Which cases are most cited on Section 44AE?

Goodyear (I) Ltd. v. ITO (73 ITD 189) — 27 citing judgments; CIT v. Sidhartha Enterprises (322 ITR 80) — 23 citing judgments; DCIT v. Surface Finishing Equipment (81 TTJ 448) — 23 citing judgments; (India) Limited v. Additional Commissioner of Income Tax (254 ITR 673) — 11 citing judgments; (i) CIT v. Nikunj Eximp Enterprises Pvt. Ltd. (77 Taxmann.com 275) — 11 citing judgments.

How many judgments are there on Section 44AE?

BharatTax indexes 159 ITAT, High Court and Supreme Court judgments that turn on Section 44AE of the Income Tax Act, 1961.

Section 44AE of the Income Tax Act

Q: What is the leading case on Section 44AE of the Income Tax Act?

Goodyear (I) Ltd. v. ITO (73 ITD 189) is the decision most relied on for Section 44AE, cited in 27 judgments. Expenditure incurred for the transfer of the use of licenses, without acquiring ownership rights or an enduring benefit, constitutes revenue expenditure. Such payments are allowable as a deduction if they are directly relatable to services in the revenue field.

Income-tax Act, 2025: s.58

Section 44AE of the Income-tax Act, 1961 corresponds to section 58 (Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents) of the Income-tax Act, 2025.

Read section 58 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 44AE is Goodyear (I) Ltd. v. ITO (73 ITD 189), cited in 27 of the 159 judgments on BharatTax that turn on this section.

Leading authorities on Section 44AE

Goodyear (I) Ltd. v. ITO

73 ITD 189 · 2000 · ITAT

citing judgments

Expenditure incurred for the transfer of the use of licenses, without acquiring ownership rights or an enduring benefit, constitutes revenue expenditure. Such payments are allowable as a deduction if they are directly relatable to services in the revenue field.

CIT v. Sidhartha Enterprises

322 ITR 80 · 2010 · High Court

citing judgments

Penalty under Section 271(1)(c) is imposed only when there is a deliberate default and not a mere mistake. The furnishing of inaccurate particulars must be a deliberate attempt to evade tax, not just a mistake.

DCIT v. Surface Finishing Equipment

81 TTJ 448 · 2003 · ITAT

citing judgments

Non-compliance with notices issued under section 133(6) alone is not a sufficient basis to deny the genuineness of expenditure incurred by a company. The assessee's obligation extends to providing correct names and addresses of parties, not ensuring their response.

(India) Limited v. Additional Commissioner of Income Tax

254 ITR 673 · 2002 · High Court

citing judgments

Ad hoc additions to income are not legally sustainable. Mere non-compliance with notices under section 133(6) does not invalidate genuine expenditure. Losses incidental to business should be allowed as deductions in the year of discovery.

(i) CIT v. Nikunj Eximp Enterprises Pvt. Ltd.

77 Taxmann.com 275 · 2017 · ITAT

citing judgments

The recording of purchase transactions and subsequent export of goods in the books of accounts can prove the genuineness and veracity of such purchase transactions.

IT vs. Kerala Transport Co. (1994) 51 ITD (Coch) 405 (iv)Om Prakash Joshi v. ITO

102 TTJ 882 · 2006 · ITAT

citing judgments

Commissioner of Income Tax v. Harsh D Mehta

251 Taxmann 346 · 2017 · High Court

citing judgments

(i) CIT vs Jalaram Oil Mills (2001) 171 CTR (GUj) 426 (ii) Vishwakarma Industries v. CIT

135 ITR 652 · 1982 · High Court

citing judgments

ITO v. Shantilal Chuni-lal & Co.

45 ITD 581 · 1993 · ITAT

citing judgments

ITO v. Bindra Ban Bansi Lal

78 ITD 228 · 2001 · ITAT

citing judgments

Judgments on Section 44AE

Rakesh Bhatia, Faridabad vs. ITO-Nwr -W-52(2) Faridabad- Haryana, Faridabad

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

ITA 422/DEL/2024[2012-13]Status: DisposedITAT Delhi08 Apr 2024AY 2012-13

Bench: Shri Shamim Yahyarakesh Bhatia, Vs. Ito-Nmr-W-52 (2), 1J/17A, Nit, Faridabad. Faridabad – 121 001 (Haryana).

For Appellant: Shri Ajay Kumar Agarwal, CAFor Respondent: Shri Om Prakash, Sr. DR

Section 144Section 147Section 148Section 44A

Ram Dev Chandelwal, S/O Shri Heera Lal Chandelwal vs. Income Tax Officer, Ward - Bundi

In the result, appeal of the assessee is allowed

ITA 585/JPR/2023[2017-18]Status: DisposedITAT Jaipur28 Nov 2023AY 2017-18

Bench: Or At The Time Of Hearing.”

