S. 37(1): Business expenditure-Research programme-Payment for employees’ training and research-Expenditure incurred wholly for business purposes-Allowable-Advertisement and brand promotion expenses-Payment for use of established brand and designs-Revenue expenditure-Sponsorship expenses-Assessee failed to establish business purpose-Disallowance upheld.[S. 32]

S. 32 : Depreciation-Intangible assets-Goodwill-Business acquired on slump sale-Excess consideration representing business commercial rights-Depreciation allowable.

S. 32: Depreciation-Assets acquired from associated enterprise-Depreciation allowed in earlier years-Depreciation cannot be denied in subsequent year.

S. 28 (1): Business income-Duty drawback-Taxable in year of actual receipt-Matter remanded to avoid double taxation.

S.14A: Disallowance of expenditure-Exempt income-Sufficient interest-free funds available-No disallowance warranted. [R. 8D]

S.14A: Disallowance of expenditure-Exempt income-Dissatisfaction of Assessing Officer must be based on cogent reasons-Mere observation that disallowance is meagre is insufficient. [R. 8D]

S. 12AA: Procedure for registration-Trust or institution-Cancellation-Reference by Assessing Officer after conclusion of assessment proceedings-Reference to Principal Commissioner without jurisdiction-Cancellation of registration held invalid–Provision inserted with effect from 1-4-2022-Not applicable to earlier assessment years-Show-cause notices and cancellation order quashed-Direction that cancellation would survive irrespective of finding on specified violation-Colourable exercise of power-Order quashed. [S. 12AB(4), 127(2), 143(3)]

S. 10AA: Special Economic Zones-Newly established units-Allocation of head office expenses-Common expenses having direct nexus with eligible unit-Allocation in ratio of turnover held justified-Transfer of goods to eligible unit-Market value-Notional gross profit adopted by Assessing Officer-Matter remanded [S.10AA(9), 80-IA(8)]

S. 10AA : Special Economic Zones-Export-Interest income forming part of business profits-Eligible for deduction.

S. 10A: Free trade zone-Export profits-Deduction-Export proceeds realised in convertible foreign exchange-Matter remanded for verification-Communication expenses to be excluded from both export turnover and total turnover-Foreign exchange fluctuation gain-Already offered to tax-Matter remanded to avoid double taxation.[S. 144C]