What is the leading case on Section 40(a) of the Income Tax Act?

Pr. CIT v. BMC Software India (P.) Ltd. (109 Taxmann.com 277) is the decision most relied on for Section 40(a), cited in 10 judgments. A High Court decision affirmed by the Supreme Court regarding income tax issues has persuasive value.

Which cases are most cited on Section 40(a)?

Pr. CIT v. BMC Software India (P.) Ltd. (109 Taxmann.com 277) — 10 citing judgments; Principal Commissioner of Income Tax-1 v. BMC Software India (P.) Ltd. (109 Taxmann.com 278) — 9 citing judgments; 168, Northern Operating Services (P.) Ltd. v. Joint Commissioner of Income-tax (149 Taxmann.com 52) — 3 citing judgments.

How many judgments are there on Section 40(a)?

BharatTax indexes 99 ITAT, High Court and Supreme Court judgments that turn on Section 40(a) of the Income Tax Act, 1961.

Section 40(a) of the Income Tax Act

Income-tax Act, 2025: s.35

Section 40(a) falls under section 40 of the Income-tax Act, 1961, which corresponds to section 35 (Amounts not deductible in certain circumstances) of the Income-tax Act, 2025.

Read section 35 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 40(a) is Pr. CIT v. BMC Software India (P.) Ltd. (109 Taxmann.com 277), cited in 10 of the 99 judgments on BharatTax that turn on this section.

Leading authorities on Section 40(a)

Pr. CIT v. BMC Software India (P.) Ltd.

109 Taxmann.com 277 · 2019 · High Court

citing judgments

A High Court decision affirmed by the Supreme Court regarding income tax issues has persuasive value.

Principal Commissioner of Income Tax-1 v. BMC Software India (P.) Ltd.

109 Taxmann.com 278 · 2019 · Supreme Court

citing judgments

168, Northern Operating Services (P.) Ltd. v. Joint Commissioner of Income-tax

149 Taxmann.com 52 · 2023 · Reported

citing judgments

Judgments on Section 40(a)

M/S Icici Venture Funds Management Co.Ltd, Bangalore vs. The Deputy Commissioner of Income Tax Large Tax Payers Unit, Bangalore

In the result, the assessee's appeal is allowed for statistical purposes

ITA 2678/BANG/2017[2013-14]Status: DisposedITAT Bangalore18 Apr 2018AY 2013-14

Bench: Shri N.V. Vasudevan & Shri Jason P Boaz

For Appellant: Shri H. N. Khincha, C.AFor Respondent: Shri B.R. Ramesh, JCIT (D.R)

Section 143(3)Section 14ASection 40Section 43BSection 80G

The Pr. Commissioner of Income Tax -3 vs. Engineers India Ltd

Appeal is allowed

ITA/1156/2017HC Delhi14 Mar 2018

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

Section 260ASection 40

Lodha Estate India Ltd, Mumbai vs. DCIT Cen Cir 7(3), Mumbai

In the result, the appeals filed by the assessee (in Grounds Nos

ITA 5466/MUM/2016[2008-09]Status: DisposedITAT Mumbai27 Feb 2018AY 2008-09

Bench: Shri C. N. Prasad, Jm &Dr. A.L.Saini, Am आयकरअपीऱसं./Ita No.5466/M/2016 (निर्धारणवषा / Assessment Year: 2008-09) Lodha Estate India Ltd. Vs. Dcit Cen Cir.7(3), Mumbai 412, 4Th Floor, 17G, Vardhaman Room No.655, Aaykarbhavan, M.K. Chamber, Cawasji Patel Road, Road, Mumbai – 400 020. Horniman Circle, Fort, Mumbai – 400 001. स्थायीऱेखासं./ जीआइआरसं./ Pan/Gir No. : Aaacl 1723 E (Assessee) .. (Respondent) Assessee By :Shri Jitendra Jain, Advocate Respondent By :Shri V. Vidhyadhar, Dr सुनवाईकीतारीख/ Date Of Hearing : 22/02/2018 घोषणाकीतारीख/Date Of Pronouncement : 27/02/2018 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am:

