S. 43CA : Transfer of assets-other than capital assets-Full value of consideration-stock in trade-Agreement value–Stamp valuation-Provision introduced with effect from 1-4-2014 for deeming consideration received on sale of goods/assets on basis of stamp duty valuation would be applicable prospectively-Rejection of books of account is held to be not justified. [S.50C, 145]
S. 43B : Certain deductions on actual payment –Bonus-Allowable as deduction in the year of payment.[ S.37(1) ]
S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability – Matter remanded to the AO consider the evidences and pass the order. [S. 260A]
S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable-Payment made by the assessee firm to three sub-contractors out of 21 work contracts given by it was to the relatives of the partners of the firm-20% disallowance is held to be justified. [S. 37(1), 40A(2)(b)]
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Second proviso to S.40(a)(ia) inserted by the Finance Act, 2012 is declaratory and curative in nature and it has retrospective effect from 1st April 2005, being the date from which sub-cl.(ia) of S. 40(a) was inserted–No disallowance can be made for failure to deduct tax at source. [S. 201(1), 271C]
S. 40(a)(ia) : Amounts not deductible-Deduction at source– Subsidiary company-Reimbursement of expenses-Not liable to deduct tax at source-No disallowance can be made. [S. 195]
S. 37(1) : Business expenditure–Capital or revenue–Proportionate rent and lease premium-Held to be revenue expenditure.
S. 37(1) : Business expenditure–Capital or revenue–Foreign currency convertible Bond-(FCCB) issuing expenses–Held to be allowable as revenue expenses.
S. 37(1) : Business expenditure–Raising loan-Capital or revenue-Expenses for issuing Foreign Convertible Bond only on interpretation of DTAA-Question of law. [S. 260A]
S. 37(1) : Business expenditure-Joint Venture with State Industrial Corporation-Subsequent winding up of joint venture company — Amount paid as guarantor under the Scheme of BIFR is held to be allowable as deduction.