S. 119 : Central Board of Direct Taxes-Circular-Condonation of delay of 18 days in filing of return-Beyond control of assessee-CBDT’s Circular No. 13/2023 dt. 26–07–2023-Delay in filing return of income is condoned. [S.80AC(ii) 80P(2) (a)(i), 119(2)(b), 139(1), 143(1),143(3), Art. 226]

S. 80P: Co-operative societies-Deduction-Surplus profit earned from the business of providing credit facilities to the members kept in the bank-Interest income earned therefrom is eligible for deduction under section 80P of the Act.[S.80P(2)(a),80P(2)(d)]

S. 69 : Unexplained investments-Bogus purchases-Red flagged by the Sales Tax Department –Quantity tally-No defects in the books of account-No disallowance warranted without bringing on record any other evidence to prove that the purchases made by assessee were not genuine-Order of Tribunal deleting the addition is affirmed. [S.68]

S. 68 : Cash credits-Gift from third parties-Genuineness of gifts had not been proved-Preponderance of probability-Order of Tribunal is affirmed. [S. 260A]

S. 43A : Rate of exchange-Foreign currency –Capital or revenue-Tribunal allowed foreign exchange losses towards the loan taken for acquisition of assets within India-However, Tribunal failed to analyze whether the expenditure in question could not be regarded as capital expenditure-Matter was to be remanded to Tribunal for fresh consideration. [S. 37(1), 260A].

S. 40A(9) : Expenses or payments not deductible-Bonus to employees-Business expenditure-Contribution to employees welfare trust-Community services-Payments under a Memorandum of Settlement with the trade union-Expenditure not covered by Section 30 to Section 36, and expenditure made for purposes of business shall be allowed as business expenditure. [S. 37(1), 30 to 36]

S. 37(1) : Business expenditure-Capital or revenue-Professional and consultancy charges-Enduring nature, expenditure is capital in nature-Order of Tribunal is affirmed.[S.260A]

S. 37(1): Business expenditure-Compensation-Breach of contract-Real estate and land development-Agreement entered into by managing partner in his individual capacity-Terms and Conditions of the agreement relevant-Arbitral Award-Not allowable as business expenditure. [S. 145, 260A, Indian Partnership Act, 1932, S.14]

S. 37(1): Business expenditure-Banking business –Capital or revenue-Stock in trade-Broken period interest paid on the purchase of securities is revenue expenditure since securities constitute stock-in-trade. [S. 145, 260A]

S. 37(1) : Business expenditure-Foreign Exchange losses towards loan in nature of external commercial borrowings for acquisition of assets from outside India and from within India-The Tribunal failed to look at substance of expenditure and erroneously interpreted the provisions of Section 43A-Matter remanded back to the Tribunal for an effective adjudication of specific issue.[S.43A, 254(1), 260A]