For Appellant: Shri Jitendra Jain, AdvocateFor Respondent: Shri V. Vidhyadhar, DR

Section 132(1)Section 143(3)Section 147Section 148Section 245CSection 245D(1)Section 37Section 40Section 80I

Swanston Multiplex Cinemas P.Ltd, Mumbai vs. Asst CIT Cir 11(1), Mumbai

The appeal of the assessee is partly allowed

ITA 1135/MUM/2015[2005-06]Status: DisposedITAT Mumbai03 Oct 2017AY 2005-06

Bench: Shri Joginder Singh & Shri G. Manjunathaassessment Year: 2005-06 Swanston Multiplex Cinemas Acit, Private Limited, Circle-11(1), बनाम/ 9Th Floor, Viraj Towers, W.E. R. No.467, Vs. Highway Next To Andheri Aayakar Bhavan, Flyover Andheri (East), M. K. Road, Mumai-400093 Mumbai-400020 ("नधा"रती/Assessee) (राज"व /Revenue) Pan No.:-Aafcs6295K

Section 139Section 142Section 143Section 143(1)Section 143(2)Section 147Section 148Section 40

M/S. C D Security Services Network Ltd., New Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 3491/DEL/2014[2008-09]Status: DisposedITAT Delhi05 Sept 2017AY 2008-09

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

Section 143(2)Section 144Section 40Section 43B

DCIT, New Delhi vs. M/S. Mira Exim Ltd., New Delhi

In the result, the Appeal of the Revenue and the Cross Objection of the assessee are dismissed

ITA 125/DEL/2014[2009-10]Status: DisposedITAT Delhi24 Apr 2017AY 2009-10

Bench: Shri I.C. Sudhir & Shri B.P. Jainassessment Year 2009-10 Dcit, Vs. Mira Exim Ltd. Circle-6(1), Room No.413, 523-24, World Trade C.R. Building I.P. Estate, Centre, New Delhi. Barakhamba Road, New Delhi. Pan: Aaacm 2066M (Appellant) (Respondent)

For Respondent: S/Shri H.K. Chaudhary CIT-DR and Rajesh Kumar, Sr.D.R

Section 40Section 9Section 9(1)(vii)

Sonata Realty P. Ltd, Mumbai vs. ACIT CC 38, Mumbai

In the result, appeal filed by the assessee in ITA No

ITA 7591/MUM/2013[2008-09]Status: DisposedITAT Mumbai14 Mar 2017AY 2008-09

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7591/Mum/2013 ("नधा"रण वष" / Assessment Year : 2008-09) M/S Sonata Realty Pvt. Ltd., Acit, Cc – 38, बनाम/ Plot No. 8, Aayakar Bhavan, V. Shah Industrial Estate, M.K. Marg, Off. Veer Desai Road, Mumbai – 400 020. Andheri (W), Mumbai – 400 053. "थायी लेखा सं./Pan : Aajcs8737Q .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Appellant: NoneFor Respondent: Ms. Pooja Swaroop, DR

Section 154Section 40

Kejriwal Auto Electric Engineering Works, Kolkata vs. DCIT, Cir-Murshidabad, Murshidabad

