S.37(1): Business expenditure-Seizure of Truck-Penalty, fine, etc.-Levy of penalty under State VAT law-Issue pending before Commr. of Commercial Taxes-Not allowable as deduction-Liberty is given to the assessee to file application under s. 154 in case the issue pending before the first appellate authority is decided in favour of the assessee or it is adjudicated as compensation or compounding.[S. 37(1), Explantion 1, 154]
S.14A : Disallowance of expenditure-Exempt income-salaries paid to the employees of the treasury department-Allocaation of eexpenses on the basis of area occupied by the department-Held to be reasonable-Book profit-Adjustment of disallowance under s. 14A is not required to be made in the book profit for MAT liability. [S.115JB, R.8D]
S. 12AB: Procedure for fresh registration-Religious trust-Trust for the benefit of particular community-Jain community and to propagate Jainism-Order rejecting the application is affirmed. [S. 11, 12, 12AB(4) 13(1)(b)]
S. 11 : Property held for charitable purposes-Revised claim by rectification application-Filed within the time prescribed u/s 139(5)-No intimation was issued u/s 143(1)-Denial of exemption is not valid.[S. 139(5) 143(1), 154(8)]
S. 10 (23C): Educational institution-Wrong sub section is mentioned in the return-Mistake of counsel-Exemption is allowed-Non foling of audit report-Not applicable to university-Entitle to eexxemption-Delay of 691 aand 706 days-Mistake of counsel-Delay is condoned. [S. 10(23C)(iiiab), 12A, 44AB,253(5), 254(1)
S. 9(1)(i): Income deemed to accrue or arise in India-Business connection-Not dependent agent-No substantial transaction-Income is not chargeable to tax in India-Fees for technical services-Reimbursement of salaries of seconded employees-Tax deducted at source-issue is remitted to the AO for fresh adjudication as per law-DTAA-India-USA.[S.90, Art, 12(4)]
S. 5 : Scope of total income-Income-Accrual-Notional interest-Waiver of interest on Compulsorily Convertible Debentures-Interest waived before the end of financial year-Commercial expediency-No addition can be made on account of interest income on notional basis. [S. 4, 143(3) 145]
Indian Succession Act, 1925
S. 63: Execution of unprivileged wills – Registered will – Presumption of due execution -Registered will carries a strong presumption of genuineness and due execution under law -Oral family settlement – Testamentary disposition upheld where will is registered and signature admitted – Separate possession corroborates arrangement – High Court erred in treating property as joint family asset – Trial Court’s decree restoring full title and injunction in favour of legatee upheld.[ Hindu Succession Act, 1956, S. 6, Indian Evidence Act, 1872, 68, 69; CPC, 1908, Order 22 Rule 10. ]
S. 13A:Political parties – Delay in filing return – Cash donations exceeding limit – Strict compliance required –Not entitle to exemption if the return is filed after due date – Exemption denied – Appeal dismissed . [S. 13A(d), 139(1), 139(4), 139(4B), 143(3), Representation of People Act, 1951, S. 29A]
S. 271(1)(c) : Penalty – Concealment – Information from sales-tax authorities – Bogus purchases – Hawala parties – Estimated additions – Quantum restricted to 12. 5% of bogus purchases – Penalty is leviable . [ S.69C ] S. 271(1)(c) : Penalty – Concealment – Information from sales-tax authorities – Bogus purchases – Hawala parties – Estimated additions – Quantum restricted to 12. 5% of bogus purchases – Penalty is leviable . [ S.69C ]