S. 270A:Penalty for under -reporting and misreporting of income – Penalty notice was only regarding underreporting of income- Penalty levied u for misreporting of income and under reporting – Not specifying the specific charge – Salary received is shown in the return – Penalty of Rs 44, 90,048 levied under section 270A(8) of the Act is deleted . [ S.139(9), 192 , 270A(8),270A(9)(e), 274 , Form No. 26AS ]
S.37(1): Business expenditure-Product development expenses-Allowable as revenue expenditure-Liquidated damages-As part of contractual obligation with its customers for delayed supply of goods or delayed completion of projects-Allowable as deduction-Employees’ contribution to PF and ESI would not be allowable in case of assessee-employer if it was remitted beyond due date prescribed under respective Acts.[S. 36(1)(va)]
S.37(1): Business expenditure-Business promotion expenses-Gifts distributed at time of annual general meeting to milk producers-Allowable as deduction-Limited return on share capital-1% of share capital-Not allowable as deduction. [Companies Act, 1956, S.581A, 581 E]
S. 36(1)(iii) :Interest on borrowed capital-Loan raised from bank for repayment of capital-Allowable as deduction.
S. 35AD : Deduction in respect of expenditure on specified business-Hospital-Survey-Revised return-Deduction claimed in revised return is allowable. [S.35AD(2), 133A, 139(5)]
S.35A : Acquisition-Patent rights-Copy rights-Trade mark-Merger-Eligible to claim deduction.
S. 35 : Expenditure on scientific research-Approval was pending-Issue was restored to Assessing Officer.[S.35(2AB), Form No 3CM]
S. 32 : Depreciation-Carry forward of depreciation-New plant and machinery less than 180 days-Entire additional depreciation cannot be allowed-Balance unclaimed amount can be claimed in subsequent assessment year.
S. 32: Depreciation-Merger-Assessing Officer should allow depreciation on basis of computation made by assessee and not to reduce WDV on basis of notional amount of depreciation.
S. 32 : Depreciation-Computer software-Block-Software and computer as one block, issue was to be remitted back to Assessing Officer to decide as per findings returned by Tribunal. [S. 2(11)]