S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -State Government scheme for deferment of sales tax and Treating amount as loan for specified period — Surplus on account of prepayment of loan —Amount not assessable as income [ S.4, 28(i) ]
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability -Waiver of loan — Neither the component of interest embedded therein nor the amount claimed as deduction earlier —Not assessable as business income
S. 40(a)(ia): Amounts not deductible – Deduction at source –
Failure to pay tax deducted at source- Amendment by Finance Act, 2010 allowing deduction of payment where tax deducted in subsequent year, or during previous year but paid after due date for filing return — Amendment retrospective- Disallowance is held to be not valid [ S.139(1) ]
S.37(1): Business expenditure — Expenditure on higher education of managing director of subsidiary company — Person becoming director after completion of higher Education —Not deductible.
S.37(1):Business expenditure — Capital or revenue – Interest paid for delay in allotment of shares for increasing share capital — Not allowable as revenue expenditure .
S.37(1):Business expenditure — Capital or revenue – Interest paid for delay in allotment of shares for increasing share capital — Not allowable as revenue expenditure .
S. 36(1)(vii) :Bad debt – — Assessee only to establish that debt written off in accounts — Not necessary to establish that debt in fact had become irrecoverable — Law after 1-4-1989-Winding up — Diminution in value of investment made by assessee in company in liquidation —Capital loss – Matter remanded to the Assessing Officer . [ S.46(2) ]
S. 36(1)(vii) :Bad debt -Law after 1-4-1989 — Not necessary to establish or prove that debt has become irrecoverable — Recording of debt as bad debt in books of account is sufficient. [ S.28(i)]
S. 36(1)(iii) :Interest on borrowed capital – Real estate business- Amount borrowed to purchase shares to expand business- Controlling interest – Interest allowable as deduction [ S. 37(1) , 57(iii) ]
S.28(i): Business income -Capital gains —Object of firm is to purchase and sell land -Profit from purchase and sale of land assessable as business income.[ S.45 ]