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-Provisions made towards ‘periodic overlay expenses’-Not Contingent liability-If the same can be determined with some reasonableness-Allowable as deduction. [S. 80IA, (4)(i), 145]
GVK Jaipur Expressway (P) Ltd. v. Dy. CIT (2022) 216 TTJ 540 (Jaipur)(Trib.)
S. 37(1) : Business expenditure-Prior Period expenses-Tax deducted in the financial year-Settlement on the rent in the year under consideration-Allowable. [S. 145]
Kamla Retail Ltd. v. Add. CIT (2022) 216 TTJ 483 (Chd.)(Trib.)
S. 37(1) : Business expenditure-Business loss-Capital or revenue-Acquiring company-Investment in subsidiaries-Write off expenditure-Acquiring business-Allowable as revenue expenditure. [S. 28(i)]
Refex Industries Ltd. v. Dy. CIT (2022) 216 TTJ 633 / 212 DTR 178 (Chennai)(Trib.)
S. 37(1) : Business expenditure-Rejection of books of account-Adhoc disallowance on suspicion and conjectures, without rejecting the books of account not justified. [S. 145]
ACIT v. Mangaldeep (2022) 216 TTJ 102 / 211 DTR 7 (Surat)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Addition made by simply suspecting that the amount of interest paid in excessive-addition cannot sustain as no strong reason given by the AO-Addition is not valid.
Nikhil Garg v. ITO (2022) 95 ITR 92 /216 TTJ 33 (UO) /145 taxmann.com 171 (Jaipur)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Question of diversion of funds for non-business purposes would only come into play in case of interest free advance or loan to another company and not in case of investment in another company.
ACIT v. Rideema Toll Pvt. Ltd. (2022) 194 ITD 439/ 216 TTJ 1 / 211 DTR 1 (Mum.)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Interest paid by assessee partner to a Firm on debit balance, on account of withdrawal for tax payment-Held disallowance not justified as the end use of withdrawn funds from firm is immaterial. [S. 153A]
Late Ghansham Dass Through L/H Davinder Singh v. DCIT (2022) 216 TTJ 214 (Chad.)(Trib.)
S. 32 : Depreciation-Solar plant-Put to use-Depreciation is allowable. [S. 32(1)(ii)]
ACIT v. B.G. Channappa (2022) 64 CCH 56 / 216 TTJ 963 / 214 DTR 74 (Bang.)(Trib.)
S. 32 : Depreciation-Block of assets-Cylinder-Asset sold-Reduced from Block-Return asset-Added to the asset block. [S. 2(11), 32(1)(ii)]
Refex Industries Ltd. v. Dy. CIT (2022) 216 TTJ 633 / 212 DTR 178 (Chennai)(Trib.)
S. 28(i) : Business income-Undisclosed sources-Unaccounted stock-Declared during survey-Assessable as business income and not u/s 69A as unexplained money-Remuneration and interest paid to Partners from said excess stock disclosed as business income allowable as deduction. [S. 69A, 40(b)(iv), 133A]
ACIT v. Mangaldeep (2022) 216 TTJ 102 / 211 DTR 7 (Surat)(Trib.)