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Important Cases

Whether expenditure on upgrading computers are allowable as revenue expenditure?

CIT v. Southern Roadways Ltd. (2007) 288 ITR 15 (Mad.)Relevant section: 37The High Court held that the upgradation of computers by changing certain parts thereby enhancing the configuration of the computers for improving their efficiency, but without making any structural alterations is not change of an enduring nature. Therefore, the expenditure incurred by the assessee had to be treated as revenue expenditure.

Whether excess charges paid by the assessee for using excess load of electricity was allowable business expenditure?

CIT, Patiala v. Industrial Cables (India) Ltd. (2007) 162 Taxman 423 (Punj. & Har.)Relevant section: 37(1)The Tribunal recorded a finding that the amount paid by the assessee was a kind ofsurcharge levied for drawal of excess load as per the PSEB Rules and not penalty. Theassessee had used the excess load in the course of business, which certainly hasrelation with the business. Hence, excess charges paid by the assessee for using excessload for business purpose, .....

Mutual fund’s loss allow or disallow after dividend recieved

Whether assessee was entitled to claim deduction of loss incurred on sale of unitsof mutual fund purchased by the assessee for two days to get the benefit of thedividend income under section 10(33)?Vaneet Jain v. CIT, Panchkula (2007) 158 Taxman 410 (Punj. & Har.) 13Relevant section: 28(i)“The assessee had made investment for the purchase of units of mutual fund for Rs. 5lakhs along with the right to receive dividend. After two days of purchase of .....