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-Contributions to provident fund and employees’ state insurance-Not deposited in respective fund within stipulated time-Not allowable as deduction. [S. 36(1)(va)]

PCIT v. Strides Arcolab Ltd. (2023) 450 ITR 129/ 129 Taxman 530 (SC) Editorial: Decision of Bombay High Court, reversed, CIT v. Strides Arcolab Ltd (ITA No. 376 of 2017 dt. 22-3-2019

S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education cess-Not allowable as business expenditure-Amended by Finance Act, 2022 with retrospective effect from 1-4-2005 (2022) 442 ITR 91 (St). [S. 37(1)]

JCIT v. Chambal Fertilisers and Chemicals Ltd. (2023) 450 ITR 164 / 330 CTR 109 (SC) Editorial : ACIT v. Chambal Fertilisers and Chemicals Ltd. (2018) 61 ITR 33 (Jaipur)(Trib.)

S. 37(1) : Business expenditure-Capital or revenue tests-Rubber plantation-Amount spent on upkeep and maintenance of mature rubber trees-Allowable as revenue expenditure-Cost of replacement of dead and useless rubber trees deductible as replacement cost [R. 7A(2)].

Rehabilitation Plantations Ltd. v. CIT (2023) 450 ITR 626 / 331 CTR 719(FB) (Ker.)(HC) Editorial : Rehabilitation Plantations Ltd v. CIT (2012) 251 CTR 343/ 73 DTR 78 (Ker)(HC), overruled.

S. 37(1) : Business expenditure-loss on forward contracts for foreign exchange-Transactions to hedge against risk of foreign exchange fluctuations-loss not speculative and to be allowed. [S. 28(i), 43(5)]

PCIT v. Simon India Ltd. (2023) 450 ITR 316 / 221 DTR 358/ 330 CTR 222 (Delhi)(HC)

S. 37(1) : Business expenditure-Donation given for public welfare of construction of ring road-Allowable expenditure.

PCIT v. Mysore Minerals Ltd. (2023) 450 ITR 647 (Karn.)(HC) Editorial : SLP of Revenue dismissed, PCIT v. Mysore Minerals Ltd (2022) 449 ITR 1(St)

S. 37(1) : Business expenditure-Corporate Social Responsibility-Expenses of public sector company-Allowable as deduction.

PCIT v. Eastern Coalfields Ltd. (2023) 450 ITR 184 /291 Taxman 457(Cal.)(HC) Editorial: CIT v. Eastern Coalfields Ltd. (2020) 83 ITR 61 (SN) (Kol.)(Trib.), affirmed.

S. 14A : Disallowance of expenditure-Exempt income-Disallowance of expenditure on basis that some deployment of manpower for managing investment cannot be ruled out-Tribunal reducing the disallowance on ad hoc basis-No question of law [R.8D]

PCIT v. Simon India Ltd. (2023) 450 ITR 316 / 221 DTR 358/ 330 CTR 222 (Delhi)(HC)

S. 4 : Charge of income-tax-Capital or revenue Receipt-Preoperative expenditure pending capitalization-Interest Earned from fixed deposits of unutilised foreign external commercial borrowing loans during period of construction-Interest capitalised in the books of account-Capital receipt. [S. 28(i), 56, 145]

PCIT v. Triumph Realty Pvt. Ltd. (No. 1) (2023) 450 ITR 271 (Delhi)(HC) PCIT v. Triumph Realty Pvt. Ltd. (No. 2) (2023) 450 ITR 274 (Delhi)(HC)/Editorial : SLP of revenue is dismissed due to failure to explain delay of 699 days in filing SLP .PCIT v. Triumph Realty Pvt. Ltd. (2024)468 ITR 109 (SC)

S. 4 : Charge of income-tax-Capital or revenue-Race Club-Membership fees received from members-Capital receipt. [S. 28((i), 260A]

PCIT v. Royal Western India Turf Club Ltd. (2023) 450 ITR 707 (Bom)(HC) Editorial : Affirmed, CIT v. Royal Western India Turf Club Ltd (2016) 52 ITR 235 (Mum.)(Trib). SLP of Revenue dismissed, PCIT v. Royal Western India Turf Club Ltd. (2023)453 ITR 460 (SC)

Interpretation of taxing statutes — Precedent – Ratio of judgments relating to one tax enactment not to be treated as precedent in case relating to another tax enactment — Especially when language, object and purpose of enactments are different.[ Interest-tax Act, 1974, S. 2(5A), 2(5B), 2(7) ]

Muthoot Leasing and Finance Ltd v. CIT (2023) 450 ITR 496/ 292 Taxman 5/ 330 CTR 209(SC)