S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Income deemed to accrue or arise in India-Fees for technical services-Shipment clearing and forwarding charges-Payment is not chargeable to tax in India-Disallowance is deleted-Article 12 of OECD Model Convention. [S.9(1)(vi), 195]
S. 40(a)(i) : Amounts not deductible-Deduction at source-Non-resident-Engaged in providing services and facilities relating to exploration and exploitation of mineral oil and natural gas Interest-Not taxable in India.[DTAA-India-Singapore [S. 9(1)(1), 44BB, 195, Art. 5, 7,]
S.37(1): Business expenditure-Sales promotion expenses-Construction project-Allowable as revenue expenditure-AS-7 was purely effective for contractor in construction, not for developers, question of capitalizing project cost of sale promotion was unjustified.[S.145, AS-7]
S. 37(1) : Business expenditure-Business loss-Advance for purchase of business-Failure to supply goods-Trade advances-Advance written off allowable as business loss. [S.28(i), 36(2), 37 (1)]
S.37(1): Business expenditure-Employee Stock Option (ESOP)-Disallowance is deleted.
S. 36(1)(iii) : Interest on borrowed capital-Advanced funds for commercial purposes without charging interest-Advanced from interest free funds-Order of CIT(A) confirming the disallowance is deleted.
S. 32AC: Investment in new pant or machinery-Installation of machinery-Blending of lube oil tantamounts to manufacture or production-Entitle to deduction.
S. 32 : Depreciation-Computer software-Depreciation is allowable at rate of 60 per cent.
S. 24 : Income from house property-Deductions-Interest on borrowed capital-Interest on housing loan-Let-out property-When the property is let out there is no maximum deduction on interest on borrowed capital Interest on housing loan allowable as deduction under section 24 for let-out property, based on bank certificate and consistent claims in previous years.[S. 22]
S.14A : Disallowance of expenditure-Exempt income-Interest-Own fund were much higher than investments that yield exempt income-Order of CIT(A) deleting the addition is affirmed. [R.8D(2)(ii)]