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-Expenses incurred for the business cannot be disallowed by the AO on the question of commercial expediency.

ITO v. Bhagchand Jain (2022) 94 ITR 472 / 217 TTJ 202 (Jaipur)(Trib.)

S. 37(1) : Business expenditure-Supervisory fees-The AO cannot sit in the armchair of businessman and decide whether particular expenditure is required to be incurred for the business or not-Deduction is allowable in the year of payment of tax deduction at source. [S.40(a)(i)]

ACIT v. Dong Woo Surface Tech India (P.) Ltd. (2022) 94 ITR 547 (Chennai)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Investments in acquisition of shares in companies to have controlling stake-Investment for purpose of business-No disallowance of interest expenses. [S. 14A]

Gujarat Nippon Enterprises Pvt. Ltd. v. ITO (2022) 94 ITR 2 (SN) (Ahd.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Capital work-in-progress-Interest required to be capitalised-Matter remanded.

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

S. 36(1)(iii) : Interest on borrowed capital-Interest free loans to wholly-owned subsidiary-Commercial expediency-Interest on borrowed capital allowable as deduction.

Moonrock Hospitality (P.) Ltd. v. ACIT (2022) 94 ITR 185 (Delhi) (Trib.)

S. 32 : Depreciation-Ownership of asset-Car loan-Vehicle registered in name of director-Vehicle used in business-Entitle to depreciation and interest paid on car loan. [S. 37(1), Motor Vehicles Act, 1988]

Sehgal Autoriders Pvt. Ltd. v. Dy.CIT (2022) 94 ITR 11 (SN) (Pune)(Trib.)

S. 32 : Depreciation-Use of vehicle-Neither log book maintained nor any income earned during the year-Disallowance is justified-Legal expenses-No business carried on-Not allowable as deduction. [S. 37(1), 38(2)]

Jayant Maniklal Lunawat v. JCIT (2022) 94 ITR 29 (SN) (Pune)(Trib.)

S. 32 : Depreciation-Demerger-Acquisition of fixed asset-Denial of depreciation is not justified. [S. 2(19AA), 43(1)]

ACIT v. Uttaranchal Jal Vidyut Nigam Ltd. (2022) 94 ITR 435 (Delhi)(Trib.)

S. 32 : Depreciation-Assets installed and kept ready-Depreciation allowable-Assets need not be used for whole year.

ACIT v. Gopalpur Ports Ltd. (2022) 94 ITR 75 (SN) (Cuttack) (Trib.)

S. 32 : Depreciation-Goodwill-Amalgamation of companies-Depreciation on goodwill acquired to be allowed. [S. 32(1)(ii), 43(1), 43(6)]

Altimetrik India Pvt. Ltd. v. CIT (2022) 194 ITD 124 / 94 ITR 25 (SN) (Bang.)(Trib.)