Section 40A of the Income Tax Act

Income-tax Act, 2025: s.36

Section 40A of the Income-tax Act, 1961 corresponds to section 36 (Expenses or payments not deductible in certain circumstances) of the Income-tax Act, 2025.

Read section 36 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 40A is J.K. (Bom.) Limited v. CBDT and Another (118 ITR 312), cited in 50 of the 45 judgments on BharatTax that turn on this section.

Leading authorities on Section 40A

J.K. (Bom.) Limited v. CBDT and Another
118 ITR 312 · 1979 · High Court
50
citing judgments

The case elucidates the meaning of 'management services', detailing its components and considering whether such services qualify as 'technical services' for income tax purposes, particularly in relation to fees for technical services.

Judgments on Section 40A

M/S Harman Connected Services Corporation India Pvt. Ltd., Bangalore vs. DCIT, Bangalore

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

ITA 705/BANG/2016[2011-12]Status: DisposedITAT Bangalore23 May 2022AY 2011-12

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranit(Tp)A No.705/Bang/2016 Assessment Year : 2011-12 Dcit, M/S. Harman Connected Services Vs. Circle – 3(1)(2), Corporation India Private Limited, Bengaluru. (Formerly Known Symphony Teleca Corporation India Private Limited), Plot No.3 & 3A, Eoiz Industrial Area, Sy. No.85 & 86, Sadaramangala Village, Krishnarajapuram Hobli, Bengaluru – 560 066. Pan: Aabcg 5658 E Appellant Respondent Assessee By : Shri. T. Suryanarayana, Advocate Revenue By : Shri. Sumer Singh Meena, Cit(Dr)(Itat), Bengaluru. Date Of Hearing : 22.02.2022 Date Of Pronouncement : 23.05.2022 O R D E R Per B. R. Baskaran:

For Appellant: Shri. T. Suryanarayana, AdvocateFor Respondent: Shri. Sumer Singh Meena, CIT(DR)(ITAT), Bengaluru
Section 10ASection 143(3)Section 40Section 40A

Kanaiy Chatrabghoj Gajra, Mangalore vs. The Deputy Commissioner of Income Tax Central Circle - 2, Mangalore

In the result, both the appeals are allowed for statistical purposes

ITA 2624/BANG/2019[2016-17]Status: DisposedITAT Bangalore25 Feb 2022AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2016-17

For Appellant: Shri Srinivas Kamath, CAFor Respondent: Shri Priyadarshi Mishra, Addl.CIT(DR)(ITAT)
Section 132Section 132(4)Section 133ASection 143(3)Section 153ASection 40Section 40A

The Assistant Commissioner of Income Tax, Central Circle- 2, Mangaluru vs. Sri. Kanaiya C Gajra, Mangaluru

In the result, both the appeals are allowed for statistical purposes

ITA 2483/BANG/2019[2016-17]Status: DisposedITAT Bangalore25 Feb 2022AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2016-17

For Appellant: Shri Srinivas Kamath, CAFor Respondent: Shri Priyadarshi Mishra, Addl.CIT(DR)(ITAT)
Section 132Section 132(4)Section 133ASection 143(3)Section 153ASection 40Section 40A

M/S. Cisco Systems Capital (India) Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Special Range-2, Bangalore

In the result appeal filed by assessee stands allowed for statistical purposes

ITA 2614/BANG/2019[2015-16]Status: DisposedITAT Bangalore08 Jun 2021AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Rajan Vora, CAFor Respondent: Shri Pradeep Kumar, CIT(DR)(ITAT)
Section 143Section 143(3)Section 144C(1)Section 92C

Bhavarlal Mangilal Jain, Mumbai vs. ACIT 19 (1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2245/MUM/2019[2012-13]Status: DisposedITAT Mumbai05 Apr 2021AY 2012-13

Bench: Shri Vikas Awasthyआअसं. 2245/मुं/2019 ("न.व 2012-13) Shri Bhavarlal Mangilal Jain, 58/1, Ganesh Kripa Building, Mughbhat Lane, Thakurdwar Road, Mumbai 400 004 Pan: Aabpj 9306K ...... अपीलाथ" /Appellant बनाम Vs. The Acit -19(1), 203, 2Nd Floor, Matru Mandir, Tardeo Road, Mumbai 400 007 ..... ""तवाद"/Respondent

