Page 18 - DTPA Journal December 21

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on basis of interim order of SEBI alleging that certain Product development expenses : Product development
entities were deliberately making repeated losses expenses are deductible even though said expenditure
through their trading in stock option . was to be amortized over a period of 3 years as per
accounting practice adopted by assessee .
SECTION 32 OF THE INCOME-TAX ACT, 1961 -
DEPRECIATION SECTION 234B OF THE INCOME-TAX ACT,
1961 - INTEREST, CHARGEABLE AS
IBM India (P.) Ltd. v. Assistant Commissioner of
Income-tax, Circle-4(1)(2), Bangalore - [2020] 120 IBM India (P.) Ltd. v. Assistant Commissioner of
taxmann.com 424 (Bangalore - Trib.) Income-tax, Circle-4(1)(2), Bangalore - [2020] 120
taxmann.com 424 (Bangalore - Trib.)
Leased assets :Assessee-company was eligible for
depreciation on leased assets . Assessee-company was eligible to pay interest under
section 234B on incremental income arisen to it due to
IBM India (P.) Ltd. v. Assistant Commissioner of Advanced Pricing Agreement (APA) entered by it with
Income-tax, Circle-4(1)(2), Bangalore - [2020] 120 CBDT .
taxmann.com 424 (Bangalore - Trib.)
Commissioner of Income Tax, Bangalore v. JSW
Computer software :Assessee-company was to be Steel Ltd. - [2020] 121
allowed depreciation at rate of 60 per cent on computer Deferred tax liability : Interest under section 234-B
software that were capitalized . was chargeable where assessee failed to pay advance
tax in respect of deferred tax liabilityin view of
SECTION 37(1) OF THE INCOME-TAX ACT, insertion of clause (h) to second proviso to section
1961 - BUSINESS EXPENDITURE 115JB (1) .

IBM India (P.) Ltd. v. Assistant Commissioner of SECTION 2(35) OF THE INCOME-TAX ACT,
Income-tax, Circle-4(1)(2), Bangalore - [2020] 120 1961 - PRINCIPAL OFFICER
taxmann.com 424 (Bangalore - Trib.)
Suomotu disallowance under section 40(a)(ia) : Where Suvendra Kumar Panda v. Income Tax Officer,
assessee-company debited certain amount on account Corporate Ward 6(2), Chennai - [2020] 121
of various expenditures like rent, professional charges, taxmann.com 27 (Madras)
sub-contract charges, interest, royalty, etc. in its P&L Reassessment notice : Where petitioner had acted as a
account that attracted provisions of TDS and made director of company for a short period and disclosed
suomotu disallowance of said amount under section details of acting directors, acting directors of company
40(a)(ia), since these expenses were related to day-to- being available, department could have proceeded
day running of business of assessee, same could not be against any one of such acting directors for
disallowed under section 37(1) merely because reassessment proceedings and could have treated any
assessee had made suomotu disallowance of same one of them as Principal Officer, and, thus, impugned
under section 40(a)(ia) . order treating petitioner as Principal Officer was set
aside.
Principal Commissioner of Income-tax, Coimbatore
v. Vijayeshwari Textiles Ltd. - [2020] 121 SECTION 4 OF THE INCOME-TAX ACT, 1961 -
taxmann.com 29 (Madras) INCOME - CHARGEABLE AS
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