In the result, appeal filed by the assessee is allowed

ITA 760/KOL/2016[2007-08]Status: DisposedITAT Kolkata23 Feb 2017AY 2007-08

Bench: Shri A.T.Varkey, Jm & Dr. A.L.Saini, Am Kejriwal Auto Electric Vs. Dcit, Circle-Murshidabad, Engineering Works, Ayakar Bhawan, 1/4C, Khagendra Chatterjee 39, R.N.Tagore Road, Road, P.O. Berhampore-742101 Kolkata-700002 Dist Murshidabad "थायी लेखा सं./जीआइआर सं./Pan/Gir No.: Aadfk 3389 H .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Assessee By : Shri V.N.Purohit, Ca Revenue By : Sk.Z.H.Tanweer, Jcit, Sr.Dr सुनवाई क" तार"ख / Date Of Hearing : 27/12/2016 घोषणा क" तार"ख/Date Of Pronouncement 23/02/2017 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Appeal Filed By The Assessee Pertaining To The Assessment Year 2007-08, Is Directed Against The Order Passed By Ld. Cit(A)-21, Kolkata In Appeal No.1339/Dcit.C-Murshidabad/Cit(A)- 21/Kol/14-15, Dated 01.03.2016, Which In Turn Arises Out Of An Order Passed By The Assessing Officer (Ao) Under Section 143(3) Of The Income Tax Act 1961, (Hereinafter Referred To As The ‘Act’), Dated 27.11.2009. 2. Brief Facts Of The Case Qua The Assessee Are That The Assessee Is Engaged In Manufacturing, Repairing & Trading Of Battery & Battery Products. The Assessee Also Works As A Commission Agent. The Assessee Filed Its E-Return Of Income On 29.10.2007 Disclosing Its Total Income At Rs.Nil. The Assessee’S Case Was Selected For Scrutiny & The Ao Framed The Assessment Disallowing Interest On Cc A/C Rs.13,36,747/- & Term Loan A/C Rs.2,06,389/- U/S.43B(E) Of The Act. 3. Aggrieved From The Order Of Ao, The Assessee Filed An Appeal

For Appellant: Shri V.N.Purohit, CAFor Respondent: SK.Z.H.Tanweer, JCIT, SR.DR

Section 143(3)Section 40Section 43B

M/S. Sumaitri Bima Distributors Pvt. Ltd., Faridabad vs. ITO, New Delhi

In the result, appeal is allowed for statistical purpose

ITA 2580/DEL/2014[2008-09]Status: DisposedITAT Delhi30 Nov 2016AY 2008-09

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2008-09 Vs. Income Tax Officer, Ward-9(3), M/S. Sumaitri Bima Distributors Pvt. Ltd., C/O-Escorts Ltd., 15/5, New Delhi Mathura Road, Faridabad Pan : Aahcs7137E (Appellant) (Respondent) Appellant By Sh. R.M. Mehta, Adv. Respondent By Sh. N.K. Bansal, Sr.Dr Date Of Hearing 22.09.2016 Date Of Pronouncement 30.11.2016 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against Order Dated 03/02/2012 Passed By The Learned Commissioner Of Income-Tax( Appeals)-Xii, New Delhi For Assessment Year 2008-09 Raising Following Grounds: “On The Facts & Circumstances Of The Case & In Law, The Learned Cit(A) Erred In Confirming The Addition Of Rs. 10,28,628/- Made By The Assessing Officer U/S 40(A) For Non-Deduction Of Tds On Salaries Inspite Of The Evidences Produced For Deduction Of Tax In Applicable Cases. The Learned Cit(A) Ought To Have Deleted The Disallowance Impugned Simply On The Ground That The Provisions Of Section 40(A) Do Not Apply To Payments Made On Account Of Salaries. On The Facts & Circumstances Of The Case & In Law, The Learned Cit(A) Erred In Confirming The Disallowance Of Rs.4,20,101/- Made By The Assessing Officer On Account Of ‘Other Expenses’ Shown In A Schedule Of The Return Form, Without Even Looking Into The Facts 85

