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-Donation of amount to BDC for construction of ring road-Allowable as business expenditure.

PCIT v. Mysore Minerals Ltd. (2022) 143 taxmann.com 219 (Karn.)(HC) Editorial: SLP of Revenue dismissed, PCIT v. Mysore Minerals Ltd. (2022) 289 Taxman 408 (SC)

S. 37(1) : Business expenditure-Cancellation of joint venture agreement-Compensation paid-Nexus between cancellation of JDA and execution of construction agreement-Allowable as deduction.

Nitesh Estates (P.) Ltd. v. ACIT (2022) 289 Taxman 45 (Karn.)(HC)

S. 36(1)(vii) : Bad debt-Amount offered as income-Written as bad debt in books of account-Debtor has shown as liability in its books of account-Allowable as deduction as bad debt. [S. 36(2)]

PCIT v. Nilgiri Financial Consultants Ltd. (2022) 289 Taxman 115 (Delhi)(HC)

S. 36(1)(iii) : Interest on borrowed capital-Investment company-Commercially expedient-Difference between interest received and paid by assessee for purpose of business-Deletion of disallowance was affirmed. [S. 37(1)]

CIT v. Shriram Investments (2022) 289 Taxman 315 (Mad.)(HC)

S. 35 : Scientific research expenditure-Donations to research organisations-Deduction cannot be denied on the ground that registration granted was cancelled with retrospective effect. [S. 35(1)(iii)]

PCIT v. Maco Corpn. (India) (P.) Ltd. (2022) 289 Taxman 564 (Cal.)(HC)

S. 32 : Depreciation-lease of assets-Genuine transaction-Entitle to depreciation.

CIT, LTU v. Canara Bank. (2022) 142 taxmann.com 361 (Karn.)(HC) Editorial : Notice issued IN SLP filed by the Revenue, CIT, LTU v. Canara Bank. (2022) 289 Taxman 82 (SC)

S. 28(i) : Business loss-Amalgamation-Excess of liabilities over assets-Allowable as business loss /deduction-Matter remanded with direction. [S. 37(1)]

CIT, LTU v. Canara Bank. (2022) 142 taxmann.com 361 (Karn.)(HC) Editorial : Notice issued IN SLP filed by the Revenue, CIT, LTU v. Canara Bank. (2022) 289 Taxman 82 (SC)

S. 14A : Disallowance of expenditure-Exempt income-suo motu disallowance-Failure to give cogent reason for dissatisfaction-Deletion of addition is justified. [R. 8D(2)(iii)]

PCIT v. West Bengal Infrastructure Development Finance Corporation Ltd. (2022) 289 Taxman 312 (Cal.)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction is mandatory-Disallowance cannot exceed exempt income. [R. 8D]

PCIT v. TV Today Network Ltd. (2022) 289 Taxman 132 / 217 DTR 1/ 328 CTR 204 (Delhi)(HC)

S. 14A : Disallowance of expenditure-Exempt income-Not incurred any expenditure in earning dividend income-No disallowance could be made. [R. 8D]

CIT, LTU v. Canara Bank. (2022) 142 taxmann.com 361 (Karn)(HC) Editorial : Notice issued IN SLP filed by the Revenue, CIT, LTU v. Canara Bank. (2022) 289 Taxman 82 (SC)