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-Prior period expenses-Payments were made when actual bills received after crystallisation of expenditure-Allowable as deduction. [S. 145]

VRL Logistics Ltd. v. ACIT (2022)95 ITR 221 (Bang)(Trib)

S. 37(1) : Business expenditure-Additional payment to avoid litigation-Deduction not claimed-Disallowance is not warranted.

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

S. 37(1) : Business expenditure-Diversion by overriding title-Matter remanded. [S. 40A(2)]

Sant Tukaram Sahakari Sakhar Karkhana Ltd. v. ITO (2022)96 ITR 72 (SN) (Pune)(Trib)

S. 37(1) : Business expenditure-Ceremony expenses-Disallowance at 30 Per Cent is held to be justified.

Sant Tukaram Sahakari Sakhar Karkhana Ltd. v. ITO (2022)96 ITR 72 (SN)(Pune) (Trib)

S. 37(1) : Business expenditure-Travelling expenses-Personal use-Disallowance of 20 Per Cent. for personal use is held to be justified.

M. D. Noorudin Zariwala v. CIT(Appeals) (2022) 96 ITR 43 (SN) (Mum) (Trib)

S. 37(1) : Business expenditure-Payment to Mosque for free lunch to Assessee’s employees-Mosque not under control of assessee-Free Lunch not provided exclusively to Labourers of assessee-Not allowable as deduction.

M. D. Noorudin Zariwala v. CIT(Appeals) (2022) 96 ITR 43 (SN) (Mum) (Trib)

S. 37(1) : Business expenditure-Subscription paid to different committees and associations in local vicinity-Allowable as deduction-Excess amount paid as written off-Matter remanded.

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

S. 37(1) : Business expenditure-Interest on debentures or compulsorily convertible debentures-Added to work in progress-Builder-Excess interest is required to be added back proportionately to total income as and when corresponding amount of work-in-progress reversed on sale of Flats/Plots [S. 145]

City Corporation Ltd. v. Dy. CIT (2022) 96 ITR 246 (Pune) (Trib)

S. 37(1) : Business expenditure-Accrued or Contingent Liability-Provision for warranty-Ad-hoc basis-Not deductible.

BGR Energy Systems Ltd. v. ACIT (2022) 96 ITR 625 (Chennai) (Trib)

S. 37(1) : Business expenditure-Capital or revenue-Expenditure on rented premises-Not allowable as revenue expenditure. [S. 32]

Dy. CIT v. Atlas Copco (India) Ltd (No.1) (2022) 96 ITR 520 (Pune)(Trib) Dy. CIT v. Atlas Copco (India) Ltd (No.2) (2022) 96 ITR 566 (Pune)(Trib)