S.40(a)(iib):Amounts not deductible- Gallonage fee, licence fee, shop rental and surcharge on sales tax- Issue being debatable matter was remanded to CIT (A).
S.40(a)(iib):Amounts not deductible- Gallonage fee, licence fee, shop rental and surcharge on sales tax- Issue being debatable matter was remanded to CIT (A).
S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident – Fes for technical services -Service of market survey rendered by foreign agents is only incidental to function of commission agent, it cannot be regarded as FTS- Not liable to deduct tax at source [ S.9(1)(vii), 40(a)(ia),195 ]
S. 36(1)(va) :Contribution approved gratuity fund -Employer’s contribution is allowable as deduction if the payment is made before due date of filing of return u/s 139(1)- Deduction in respect of employees’ contribution to ESI and EPF is available only if same is paid within due date as specified under relevant statutes.[ S. 2(24)(x), 43B , 139(1) ]
S. 36(1)(iii) :Interest on borrowed capital -Construction business-Stock in trade – Interest paid on borrowings for purchase land -Allowable as revenue expenditure.
S. 32 : Depreciation – Charitable Trust -Depreciation is allowable Computation provision did not discriminate between a charitable Trust and other assesses.[ S.11, 12A, 263 ]
S.32: Depreciation- Stay order from Court- Factory could not run due to stay order of Court- Depreciation cannot be disallowed.
S. 23 : Income from house property – Annual value – Interest free security deposit – Interest offered as income from other sources-Notional interest on interest free deposit cannot be considered to determine annual letting value of property- Notional addition would amount to double taxation .[ S.22, 23(1)(b) ]
S. 13 : Denial of exemption-Trust or institution-Investment restrictions -Trust was restrained from converting shares held by it in private limited company to other forms of permissible investment by virtue of restraint order of High Court in case of settlors from whom it had received shares, it could not be held liable for violation of provisions of S. 11(5) read with S. 13(1)(d) for holding shares for more than prescribed period- Exemption cannot be denied .[ S.11(5) ,113(1)(d) ]
S. 11 : Property held for charitable purposes – Accumulation of income did not exceed 15 per cent of income -Entitle exemption [ S.12A, 263 ]
S. 10A : Free trade zone – For computing deduction if export turnover is arrived at after excluding certain expenses, said expenses should also be excluded from total turnover.