S. 37(1) : Business expenditure – Capital or revenue – Payment to for the purpose of having continuous supply of limestone as a raw material – Held to be capital expenditure – Order of Tribunal directing for the payment to be amortised for a period of 8 years is held to be not valid – Question is answered in favour of the revenue . [ S.145 ]
S. 36(1)(iii) :Interest on borrowed capital – Allowable as deduction though capitalised in the books of account .[ S. 43(1)Ex.8 ,145 ]
S.28(i): Income from business – Income from house property – Exploitation of property commercially by way of complex commercial activities – Rental income is to be taxable as income from business – Not as Income from House Property. [ S.22 ]
S. 14A : Disallowance of expenditure – Exempt income – Rule 8D is not applicable to assessments prior to AY. 2008 -09 [ R.8D ]
S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income declared during the year no disallowance can be made .[ R.8D(2) (ii) ]
S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income declared during the year no disallowance can be made .[ R.8D(2) (ii) ]
S. 12A : Registration –Trust or institution- Amount collected by the assessee as donation from the students was within the permissible limit of 15% – Denial of exemption is held to be not valid [ S.11, 12AA(3), 13(1)(d) ]
S. 11 : Property held for charitable purposes – Income applied for the object of the Trust -Promotion of sports, games and providing recreation facilities to the public at large and to the members in particular and therefore receipts on account of compensation from decorator against gymkhana function, miscellaneous income and compensation from caterer (restaurant) cannot be construed as activities in the nature of trade, commerce or business for the purpose of the proviso to S. 2(15) of the Act- Capital expenditure allowed as application of income – Depreciation is allowable [ S.2(15), 12 , 13, 32 ]
S. 11 : Property held for charitable purposes – Carry forward of deficit – Allowed to be set off against income of the subsequent year . [ S. 12,32 , 72 ]
S. 10A : Free trade zone – Deduction to be computed before adjusting business loss or Depreciation [ S. 10B, 70, 71, 72 , 74,80IA(5), 80IA(6) ]