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. 35 : Scientific research expenditure-Allocation of expenses-Research and development expenses on future products-Allocation of expenses is not justified. [S.80IA, 80 IB, 80IC]
Macleods Pharmaceuticals Ltd. v. Dy. CIT (2022) 217 TTJ 763/ 214 DTR 105 (Mum)(Trib)
S. 35 : Scientific research expenditure-Weighted deduction-Approved in-house research and development facility-Restriction of allowance to expenses approved by Department of Scientific and Industrial Research (DSIR)-Not justified. [S. 35(2AB]
Eicher Motors Ltd. v. JCIT (2022) 98 ITR 84 (SN) (Delhi)(Trib.)
S. 35 : Scientific research expenditure-Withdrawal of approval granted to institution-Approval valid at the time of donation-Entitled to deduction.[S. 35(1)(ii)]
ACIT v. Praveen Sushil Kanda (2022)98 ITR 345 (Raipur) (Trib)
S. 32 : Depreciation-Accessories entitled to higher rate of depreciation at 60 Per Cent.
Expeditors International (India) Pvt. Ltd. v. Dy. CIT (2022)95 ITR 393 (Delhi) (Trib)
S. 32 : Depreciation-Personal use-No log book maintained-Disallowance of 20 percent for personal use is held to be proper. [S. 38(2)]
Sanjay Subhashchand Gupta v. ACIT (2022) 95 ITR 89 (SN)(Mum) (Trib)
S. 32 : Depreciation-Cost of construction and Land-Special Economic Zone-Perpetual Sub-lease for 95 years renewable for further 95 years-Nominal yearly ground rental of Re. 1-Stamp duty rate of proportionate Land during period of acquisition 35 Per Cent-Depreciation is allowable on balance consideration.
Mohit Diamonds Pvt. Ltd. v. Dy. CIT (2022)96 ITR 12 (SN)(Mum) (Trib)
S. 32 : Depreciation-Foreign exchange loss-Loss disallowed as capital expenditure-Directed the Assessing Officer to pass consequential order allowing the depreciation.
Ul India Pvt. Ltd. v. Dy. CIT (2022)96 ITR 191 (Bang)(Trib)
S. 32 : Depreciation-Unabsorbed depreciation-Set-off-Disallowance was deleted. [S. 32(2)]
Adm Agro Industries Latur and Vizag Pvt. Ltd. v. Dy. CIT (2022) 96 ITR 450 (Delhi)(Trib)
S. 32 : Depreciation-Option to claim depreciation-Opting not to claim depreciation at rates specified in Appendix 1a-Eligible to claim depreciation according to Rule 5(1) and not Rule (5a)-The Assessing Officer is directed to allow W.D.V of depreciation. [R. 5(1), (1a), Appex. 1,IA]
Jindal Steel and Power Ltd. v. Add. CIT (2022) 97 ITR 516 (Delhi) (Trib)
S. 32: Depreciation-Block of asset-Depreciation is allowable irrespective whether asset is used or not.[S. 2(11)]
Dy. CIT v. Jagson International Ltd. (2022) 97 ITR 176 (Delhi) (Trib)