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-Expense towards community and social welfare activities-Expense allowable.

Sasamusa Sugar Works Pvt. Ltd. v. Dy. CIT (2022)98 ITR 235 (Kol) (Trib)

S. 37(1) : Business expenditure-Payment for site development rights-Payment not genuine-Parties not having expertise-Report of expert backdated-Bogus expenditure-Disallowance justified.

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

S. 37(1) : Business expenditure-Employer’s benefit, repairs and maintenance, Other expenses, commission etc-CIT(A) restricting benefits of employees and legal and professional fees by 5%-Disallowance of 10% repairs and commission and discount-Disallowance reasonable-Deletion of disallowance on manufacturing expenses-Order of CIT(A) is affirmed.

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

S. 37(1) : Business expenditure-Liquidated damages for delay-Liability supported by MOU-Allowable-Interest on loan taken by party paid by assessee-Interest not allowable.

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

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-Schedule bank-Mere provision of bad and doubtful debts when the same is made on an ad hoc basis will not constitute a write-off to claim deduction.

Tamil Nadu Generation and Distribution Corporation Ltd. v. ACIT (2022) 217 TTJ 108/ 213 DTR 313 (Chennai) (Trib)

S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts-No deduction is allowable on mere provision on gross basis-Bad debts should be actually written off in books of account-Matter remanded.

Triumph International (India) Pvt. Ltd. v. ACIT (2022)100 ITR 33 (SN)(Chennai) (Trib)

S. 36(1)(vii) :Bad debt-Unit sold as slump sale-Past advances written off relating to sold unit-Not allowable as deduction.

Dy. CIT v. Kanoria Chemicals & Industries Ltd. (2022) 215 TTJ 1003 (Kol)(Trib)

S. 36(1)(iii) : Interest on borrowed capital-Real estate developer-Interest paid on overdraft-Closing stock and working progress-Disallowance was deleted-Loan to subsidiaries-Recovered the interest paid on overdraft-Deletion of interest is affirmed.

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

S. 36(1)(iii) :Interest on borrowed capital-Sufficient funds-Investment in shares-Disallowance is not justified-Matter remanded.

ACIT v. Nahar Industrial Enterprises Ltd. (2022) 219 DTR 73 / 219 TTJ 544 / 99 ITR 562 (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. 36(1)(iii) : Interest on borrowed capital-Amount advanced to sister concern-Interest recovered-Disallowance of interest is not justified.

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