S. 43B : Deductions on actual payment-Any sum received from employees-Addition unsustainable where employee’s contribution to ESI is deposited after due date of the fund but before the due date of filing return of income u/s.139(1) of the Act-Precedent-Lower Authorities are bound by the decision of Jurisdictional High Court. [S. 36(1) (va),139(1), 143(1)(a), 154]
S. 43B : Deductions on actual payment-Employee’s contribution-Provident fund and ESI-Payment made before due date of filing of return-Amendment by the Finance Act, 2021 are applicable only from 1st April, 2021-Entitle to claim deduction. [S. 36(1)(va)]
S. 43(6) : Written down value-Depreciation-Forfeited on cancellation of agreement for sale of assets-Dubious transaction-Rightly reduced from the WDV of assets. [S. 32, 51, 56(2)(ix)]
S. 43(5) : Speculative transaction-Sauda settlement for want of substantiation-Loss on account of reversal of oral contract for supply of wheat-Speculative loss-loss cannot be set off against business income. [S. 28]
S. 43(5) : Speculative transaction-Speculation loss-Profit from money market transactions-Gains arising out of speculative transactions are eligible to be set-off against loss arising out of share transactions. [S. 28, Expln. 2]
S. 43(1) : Actual cost-Depreciation-Expenses on rent and under other heads incurred during construction of hotel building prior to commencement of business is to be capitalised and depreciation is allowable. [S. 32]
S. 40A(9) : Expenses or payments not deductible-Bonus to employees-Payments to external agencies for employees welfare-Allowable as deduction u/s. 37(1) of the Act. [S. 37(1)]
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Freight payments made to transporters for purchase of paddy-Disallowance sustained.
S. 40(b)(iv) : Amounts not deductible-Partner-Interest-Deed providing for payment of interest-Assessing Officer to calculate interest payable to partner in terms of section and directed to allow.
S. 40(a)(ii) : Amounts not deductible-Rates or tax-Education Cess-Allowable as business expenditure. [S. 37(1)]