S 45: Capital gains-Rights entitlement not taxable in India-Short-term capital loss not to be set off against exempt gain- DTAA-India-Ireland [S.2(42A), 2(42B). 70, 71, 74 Art. 13(5), 13(6)]
S 45: Capital gains-Rights entitlement not taxable in India-Short-term capital loss not to be set off against exempt gain- DTAA-India-Ireland [S.2(42A), 2(42B). 70, 71, 74 Art. 13(5), 13(6)]
S. 41(1) : Profits chargeable to tax- Remission or cessation of trading liability-Lease deposit outstanding for several years-No cessation of liability-Addition deleted- Booking advances received in earlier years-No remission or cessation-Addition deleted. [S.28(i)]
S. 37(1): Business expenditure-Technology licensing agreement-Payment initially capitalised as intangible asset-Expenditure held allowable as revenue expenditure- Foreign exchange loss-Expenditure arising from same business agreement-Revenue expenditure allowable. [Expln. 3 to S. 32(1)]
S. 37(1): Business expenditure-Employees’ Stock Option Plan-Discount on issue of shares-Revenue expenditure allowable- Entertainment and guest house expenses-No finding that expenditure was not incurred for business-Disallowance deleted.
S. 35: Expenditure on scientific research- Normal deduction under section 35(1) not dependent upon DSIR quantification-Weighted deduction restricted to expenditure approved by DSIR. [S. 35(2AB), 37(1) R.6(7A)]
S. 32 : Depreciation-Lease transaction-Commercial expediency cannot be questioned-Depreciation allowable.
S. 28(va) : Business income- Cash or kind-Under an agreement- Non-compete fee-Negative covenant-Capital receipt-Amendment taxing such receipt prospective-Not taxable.[S. 4]
S. 28(i): Business income-Rental income-Maintenance charges received under separate arrangement-Taxable as business income and not as income from house property. [S. 2(13, 22 44AD]
S. 23: Income from house property- Annual value-Property remaining vacant throughout year-Notional annual value assessable- Mere inability to secure a tenant throughout the year does not preclude assessment of notional rental income. [S. 22, 23(1)(a)]
S. 17(2): Salary- Perquisite- Rent-free accommodation-Existence of concession is a jurisdictional fact-Rule 3 cannot be invoked without such finding-n Indian Institute of Technology-Not Central Government employer-Rule applicable to Central Government employees not attracted. [S. 15, 17(2)(ii), R. 3 of the Income-tax Rules, 1962]