S. 45:Capital gains- Short term capital loss -Sale of shares -Alleged bogus sales -Shares traded on BSE -No independent enquiry conducted by AO regarding rigging up of the price of shares by the Assessee or his broker –Loss is allowed to be set off against capital gains.
S. 44AD: Presumptive basis -Sale of milk – Computation of Profits and gains of business on presumptive basis- Return not filed -Below taxable income -Directed to add 8 % of the turnover. [S.139(1)]
S.43B: Deductions on actual payment – Deductions under the section for interest paid on loans to banks are allowable if the payments are made by the due date for filing income tax returns. [S.37(1), 139(1)]
S. 36(1)(iii) :Interest on borrowed capital – Addition made are unjustified as the balances reflect business transactions, & not loans and advances. [S.37(1)]
S. 35DD: Amortisation of expenditure -Amalgamation -merger expenses -whether the year in which the High Court order was received can be treated as the 1st year from which the merger expenses can be claimed u/s 35DD and allow to claim the said expenses in next 4 AYs -Held yes.
S. 32 : Depreciation -Goodwill -an intangible asset, qualifies for depreciation under the section, in acknowledgment of its value and impact on a company’s financial performance.
S. 28(i) : Business loss Bad debt – Non-recovery of part of an amount advanced towards purchase of property -Written off in profit and loss account and claimed as deduction while computing income –business loss.[S. 36 (1)(vii), 37(1)]
S. 14A : Disallowance of expenditure -Exempt income – The provisions of the section are not applicable when the Assessee has not claimed any exempt income.[R. 8D]
S. 14A: Disallowance of expenditure -Exempt income -Not recording of satisfaction- Disallowance is not justified.[R.8D]
S. 13 : Denial of exemption-Trust or institution-Investment restrictions – The transaction for purchase of land was a genuine and commercial transaction therefore, the provisions outlined in section 13(2)(a) do not apply to it. [S.11, 12A, 13(1)(c), 13(2)(a)]