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. 43B : Deductions on actual payment-Employees’ contribution to Employees’ State Insurance and Provident Fund-Deposit after date specified in relevant statute-Before due date for filing return-Amendment by Finance Act, 2021 is not applicable for earlier years-No disallowance can be made-Precedent-Authorities bound to follow decision of jurisdictional High Court. [S. 36(1)(va), 139(1), 143(1)]

Arjun Yadav v. Dy.CIT (2022) 94 ITR 74 (SN) (Chandigarh)(Trib.) Lumino Industries Ltd. v. ACIT (2022) 94 ITR 675 / 215 TTJ 62 / 213 DTR 290 (Kol.)(Trib.) Navayug Labour Contractors Pvt. Ltd. v. ACIT (2022) 94 ITR 675 (Kol.)(Trib.) Jagannath Concreate Poles v. ACIT (2022) 94 ITR 675 (Kol.)(Trib.) Sandeep Mech. Engineers Ltd. v. ACIT (2022) 94 ITR 675 (Kol.)(Trib.) Jaimatadi Castings Pvt. Ltd. v. ACIT (2022) 94 ITR 675 (Kol.)(Trib.)

S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Merely because the liability is outstanding in the books for long period of time when there has been no supervening development nullifying the liability to pay between the parties-such liability cannot cease to exist.

Dy. CIT v. BPL Ltd. (2022) 94 ITR 66 (SN) (Bang.)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Membership and subscription charges-Not liable to deduct tax at source.

Maharani of India v. ACIT (2022)94 ITR 8 (SN) (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Payment to consolidator for right in land-Not liable to deduct tax at source-Cost with regard to AY. 2008-09 cannot be disallowed in the AY. 2013-14. [S. 37(1), 194H]

ITO v. Experion Nirman P. Ltd. (2022) 94 ITR 33 (SN) (Delhi)(Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Certificate submitted was not in prescribed form-Violation of procedural provision-Matter remanded. [S. 201(1)]

ACIT v. Silver Jubilee Motors Ltd. (2022) 94 ITR 19 (SN) (Pune) (Trib.)

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Upon failure on the part of the Assessee to provide reconciliation of expenses, its nature and TDS deductions, the alternate plea to allocate the expenses so disallowed over the STPI units of the assessee while computing the relief under section 10A was accepted.

Dell International Services India (P.) Ltd. v. JCIT (2022) 94 ITR 247 (Bang.)(Trib.)

S. 37(1) : Business expenditure-Telephone expenses-Club membership fee-Allowable as business expenditure-Entertainment Expenses-Expenses incurred on cigarettes and wines not allowable.

Maharani of India v. ACIT (2022) 94 ITR 8(SN) (Delhi)(Trib.)

S. 37(1) : Business expenditure-Fabrication charges-Books of account not rejected-Disallowance of fabrication charges is not justified. [S. 145]

Jaidka Woolen and Hosiery Mills P. Ltd. v. ITO (2022) 94 ITR 57 (SN) (Delhi)(Trib.)

S. 37(1) : Business expenditure-Educational sponsorship of son of Director-Recipient of sponsorship undertaking to serve company after completion of studies and later joining service of assessee-Entitle to deduction.

Lumino Industries Ltd. v. ACIT (2022) 94 ITR 675 / 215 TTJ 62 / 213 DTR 290 (Kol.)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue-Pre-operative interest expenses-Pending for allocation-Not debited in profit and loss account-Disallowance is not valid.

Dy. CIT v. Balaji Hotels and Enterprises Ltd. (2022) 94 ITR 24 (Trib.) (Chennai)(Trib.)