For Appellant: Shri Nimesh ChothaniFor Respondent: Shri Sanjay J. Seth
Section 36(1)(iii)

Ingersoll - Rand (India) Limited, Bangalore vs. Asst.C.I.T., Bangalore

In the result appeal filed by assessee stands allowed for statistical purposes

ITA 442/BANG/2016[2011-12]Status: DisposedITAT Bangalore18 Feb 2020AY 2011-12

Bench: Shri. Chandra Poojari & Smt. Beena Pillaisl. Appeal No. Appellant Respondent Assessment No. Year 1 It(Tp)A M/S. Ingersoll Rand Assistant Commissioner 2011 – 12 442/Bang/2016 (India) Ltd., Of Income – Tax, Plot No. 35, Circle – 3 (1) (1), Kiadb Industrial Area, Bangalore. Bidadi, Bangalore – 562 109. Pan No : Aaaci3099Q 2 It(Tpa) Assistant Commissioner M/S. Ingersoll Rand 2011 – 12 614/Bang/2016 Of Income – Tax, (India) Ltd., Circle – 3 (1) (1), Plot No. 35, Bangalore. Kiadb Industrial Area, Bidadi, Bangalore – 562 109. Pan No : Aaaci3099Q 3 It(Tp)A Assistant Commissioner M/S. Ingersoll Rand 2011 – 12 615/Bang/2016 Of Income – Tax, International (India) Ltd., Circle – 3 (1) (1), Plot No. 35, Kiadb Bangalore. Industrial Area, Bidadi, Bangalore – 562 109. Pan No : Aaaci3099Q 4 Co M/S. Ingersoll Rand Assistant Commissioner 2011 – 12 97/Bang/2017 International (India) Ltd., Of Income – Tax, (Arising Out Of Plot No. 35, Kiadb Circle – 3 (1) (1), It(Tp)A Industrial Area, Bidadi, Bangalore. 615/Bang/2016) Bangalore – 562 109. Pan No : Aaaci3099Q 5 It(Tp)A M/S. Ingersoll Rand Assistant Commissioner 2011 – 12 650/Bang/2016 International (India) Ltd., Of Income – Tax, Plot No. 35, Kiadb Circle – 3 (1) (1), Industrial Area, Bidadi, Bangalore. Bangalore – 562 109. Pan No : Aaaci3099Q

For Appellant: Mr. Muzaffar Hussain, CIT – DR
Section 143(1)Section 143(2)

Madan Lal Baasi vs. Commissioner of Income Tax

Appeal stands dismissed

ITA/113/2000HC Punjab & Haryana13 Feb 2020

Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE AVNEESH JHINGAN

Section 132Section 156Section 40A

M/S Ic India Private Limited, Bangalore vs. Deputy Commissioner of Income Tax Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee is allowed for statistical purposes

ITA 481/BANG/2019[2015-16]Status: DisposedITAT Bangalore05 Jul 2019AY 2015-16

Bench: Shri Arun Kumar Garodia & Shri Pavan Kumar Gadaleassessment Year : 2015-16 M/S. Ic India Private Limited, The Deputy No. 565, V Square, Commissioner Of 30Th Main Road, Sy No. 17, Vs. Income Tax, Kattariguppe, Circle 3 (1) (1), Bangalore – 560 085. Bangalore. Pan: Aadci2780H Appellant Respondent

For Appellant: Shri Karthik N, CAFor Respondent: Dr. P.V. Pradeep Kumar, Addl. CIT (DR)
Section 234BSection 40a

Rexo Flex Private Limited, Hyderabad vs. Income Tax Officer, Ward-3(1), Hyderabad

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

ITA 185/HYD/2019[2015-16]Status: DisposedITAT Hyderabad12 Jun 2019AY 2015-16

Bench: Smt. P. Madhavi Devi & Shri A. Mohan Alankamonyassessment Year: 2015-16 Rexo Flex Private Vs. Income Tax Officer, Limited, Ward-3(1), Hyderabad. Hyderabad. Pan: Aabcr 8998 Q (Appellant) (Respondent) Assessee By: Sri K.C. Devdas Revenue By: Smt. V. Aparna, Dr Date Of Hearing: 03/06/2019 Date Of Pronouncement: 12/06/2019 Order Per A. Mohan Alankamony. Am:

For Appellant: Sri K.C. DevdasFor Respondent: Smt. V. Aparna, DR
Section 143(3)Section 40A