Section 143(2)Section 40

Smec International Pty. Ltd., New Delhi vs. ADIT, Intl. Taxation, New Delhi

In the result, appeal is allowed partly for statistical purpose

ITA 5926/DEL/2012[2008-09]Status: DisposedITAT Delhi30 Nov 2016AY 2008-09

Bench: Sh. H.S. Sidhu & Sh. O.P. Kantassessment Year: 2008-09 Vs. Adit, Intl. Taxation, Range-2, M/S. Smec International Pvt. Ltd., Bansal’S Flat, P-39 , 1St New Delhi Floor, South Extension, Part-2, New Delhi Pan : Aaics3406K (Appellant) (Respondent) Appellant By Sh. R. M. Mehta, Ca Respondent By Sh. Anuj Arora, Cit(Dr) Date Of Hearing 21.09.2016 Date Of Pronouncement 30.11.2016 Order Per O.P. Kant, A.M.: This Appeal By The Assessee Is Directed Against Order Dated 17/10/2012 Passed By The Assessing Officer Under Section 143(3) Read With Section 144C Of The Income-Tax Act, 1961 (In Short ‘The Act’) For Assessment Year 2008-09. The Impugned Order Has Been Passed Giving Effect To The Direction Of Dispute Resolution Panel (In Short ‘Drp’). The Grounds Raised In Appeal Were Modified Through An Application Dated 24/09/2015, Which Are Reproduced As Under: “ 1. Whether On The Facts & In The Circumstances Of The Case, The Assessing Officer Has Erred In Rejecting Books Of Account As There Are No Descrepancies & The Lower Profit Is No Reason To Reject The Books Of Account & The A O Is Also Wrong In Holding That The Separate Project Wise

Section 143(3)Section 144CSection 163Section 40Section 44BSection 44D

Principal Commissioner of Income Tax - 7 vs. M/S Rohde & Schwarz India Pvt. Ltd

ITA/701/2016HC Delhi07 Nov 2016

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MS. JUSTICE DEEPA SHARMA

Section 40Section 9

Principal Commissioner of Income Tax - 7 vs. M/S Rohde & Schwarz India Pvt. Ltd

ITA/700/2016HC Delhi07 Nov 2016

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MS. JUSTICE DEEPA SHARMA

Section 40Section 9

Infineon Technologies India Private Limited, Bangalore vs. DCIT, Bangalore

In the result, the appeal is partly allowed for statistical purposes

ITA 1068/BANG/2011[2007-08]Status: DisposedITAT Bangalore22 Sept 2016AY 2007-08

Bench: Smt. Asha Vijayaraghavanshri S Jayaramanit(Tp)A Nos.1068/Bang/2011 (Asst. Year 2007-08) M/S Infineon Technologies India Pvt. Ltd., Kalyani Platina, 3Rd Floor, Block I, #6&24, Epip Zone Phase I, Whitefiled, Bengaluru- 560 066. . Appellant Vs. The Dy Commissioner Of Income-Tax, Circle – 11(4), Bengaluru. . Respondent

For Appellant: Shri KR Vasudevan, AdvocateFor Respondent: Smt. Priscilla Singsit, CIT

Section 10ASection 133(6)Section 143(2)Section 143(3)Section 92C

Oracle Financial Services Software Ltd, Mumbai vs. ITO (TDS) 2(1, Mumbai

In the result, assessee’s appeal in ITA No 3653/Mum/2014 for the assessment year 2006-07 is allowed as indicated above

ITA 3653/MUM/2014[2006-07]Status: DisposedITAT Mumbai17 Aug 2016AY 2006-07

Bench: Shri Mahavir Singh & Shri Ramit Kochar

For Respondent: Shri Naveen Gupta

Section 133ASection 194CSection 201Section 201(1)Section 40

Oracle Financial Services Software Ltd, Mumbai vs. ITO (TDS) 2(1), Mumbai

In the result, appeal of the assessee is allowed for statistical purpose

ITA 2929/MUM/2014[2007-08]Status: DisposedITAT Mumbai12 Aug 2016AY 2007-08

Bench: Shri R.C.Sharma & Shri Pawan Singhoracle Financial Services Software Ito (Tds)-2(1), Mumbai. Ltd., Oracle Park, Off Western Express Highway, Goregaon (E), Vs. Mumbai-400057. Pan: Aaacc1448B (Appellant) (Respondent)

For Appellant: Shri Paras Savla, Harsh

Section 133ASection 201Section 201(1)Section 40