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. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Outstanding sundry creditors shown in the books-Addition cannot be made.

G.S. Entertainment v. ACIT (2022) 220 DTR 49 / 220 TTJ 885 (Mum)(Trib)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Waiver of interest-Estimate made-No proof for waiver of interest-Deletion of addition is affirmed.

Dy.CIT v. Hyderabad Educational Institutions (P) Ltd (2022) 218 TTJ 487 (Hyd)(Trib)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Loans outstanding in the balance sheet-Addition cannot be made.

G.S. Entertainment v. ACIT (2022) 220 TTJ 885 / 220 DTR 49 (Mum)(Trib)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Capital or revenue-Assets and liabilities of subsidiary absorbed by holding company-Written off-Advance for purchase of tools-Not assessable as business income. [S. 28(iv)]

Dy.CIT v. Cooper Standard Automotive India P. Ltd. (2022) 98 ITR 59 (SN) (Chennai) (Trib)

S. 40A(9) : Expenses or payments not deductible-Bonus to employees-Employees welfare fund-Voluntary retirement Scheme-Allowable as deduction. [S. 10(10C), 37(1)]

Rane Engine Valves Ltd. v. Dy. CIT (2022) 95 ITR 5 (SN) (Chennai)(Trib)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Most of payments made on Saturday/Sunday-Payments covered u/r. 6DD-Outside the scope of section 40A(3). [R. 6DD]

Popular Foundations (P) Ltd. v. ACIT (2022) 209 DTR 18 / 215 TTJ 260 (Chennai)(Trib)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Expenditure not debited to profit and loss account-Disallowance cannot be made.

Rainbow Promoters (P.) Ltd. v. ACIT (2022) 95 ITR 232 (Delhi) (Trib)

S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Land dealing-Stock in trade-Cash payment was not claimed as expenditure-Disallowance is not justified. [R. 6DD]

Vikrant Happy Homes (P) Ltd. v. Dy. CIT (2022) 218 TTJ 1 (UO) / 138 taxmann.com 559 (Pune) (Trib)

S. 40A(3) :Expenses or payments not deductible-Cash payments exceeding prescribed limits-Agricultural produce-Payments for purchases of sugarcane-Not disallowable. [R. 6DD(e)

Dy. CIT v. Laxmipathi Balaji Sugar and Distilleries P. Ltd. (2022)100 ITR 58 (SN)(Delhi) (Trib)

S. 40A(2)(b) : Expenses or payments not deductible-Excessive or unreasonable-Remuneration of directors of Private company-Directors paying taxes at maximum rate-Disallowance of payment in excess of 20 Per Cent. of net Profit not sustainable.

Carmel Softech Pvt. Ltd. v. ITO (2022)96 ITR 34 (SN) (Chennai) (Trib)