For Appellant: Shri S.L. Poddar (Adv.)For Respondent: Smt. Monisha Choudhary (Addl.CIT) a

Section 143(3)Section 250Section 68

Mahesh Prasad Singh, Ambikapur vs. Principal Commissioner of Income Tax, Raipur-1, Raipur

In the result, appeal of the assessee is dismissed in terms of our aforesaid observations

ITA 196/RPR/2022[2011-12]Status: DisposedITAT Raipur10 Oct 2023AY 2011-12

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No.196/Rpr/2022 "नधा"रण वष" /Assessment Year: 2011-12 Mahesh Prasad Singh Vs The Pr. Commissioner Of Income Tax, Vidyanagar, Sector-3, Raipur-1 Beside Sant Harkewal School, Ambikapur (C.G.)-497 001 Pan: Bbvps9072H (अपीलाथ" /Appellant) .. (""यथ" / Respondent) "नधा"रती क" ओर से /Assessee By : Shri R.B Doshi, Ca राज"व क" ओर से /Revenue By : Shri Debashis Lahiri, Cit-Dr सुनवाई क" तार"ख / Date Of Hearing : 26.09.2023 घोषणा क" तार"ख/Date Of Pronouncement : 10/10/2023 आदेश / O R D E R Per Arun Khodpia, Am : The Captioned Appeal Is Filed By The Assessee Against The Order Passed By The Ld. Pr. Commissioner Of Income Tax, National Faceless Appeal Centre (Nfac), Delhi, Dated 18.03.2023 U/S 263 Of The Income Tax Act, 1961 (For Short ‘The Act’) For Ay 2011-12. The Grounds Of The Appeal Raised By The Assessee Are As Under: “1. Ld. Pr. Cit Erred In Invoking The Provisions Of Sec. 263 & In Setting Aside The Assessment Order For Fresh Enquiry. Order Passed U/S 263 Is Unsustainable & Is Passed Without Properly Appreciating The Facts & Evidences On Record. The Assessment Order Is Neither Erroneous Nor Prejudicial To The Interest Of Revenue. 2. The Appellant Reserves The Right To Add, Amend Or Modify Any Of The Ground/S Of Appeal.”

For Appellant: Shri R.B Doshi, CAFor Respondent: Shri Debashis Lahiri, CIT-DR

Section 139(1)Section 143(3)Section 263Section 44A

Sibasankar Sahu, - Deogarh vs. PCIT, Sambalpur

In the result, appeal of the assessee is allowed

ITA 217/CTK/2022[2017-18]Status: DisposedITAT Cuttack09 Oct 2023AY 2017-18

Bench: Shri George Mathan & Shri Rajesh Kumarआयकर अऩीऱ सं/Ita No.217/Ctk/2022 (ननधाारण वषा / Assessment Year : 2017-2018) Sibasankar Sahu, Vs Pr.Cit, Sambalpur Arnapurna Store, At: Bania Sahi, Po/Ps: Deogarh Dist-Deogarh-768108 Pan No. :Apeps 1706 E (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee By : Shri P.K.Mishra, Advocate राजस्व की ओर से /Revenue By : Shri Abani Kanta Nayak, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 09/10/2023 घोषणा की तारीख/Date Of Pronouncement : 09/10/2023 आदेश / O R D E R Per Bench : This Is An Appeal Filed By The Assessee Against The Order Of The Ld. Pr.Cit, Sambalpur, Dated 18.03.2022, Passed In Itba/Rev/F/Rev5/2021-22/1041011837(1) For The Assessment Year 2017-2018. 2. It Was Submitted By The Ld. Ar That The Appeal Filed By The Assessee Is Delayed By 199 Days. It Was The Submission That The Delay Was On Account Of Medical Treatment Of The Assessee’S Father & Assessee’S Wife. It Was The Submission That The Assessee Is An Individual Engaged In Trading Of Potatoes, Onion & Garlic In The Remote Area Of The District Of Deogarh, Odisha. It Was The Submission That The Assessee Was Not Well- Versed In Taxation Issues & On Account Of The Medical Treatment Of The 2 Assessee’S Father As Also The Assessee’S Wife, The Assessee Could Not File

For Appellant: Shri P.K.Mishra, AdvocateFor Respondent: Shri Abani Kanta Nayak, CIT-DR

