (Mum.)(Trib)

S. 43B : Deductions on actual payment-Employee’s contributions (EPF/ESIC)-Deposited beyond due date stipulated in respective Acts-Disallowance is justified. [S. 2(24), 36(1)(va), 139(1), 143(1)(a)]

Cemetile Industries. v. ITO 2022) 220 DTR 265 / 220 TTJ 801 / (2023) 198 ITD 322 (Pune) (Trib.) Late Dhannang Shankar Ganesh v. Dy.CIT (2022) 220 DTR 313 / 220 TTJ 813 (Chennai)(Trib)

S. 43B : Deductions on actual payment-Employee’s contributions (EPF/ESIC)-Any sum received from employees-Deduction on actual payments-Amount paid before filing of return of income-Amendment applicable to AY. 2021 and later-Not applicable to earlier years. [S. 36(1)(v)]

Suman Solanki v Dy. CIT, CPC/ ITO (2022)98 ITR 97 (Jaipur) (Trib)

S. 43(5) : Speculative transaction-Raising funds through foreign currency convertible bonds for manufacturing-Entering into hedging transaction to cover expected loss from fluctuation of foreign currency-Commercial expediency-Transaction incidental to business-Loss allowable. [S. 37(1)]

Oswal Woollen Mills Ltd. v. Add. CIT (2022)98 ITR 521 (Chd) (Trib)

S. 43(5) : Speculative transaction-Derivative trading-Manufacturing of yarn-Forex derivative transactions through its bankers to hedge its foreign currency risk-Not speculative-Allowable as business loss. [S. 28(i), 37(i).]

ACIT v. Nahar Industrial Enterprises Ltd. (2022) 219 DTR 73 / 219 TTJ 544 / 99 ITR 562 / 142 taxmann.com 52 (Chd)(Trib) ACIT v. Nahar Spinning Mills Ltd (2022) 219 DTR 73 / 219 TTJ 544 / 99 ITR 562 / 142 taxmann.com 52 (Chd)(Trib) ACIT v. Oswal Woollen Mills Ltd. (2022) 219 DTR 73 / 219 TTJ 544 /99 ITR 562 / 142 taxmann.com 52 (Chd)(Trib)

S. 43(1): Actual cost-Subsidy for industrialization of backward state-Capital Nature-Not to be reduced from the asset cost. [Expln. 10].

Jindal Steel and Power Ltd v. Add. CIT (2022)97 ITR 516 (Delhi) (Trib)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Provision for gratuity and leave encashment written back-Expenses not allowed in earlier year-Amount write back cannot be taxed.

Welkin Telecom Infra (P.) Ltd. v. Dy. CIT (2022) 96 ITR 475 (Kol) (Trib)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Amounts shown as sundry creditors-Deletion of addition is justified. [S. 37(1)]

ITO v. Mohinder Pal Singla (2022) 97 ITR 587 (Chd.)(Trib)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Transhipment charges-Outstanding for three years-Offered to tax in 2011-12-Justified in deleting. [S. 145]

ACIT v. United Shippers Ltd. (2022) 97 ITR 94 (Mum) (Trib)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Outstanding liability-Addition is not justified.

ACIT v. Milroc Good Earth Property & Development LLP (2022) 217 TTJ 52 (UO)/ 142 taxmann.com 149 (Panaji)(Trib)