S. 54 : Capital gains – Profit on sale of property used for residence –
Depositing gains in capital gains accounts scheme before due date for filing return under Section 139(4) of the Act and purchasing new house within two years of transfer -Mere non-compliance with procedural requirement- Denial of exemption is not justified [ S.45 , 54(2) , 54F , 139(1) , 139(2) ]
S. 50C : Capital gains – Full value of consideration – Stamp valuation
Transfer of litigated property — Directed to compute capital gains based on actual sale consideration received – Not established that the property was acquired – Denial of exemption is justified [ S.54F ]
S.43B: Deductions on actual payment – Provident Fund and Employees’ State Insurance Contribution —Making contribution before due date for filing return- Allowable as deduction.[ S.36(1)(va) ]
S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – Transfer pricing – Royalty – Transfer pricing provision is specific provision – Assessing Officer was required to compare the royalty expenses paid in the case of the similar products by other companies during the relevant period- Disallowance is held to be not valid [ S.92C ].
S. 40(a)(ii) : Amounts not deductible – Rates or tax – Education cess and higher and secondary education cess — No disallowance can be made .[ S.147 , 148 ]
S. 40(a)(ia): Amounts not deductible – Deduction at source –
Placement fees under contract between Cable operators —Neither commission nor royalty – Not liable to deduct tax source – No disallowance can be made . [ S.9(1) (vi ), 194C, 194J ]
S. 40(a)(i) : Amounts not deductible – Deduction at source -Non-resident -Reimbursement of salary cost- No disallowance can be made [ S.192 , 195 ]
S. 38 : Building – Partly used for business -Business income — Income from house property — Entitled to proportionate deduction for remaining period of seven months of repairs and maintenance [ S. 22, 38(2)]
S. 37(1) : Business expenditure — Motor car, conveyance and miscellaneous expenses — Ad hoc disallowance- Books of account not rejected – Disallowance is held to be not justified [ S.145 ]
S. 37(1) : Business expenditure — Motor car, conveyance and miscellaneous expenses — Ad hoc disallowance- Books of account not rejected – Disallowance is held to be not justified [ S.145 ]