Section 144Section 144ASection 263Section 44A

Das Karmakar Brick Field, Kolkata vs. ITO, WD.23(1), Kolkata, Hooghly

In the result, the appeal of the assessee is partly allowed

ITA 8/KOL/2017[2013-14]Status: DisposedITAT Kolkata06 Oct 2023AY 2013-14

Bench: Shri Sonjoy Sarma & Shri Girish Agrawal]

Section 133ASection 143(2)Section 40A(3)Section 44A

Koyya Ganga Venkata Satya Bhaskar Rao, East Godavari Dist vs. Income Tax Oficer, Ward-1, Tuni

In the result, appeal of the assessee in I

ITA 146/VIZ/2023[2017-18]Status: DisposedITAT Visakhapatnam31 Jul 2023AY 2017-18

Bench: Shri Duvvuru Rl Reddy, Hon’Bleआयकर अपील सं./I.T.A.No.145/Viz/2023 & 146/Viz/2023 (ननधधारण वर्ा / Assessment Year : 2017-18) Koyya Ganga Venkata Satya Vs. Income Tax Officer Bhaskar Rao Ward-1 A.V.Nagaram Tuni East Godavari Dist. [Pan : Bespk1580A] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri O.N.Hari Prasada Rao, DR

Section 143(1)Section 154Section 44A

Koyya Ganga Venkata Satya Bhaskar Rao, East Godavari Dist vs. Income Tax Oficer, Ward-1, Tuni

In the result, appeal of the assessee in I

ITA 145/VIZ/2023[2017-18]Status: DisposedITAT Visakhapatnam31 Jul 2023AY 2017-18

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri O.N.Hari Prasada Rao, DR

Section 143(1)Section 154Section 44A

Hukum Singh, Ambikapur vs. Principal Commissioner of Income Tax, Raipur-1, Raipur

In the result, appeal of the assessee is allowed in terms of our aforesaid observations

ITA 136/RPR/2022[2015-16]Status: DisposedITAT Raipur10 Jul 2023AY 2015-16

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.136/Rpr/2022 "नधा"रण वष" / Assessment Year : 2015-16 Hukum Singh Near Pahuna Shop, Kedarpur, Ambikapur, Sarguja (C.G.) Pan : Atpps6279P .......अपीलाथ" / Appellant बनाम / V/S. The Pr. Commissioner Of Income Tax, Raipur-1 (C.G.) ……""यथ" / Respondent

For Appellant: Shri R.B Doshi, CAFor Respondent: Shri V.K Singh, CIT-DR

Section 143(3)Section 263Section 44A

Shri Darashansingh A. Bindra, Nashik vs. Assistant Commissioner of Income-Tax, Centaral Circle -2, Nashik

ITSSA 43/PUN/2022[2003-04]Status: DisposedITAT Pune06 Jul 2023AY 2003-04

Bench: Shri S S Viswanethra Ravi & Shri G. D. Padmahshaliआयकर अपऩल सं. / It(Ss) No. 41 Pun/2022 निर्धारण वर्ा / Assessment Year : 2002-03 Jagdishsingh A. Bindra, Amrit Villa, Nashik Poona Rd., Near Ashirwad Bus Stop, Nashik – 422 101 Pan: Aejpb4641R . . . . . . . अपऩलधथी / Appellant बनाम / V/S Asstt. Commissioner Of Income Tax, Central Circle-2, Pune . . . . . . . प्रत्यथी / Respondent

For Appellant: Shri M. K. Kulkarni & Smt. J. R. ChandekarFor Respondent: Shri B. Koteswara Rao

Section 132Section 143(3)Section 153ASection 250Section 254Section 44A

Shri Darashansingh A. Bindra, Nashik vs. Assistant Commissioner of Income-Tax, Centaral Circle -2, Nashik

ITSSA 42/PUN/2022[2002-03]Status: DisposedITAT Pune06 Jul 2023AY 2002-03

For Appellant: Shri M. K. Kulkarni & Smt. J. R. ChandekarFor Respondent: Shri B. Koteswara Rao

Section 132Section 143(3)Section 153ASection 250Section 254Section 44A

Jagdishsingh A. Bindra, Nashik vs. Asstt. Commissioner Income-Tax, Central Circle-2, Nashik

ITSSA 41/PUN/2022[2002-03]Status: DisposedITAT Pune06 Jul 2023AY 2002-03

For Appellant: Shri M. K. Kulkarni & Smt. J. R. ChandekarFor Respondent: Shri B. Koteswara Rao

Section 132Section 143(3)Section 153ASection 250Section 254Section 44A

Anil Sharma, New Delhi vs. ITO, Ward- 36(2), New Delhi

In the result, the appeal is allowed

ITA 3171/DEL/2018[2008-09]Status: DisposedITAT Delhi17 Nov 2022AY 2008-09

Bench: The First Appellate Authority & Thereafter Before The Tribunal.