M/S H R. Logistics, Surat vs. ITO, Ward3(1)(4), Surat

In the result, the appeal of the assessee is allowed for 6

ITA 703/SRT/2018[2015-16]Status: DisposedITAT Surat27 Feb 2019AY 2015-16

Bench: Shri Kul Bharat & Shri O.P.Meenaआ.अ.सं./I.T.A. No.703/Srt/2018 िनधा"रण वष"/Assessment Year : 2015-16 H.R.Logistics, Vs. The Income Tax Officer, 126, Municipal Shopping Centre, Ward-3(1)(4), Surat. Sahara Darvaja, Ring Road, Surat. [Pan: Aaffh 4624 L] अपीलाथ" Appellant ""यथ"/Respondent िनधा"रती क" ओर से /Assessee By Shri Mehul R.Shah – Ca राज"व क" ओर से /Revenue By Shri Prasoon Kabra – Sr.Dr

Section 40ASection 68

Rustomjee Knowledge City P.Ltd, Mumbai vs. Asst CIT 9(1), Mumbai

In the result, the appeal filed by the assessee is hereby ordered to be allowed

ITA 3317/MUM/2016[2010-11]Status: DisposedITAT Mumbai19 Sept 2018AY 2010-11

Bench: Shri Shamim Yahya, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.3317/Mum/2016 (निर्धारण वर्ा / Assessment Year: 2010-11) M/S. Rustomjee Knowledge बिधम/ The Asst. Cit-9(1), Aayakar City Pvt. Ltd. Rustomjee Bhavan, M.K. Road, Vs. Acres, J.S. Road. Off. Mumbai-400020. Rustom Irani Marg, Dahisar (W), Mumbai-400099. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aadca1923E (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Ms. N. Hemlatha Assessee By: Shri Satish Mody सुनवाई की तारीख / Date Of Hearing: 22.06.2018 घोषणा की तारीख /Date Of Pronouncement: 19.09.2018 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 04.04.2016 Passed By The Commissioner Of Income Tax (Appeals)-21 Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The Ay. 2010- 11. 2. The Assessee Has Raised The Following Grounds: - 1. The Learned Commissioner Of Income-Lax (Appeals) -21, Mumbai, Has Erred In Disallowing Interest Of Rs.16,13,25G/- On The Ground That The Funds Borrowed For Business Purposes Were Used Or Utilized For Giving Advances To One "Terraform Realty On Which No Interest Was Charged.

For Appellant: Shri Satish ModyFor Respondent: Ms. N. Hemlatha
Section 142(1)Section 143(1)Section 143(2)Section 36(1)(iii)Section 37(1)Section 40A

Vijay Propinvest P.Ltd, Mumbai vs. ACIT CC 15 & 16

ITA 2231/MUM/2015[2006-07]Status: DisposedITAT Mumbai31 Jan 2018AY 2006-07
For Appellant: S/Shri Shailesh Parmar, Pratik JainFor Respondent: Shri Saurabh Deshpande-DR
Section 143(3)Section 148Section 254(1)Section 40A

East India Business Centre Private Limited, Kolkata vs. DCIT, Cir-7, Kolkata

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

ITA 2058/KOL/2016[2010-11]Status: DisposedITAT Kolkata17 Nov 2017AY 2010-11

Bench: Hon’Ble Shri J. Sudhakar Reddy] I.T.A. No. 2058/Kol/2016 Assessment Year : 2010-11 East India Business Centre Private Limited.......................................Appellant 25A, Shakespeare Sarani, The Legacy, 1St Floor, Kolkata - 700017 [Pan : Aabce7659R] D.C.I.T. Circle 7 Kolkata...................……………………………………Respondent 54, Rafi Ahmed Kidwai Road, Kolkata - 700017 Appearances By: Shri Subbiah Chidambaram, Advocate Appearing On Behalf Of The Assessee. Shri Biswanath Das, Addl Cit Appearing On Behalf Of The Revenue. Date Of Concluding The Hearing : September 12, 2017 Date Of Pronouncing The Order : November 17, 2017 Order This Is An Appeal Filed By The Assessee Directed Against The Order Of Cit (Appeals) – 16, Kolkata Dated 04.08.2016 For The Assessment Year 2010-11 On The Following Grounds: 1. Order Bad In Law & On Facts 1.1 That The Order Passed By The Ld. Cit (A) Under Section 250 Of The It Act Is Bad In Law & On Facts. 2. Disclosure Of Higher Income In Revised Return 2.1 That On The Facts & The Circumstances Of The Case & In Law, The Ld. Cit (A) Erred In Confirming The Contention Of The Assessing Officer (‘Ao’) That Disclosure Of Higher Income Of Rs. 37,65,827/- (Before Adjustment Of Brought Forward Losses) In The Revised Return Filed By The Company As Against The Original Return Resulted In Concealment Of Income. 2.2 That The Ld. Cit (A) Failed To Consider That The Total Income Disclosed In Both The Original & Revised Return Was Nil After Adjustment Of Brought Forward Losses. 3. Expenses Incurred Towards Property Service Charges

