S. 41(1) : Profits chargeable to tax-Remission or cessation of trading liability-Waiver of loan-Amount of loan was never claimed as expenditure nor as trading liability in any previous year-Waiver of such loan would not attract provisions of section 41(1) or section 28(iv). [S.28(iv),36(1)(iii), 41(1)(a)]
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Rice trading-Failure to demonstrate any business expediency-Directed to estimate profit on disputed purchases at 10 per cent and make additions.[R.6DD]
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Business expenditure-Reimbursement of medical expenses and tea allowances incurred by employees-Performance of their duties during banking hours-Allowable as deduction. [S. 37(1)]
S. 40(a)(ia) : Amounts not deductible-Deduction at source-Amendment made in section 40(a)(ia) by Finance (No. 2) Act, 2014 is curative in nature-Disallowance under section 40(a)(ia) had to be restricted to 30 per cent instead of 100 per cent. [S.194C]
S. 37(1) : Business expenditure-Club membership fee-One-time entry fee paid by individual assessee for club membership could not be allowed as business expenditure-Adjustment is affirmed-Only corporate membership one time membership fee is allowable. [S.143(1)(a)]
S. 37(1) : Business expenditure-Business of civil construction- Labour charges-Failure to support evidence-Restricted to 50 per cent of labour expenses.
S. 37(1) : Business expenditure-Expenditures towards road and bridge construction Commercial expediency-Allowable as deduction allowable as deduction though no income shown during the year. [S. 145]
S. 37(1) : Business expenditure-Community development expenses-Allowable as business expenditure.
S. 37(1) : Business expenditure-Gifts-Customers on occasion of new year and festivals-Allowable as business expenditure-Gifts given to directors and to government employees would not be allowed as expenses.
S. 37(1) : Business expenditure-Shortfall in PF- its-statutory-liability towards Employees Provident Funds Act, payment made towards maintenance of statutory interest rate was an allowable expenditure. [Provident Fund Rules, 17]