S. 40(a)(ia) : Amounts not deductible – Deduction at source – Reimbursement of expenses – Federation of International Hockey for arranging for provisional services connected with event of Hockey World Cup–Not liable to deduct tax at source. [S. 9(1)(i), 195]
S. 37(1) : Business expenditure-Consultancy services – Foreign travelling expenditure of representative – Allowable as business expenditure.
S. 69 : Income from undisclosed sources—Bogus purchases- Purchases were not part of sales shown by the assessee- Bogus purchase for suppressing the profits of the business- Addition is held to be justified.
S. 68 : Cash credits—Unsecured loans-Explanation was not satisfactory – Addition is held to be justified.
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability-Co-Operative bank -Transfer to reserve or provision made in earlier years–Taxable as income. [S. 80P(4)]
S. 37(1) : Business expenditure–Capital or revenue-Pre-Operative expenses -Expenditure incurred on estimate basis could be reduced from dividends-Transfer pricing adjustment to consultancy charges-High Court has failed to independently evaluate the merits-Matter remanded to High Court for fresh consideration. [S. 80M, 92C]
S. 36(1)(iii) :Interest on borrowed capital – Interest-free funds available with assessee is sufficient to meet investment — Presumption is that investments in subsidiaries were out of interest free funds — No disallowance can be made.
S. 32 : Depreciation- Prior to insertion of Explanation 5 to S.32 of the Act- Optional and could not be thrust upon-Matter remanded.
S. 12AA : Procedure for registration –Trust or institution-High Court directing inquiry allegations regarding irregularities committed by charitable institution – During pendency of inquiry registration cannot be cancelled. [S. 11]
S.68: Cash credits- Bogus capital gains-Penny stocks-Plea that opportunity to cross-examine the witness was not given & investigation report was not furnished is not relevant if assessee unable to successfully controvert findings of the AO and such argument was never made before the lower authorities-Addition is held to be justified [ S. 10(38).45 ]