The High Court held that embezzlement of cash by director of assessee is allowable as Business loss and recovery of amount or outcome of pending criminal prosecution against director before Magistrate Court is not relevant. Facts The assessee claimed as bad debt u/s 36 of the Income-tax Act, 1961 the amount embezzled by a director, […]
PCIT VS. LUWA INDIA PVT. LTD. [TS-281-HC-2021 (KAR HC)-TP]
While exercising jurisdiction u/s 92CA(3), the TPO can only determine the ALP of an international transaction and cannot examine the allowability of the claim by applying the benefit test or the conditions as provided under Section 37(1) of the Act Facts The assessee, was engaged in the business of manufacturing textiles machines for textile manufacturers […]
PCIT VS. KHYATI REALTORS PVT. LTD. [ITA NO. 291 OF 2017; (BOMBAY HIGH COURT)]
Advance paid for booking commercial space in ordinary course of business, which becomes irrecoverable, is allowable as deduction Facts of the Case The assessee, a private limited company, had advanced a sum of Rs. 10 crores to Bhansali Developers for booking commercial space in an upcoming construction project. For some reason, the deal failed. The […]
SHANKARA INFRASTRUCTURE MATERIALS LTD. v. ACIT [2021] 130 taxmann.com 67 (Karnataka HC)
MTM loss incurred by assessee on account of foreign exchange fluctuations on working capital loan with foreign currency swap option for business purpose is to be allowed as deduction under section 37(1) FACTS The assessee was a company engaged in business of trading steel tubes, pipes, PVC etc. The assessee filed its ITR on 23-9-2008 […]