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. 115JB : Book profit-Provision for bad and doubtful debts-Corresponding amount reduced from loans and advances on assets side of balance sheet-Net provision is shown-Provision not to be added in computing book profit. [S. 36(1)(vii)]

PCIT v. Narmada Chematur Petrochemicals Ltd. (2021) 439 ITR 761 (Guj.)(HC)

S. 80HHC : Export business-Deduction granted under section 80IB must be excluded. [S. 8IA(9), 80IB]

Kanam Latex Industries Pvt. Ltd. v. CIT (2021) 439 ITR 218 /(2022) 214 DTR 139/ 326 CTR 793 (Ker.)(HC)

S. 80HHB : Projects outside India-Gross total income-Additional deduction to be computed on the basis of recomputed gross total income.

CIT v. Bhageeratha Engineering Ltd. (No. 2) (2021) 439 ITR 713 (Ker.)(HC)

S. 68 : Cash credits-Agricultural income-Cash deposits-Failure to establish the source-Addition was valid.

Rakesh Kumar Gupta v. CIT (2021) 439 ITR 360 (All.)(HC)

S. 37(1) : Business expenditure-Penalty-Not compensatory in nature-Not allowable as deduction. [Kerala General Sales tax Act, 1963, S. 45A]

PTL Enterprises Ltd. v. Dy. CIT (2021) 439 ITR 365/( 2022) 212 DTR 404 / 326 CTR 282 (Ker.). Editorial : Affirmed in PTL Enterprises Ltd. v. Dy. CIT( 2022) 443 ITR 260 (SC) (HC)

S. 35D : Amortisation of preliminary expenses-Share premium expenses-Not part of capital employed-Cost of acquisition does not constitute cost of project-cost of acquisition of companies could not be treated as asset for allowing deduction under section 35D.

Subex Ltd. v. CIT (2021) 439 ITR 495 / 2022) 285 Taxman 350 (Karn.)(HC)

S. 28(i) : Business loss-Recording notional loss or profit-Method of accounting-Current assets-Loss on revaluation and sale of bonds-Consistent method-Allowable as business loss. [S. 37(1), 145]

CIT v. Bhageeratha Engineering Ltd. (No. 1) (2021) 439 ITR 704 283 Taxman 110 (Ker.)(HC)

S. 28(i) : Business income-Income from lease-Exploitation of property and not exploitation of business assets-Assessable as income from other sources-Quality loss-No business carried on-Not allowable as deduction. [S. 2(14), 56]

PTL Enterprises Ltd. v. Dy. CIT (2021) 439 ITR 365/( 2022) 212 DTR 404 / 326 CTR 282 (Ker.)(HC).Editorial : Affirmed in PTL Enterprises Ltd. v. Dy. CIT( 2022) 443 ITR 260 (SC)

S. 28(i) : Business income-lease rent-Scheme sanctioned by BIFR-Assessable as business income. [S. 14]

CIT v. Premier Tyres Ltd. (2021) 439 ITR 346 / ( 2022) 285 Taxman 596 /212 DTR 404/ 326 CTR 282 (Ker.)(HC) CIT v. PTL Enterprises Ltd. (2021) 439 ITR 346 /( 2022) 212 DTR 404 / 326 CTR 282(Ker.)(HC)

S. 28(i) : Business income-Sale of technical know how-Cost was claimed as revenue expenditure-Receipt assessable as business income. [S. 56]

CIT v. ABB Ltd. (2021)439 ITR 554/(2022) 284 Taxman 350 (Karn.)(HC)