S. 40(a)(i): Amounts not deductible-Deduction at source-Non-resident-Reimbursement of professional fees and expatriate salary costs to a foreign AE is not liable to TDS where payments do not satisfy the ‘make available’ test under the DTAA and salary costs are reimbursed on a cost-to-cost basis without any profit element.-Not liable to deduct tax at source [S. 9(1)(i), 195]
S. 37(1): Business expenditure-Employees’ Stock Option Plan (ESOP)-Discount on ESOP-Ascertained liability-Deduction allowable.
S. 35: Expenditure on scientific research-Weighted deduction under section 35(2AB) is not allowable in the absence of approval of the in-house research facility and prescribed statutory compliances. [S. 35(1)(iv), 35(2AB)]
S. 14A: Disallowance of expenditure-Exempt income-Administrative expenses-Rule 8D-Disallowance computed by Assessing Officer upheld. [R. 8D(2)(iii)]
S.14A: Disallowance of expenditure-Exempt income-No exempt income earned-No disallowance permissible.[R. 8D]
S.14A: Disallowance of expenditure-Exempt income-Disallowance under section 14A cannot exceed the exempt income earned during the year-Book profit-Minimum Alternate Tax-Disallowance computed under section 14A read with rule 8D cannot be added while computing book profit under section 115JB. [S. 11JB, R. 8D]
S. 13: Denial of exemption-Trust or institution-Investment restrictions-Exemption cannot be denied on entire income-Disallowance restricted to income from impermissible investment. [S. 11, 12, 13(1)(d)]
S. 11: Property held for charitable purposes-Development of industrial estates constitutes advancement of an object of general public utility-Exemption cannot be denied. [S. 2(15), 12]
S. 10A: Free trade zone-Telecommunication expenses excluded from export turnover must also be excluded from total turnover. S. 10A.
S.10 (1) : Agricultural income-Capital asset-Agricultural land-Land situated within Gram Panchayat-Population below prescribed limit-Rural agricultural land not a capital asset-Estimation-Agricultural operations established by revenue records-Absence of regular books-Fair estimation of income justified.[S. 2(14)(iii),132(4), 153A]