S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable -775 Per Cent. increase in remuneration to Directors —Assessing Officer not pointing out comparables to demonstrate that salary paid to directors was excessive — No evasion of tax – CBDT circular No. 6-P dated July 6, 1968 is binding – No disallowance can be made [ S.40A(2)(b) ]
S.37(1):Business expenditure —Proportionate drop in vehicle maintenance account in profit and loss statement — Addition not tenable.
S. 36(1)(iii) :Interest on borrowed capital -Borrowed funds used for investment in shares for business purposes —Allowable as deduction [ S.37 (1) ]
S. 35 : Scientific research – Approval by department of Scientific and Industrial Research — No provision at relevant time requiring approval of expenses by department of scientific and industrial research – Amendment is not retrospective as it introduces additional condition and affects substantive rights of assessee – Delay of filing of appeal due to Covid- 19 Pandemic , was condoned . [ S. 35(2AB, 37 (1) )
S. 28(i) : Business loss – Goods lost due to burning — Estimate made per consumption and production of goods accurate — Addition made on estimate basis rejected . [ S.143 (3) ]
S .14A : Disallowance of expenditure – Exempt income – Not recording of satisfaction – Disallowance was restricted to sum claimed by assessee .[ R.8D ]
S .14A : Disallowance of expenditure – Exempt income – Interest – Interest paid on loans to be set off against interest income from term deposits [ R.8D ]
S. 12AA : Procedure for registration –Trust or institution- Non-payment of taxes not a criteria for denial of registration – Registration is directed to be granted .[ S. 11(1)(d), 12A, 139(4A )] S. 12AA : Procedure for registration –Trust or institution- Non-payment of taxes not a criteria for denial of registration – Registration is directed to be granted .[ S. 11(1)(d), 12A, 139(4A )]
S. 12AA : Procedure for registration –Trust or institution-Functioning from Temple premises – Matter remanded – Time limit for passing order granting approval — Period of six months to be calculated from end of month in which application received — Order with in limitation period [ S. 2(15), 80G R. 11AA ]
S. 10AA : Special economic zones – Additions- Bogus purchases — Enhanced profits- Eligible for deduction