Section 133(6)Section 44ASection 68

Manish Periwal, Kolkata vs. PCIT-9, Kolkata

In the result, the appeal of the assessee is allowed

ITA 275/KOL/2021[2016-17]Status: DisposedITAT Kolkata21 Sept 2022AY 2016-17

Bench: Shri Rajpal Yadav, Vice-(Kz) & Shri Rajesh Kumar

Section 139(4)Section 143(3)Section 263Section 44A

Shri Shri Devendra Singh Dhot, Korba(Cg) vs. The Income Tax Officer, Ward 1, Korba(Cg)

ITA 256/BIL/2016[2011-12]Status: DisposedITAT Raipur08 Sept 2022AY 2011-12

Bench: Shri Ravish Sood & Shri Arun Khodpiaआयकर अपील सं. / Ita No.256/Rpr/2016 "नधा"रण वष" / Assessment Year : 2012-13 Shri Devendra Singh Dhot, Plot No.181, T.P Nagar, Korba (C.G.) Pan : Afypd9079H .......अपीलाथ" / Appellant बनाम / V/S. The Income Tax Officer, Ward-1, Korba (C.G.) ……""यथ" / Respondent

For Appellant: Shri Y.K Mishra, CAFor Respondent: Shri G.N Singh, Sr. DR

Section 147Section 148Section 44A

Kishor Indurao Nikam, Karad vs. Tax Recovery Officer, Satara

Appeal is dismissed

ITA 540/PUN/2021[2009-10]Status: DisposedITAT Pune17 Aug 2022AY 2009-10

For Appellant: Shri M.K. KulkarniFor Respondent: Shri Piyush Kumar Singh Yadav

Section 143(3)Section 234ASection 44ASection 69A

Jitendra Gupta, Surajpur vs. Pr. Commissioner of Income Tax-1, Raipur

The appeal of the assessee is dismissed, in terms of aforestated observation

ITA 56/RPR/2021[2015-16]Status: DisposedITAT Raipur21 Apr 2022AY 2015-16

Bench: Shri Ravish Sood & Shri Jamlappa D Battullआयकर अपील सं. / Ita No. : 56/Rpr/2021 कर िनधा"रण वष" / Assessment Year : 2015-2016 Jitendra Gupta Prop. : M/S Maa Vaishnav Goods Carrier, Salka, Aghina, Surajpur, (C.G.) Pan : Arbpg 1102 H . . . . . . . अपीलाथ" / Appellant बनाम / V/S Pr. Commissioner Of Income-Tax, Raipur-1 (C.G.) . . . . . . . ""यथ" / Respondent }Kjk / Appearances Assessee By : Shri S. R. Rao Revenue By : Shri P. K. Mishra सुनवाई क" तारीख / Date Of Conclusive Hearing : 10/02/2022 घोषणा क" तारीख / Date Of Pronouncement : 21/04/2022 आदेश / Order Per Jamlappa D Battull, Am; The Present Appeal Of The Assessee Assailed Against The Revisionary Order Of Principal Commissioner Of Income Tax-Raipur-1 [For Short “Pcit”] Passed U/S 263 Of The Income Tax Act, [For Short “The Act”] Vide Order Dt 09/03/2021 For The Assessment Year [For Short “Ay”] 2015-2016, Which In Turn Emanated Out Of The Assessment Order Dt 28/11/2018 Passed By The Assessing Officer [For Short “Ao”] U/S 143(3) R.W.S. 147 Of The Act.

For Appellant: Shri S. R. RaoFor Respondent: Shri P. K. Mishra

Section 139Section 143(3)Section 148Section 263Section 263(1)Section 44A

Shri Ashfhaque Quamar, Surguja vs. Pr. Commissioner of Income Tax-1, Raipur

In the result, appeal of the assessee is allowed in terms of our aforesaid observations

ITA 83/RPR/2021[2015-16]Status: DisposedITAT Raipur06 Apr 2022AY 2015-16

Bench: Shri Ravish Sood & Shri Jamlappa D Battullआयकरअपीलसं. / Ita No. 83/Rpr/2021 "नधा"रणवष" / Assessment Year : 2015-16 Ashfhaque Quamar Mominpura, Ambikapur, Dist. Surguja (C.G.) Pin-497 001 Pan : Aagpq1026N .......अपीलाथ" / Appellant बनाम / V/S. The Pr. Commissioner Of Income Tax, Raipur-1 (C.G.) ……""यथ" / Respondent

For Appellant: Shri S.R. Rao, ARFor Respondent: Shri P.K. Mishra, DR

Section 143(3)Section 147Section 263Section 44A