Section 250Section 40

DCIT(Ltu), New Delhi vs. M/S. C&S Electric Ltd, New Delhi

In the result, the appeal of the revenue stands dismissed while appeal filed

ITA 3364/DEL/2013[2008-09]Status: DisposedITAT Delhi22 Sept 2017AY 2008-09

Bench: Shri P.K.Bansal & Sh. Amit Shuklac & S Electric Ltd., Vs Dcit Ltu, (Formerly Known As Controls & Switchgear New Delhi. Co.Ltd.), 222, Okhla Industrial Estate, Phase-Iii, New Delhi. Pan-Aaacc0909K (Appellant) (Respondent) Dcit (Ltu), Vs C &S Electric Ltd., Nbcc Plaza, Pushp (Formerly Known As M/S. Control & Vihar, Sector-Iii, Switchgear Co. Ltd.), New Delhi-110017. 22, Okhla Industrial Estate, New Delhi-110020. Pan-Aaacc0909K (Appellant) (Respondent)

Section 10BSection 40ASection 40A(2)Section 80I

M/S C&S Electric Ltd., New Delhi vs. DCIT Ltu, New Delhi

In the result, the appeal of the revenue stands dismissed while appeal filed

ITA 3143/DEL/2013[2008-09]Status: DisposedITAT Delhi22 Sept 2017AY 2008-09

Bench: Shri P.K.Bansal & Sh. Amit Shuklac & S Electric Ltd., Vs Dcit Ltu, (Formerly Known As Controls & Switchgear New Delhi. Co.Ltd.), 222, Okhla Industrial Estate, Phase-Iii, New Delhi. Pan-Aaacc0909K (Appellant) (Respondent) Dcit (Ltu), Vs C &S Electric Ltd., Nbcc Plaza, Pushp (Formerly Known As M/S. Control & Vihar, Sector-Iii, Switchgear Co. Ltd.), New Delhi-110017. 22, Okhla Industrial Estate, New Delhi-110020. Pan-Aaacc0909K (Appellant) (Respondent)

Section 10BSection 40ASection 40A(2)Section 80I

Pr. Commissioner of Income Tax (Central)-3 vs. Marichika Properties Pvt. Ltd

ITA/634/2016HC Delhi19 Oct 2016

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

Section 143Section 143(1)Section 143(3)Section 148Section 153ASection 40

Om Air Freight Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 4306/DEL/2014[2010-11]Status: DisposedITAT Delhi19 Aug 2016AY 2010-11

Bench: Smt Diva Singh

Section 143(2)Section 14ASection 40A

DCIT vs. Jeans Knit Pvt. Ltd

In the result, the appeal of the revenue as well as the appeal of the assessee are dismissed

ITA 1244/BANG/2013[2008-09]Status: DisposedITAT Bangalore27 Nov 2015AY 2008-09

Bench: Shri Abraham P George & Shri Vijay Pal Raom/S.Jeans Knit Pvt. Ltd. No.21, E1, 2Nd Phase, Industrial Area, Peenya, Bangalore-560058. … Appellant Pan: Aabcj4513B Vs. Asst. Commissioner Of Income-Tax, Circle 11(5), Bangalore. … Respondent & (By The Revenue)

For Appellant: Shri Nageswar Rao, AdvocateFor Respondent: Shri Sanjay Kumar, CIT(DR)
Section 10BSection 2(22)(e)Section 37

Limited vs. Deputy Commissioner of Income Tax

Appeal is dismissed

ITA/40/2015HC Delhi19 Nov 2015
Section 32

Limited vs. Deputy Commissioner of Income Tax

Appeal is dismissed

ITA/189/2015HC Delhi19 Nov 2015
Section 32