S. 43B : Deductions on actual payment-Interest on term loan paid to bank allowable u/s 43B(d) even if not debited to P&L account and not claimed in return/revised return-NBFC-Interest on NPAs not taxable on accrual-Interest on recurring deposits created as sinking fund taxable only on maturity where both principal and interest were payable only on maturity and entire interest was offered in year of maturity-Delay of 385 days-SLP of revenue dismissed on account of delay as well as on merits. [S. 43B(d), 43D, Art. 136]

S 37(1):Business expenditure-Capital or revenue-Depreciation-Interest-Replacement of old machinery, pollution-free, is revenue expenditure-Fly Ash handling system 100 per cent depreciation allowed-Interest provision-Not allowable as paid. [S. 32, 43B]

S. 37(1) : Business expenditure-Non-resident-Temporary lull in business and not cessation-Mere absence of subsisting contract or office in India not decisive-Continuous correspondence and bidding activity showed business connection in India-Business expenditure allowable-Set-off against interest on tax refund permissible-Unabsorbed depreciation allowable to be carried forward and set off. [S. 2(13), 4, 5(2), 9(1)(i), 32(2), 71]

S. 36(1)(iii) : Interest on borrowed capital-Investment company-Commercially expedient-Difference between interest received and paid by assessee for purpose of business-Deletion of disallowance was affirmed-SLP dismissed. [S. 37(1), Art. 136]

S. 35 : Expenditure on scientific research-Matter was pending before competent Authority-Order of Tribunal allowing the deduction was set aside. [S. 35(1)(v), 260A]

S. 32 : Depreciation-Dumpers-Put to use for 180 days-Failure to produce evidence-Not entitle for full depreciation-Order of Tribunal set aside. [S. 254(1)]

S. 28(i) : Business income-Income from house property-Lease of property-Business of purchasing and renting properties-No other source of income-Income derived from letting out properties assessable under head ‘income from profits and gains of business’, and not as income from house property. [S. 22, 23, 56 (2)(iii)]

S. 23 : Income from house property-Annual value-Municipal rateable value-Only when annual value under municipal laws so determined had close proximity with relevant assessment year, in case of significant gap between municipal rateable value and annual rent of property, Assessing Officer could make independent enquiry under section 23(1)(a)-Security deposit-Nominal licence fee-Assessing Officer was justified in fixing annual rental value by taking into consideration twin factors of comparable rents and notional interest on security deposits-Developer’s letter and certificate from premises society cannot be treated as cogent evidence for fixation of municipal rateable value-Property given on rent-Standard rent of premises-Concept of standard rent applicable only to statutory tenant enjoying protection from rent escalation an eviction-Assessee’s premises were not governed by provisions of rent control legislation-Assessing Officer not bound to accept Municipal Rateable Value and can take in to consideration annual rent premises capable of fetching-Notional interest receivable on security deposit cannot be sole factor for deciding annual letting out value of property-Comparable instance and return on overdraft facility taken by assessee from lessee Bank to arrive at sum of reasonable rent-Order of Tribunal affirmed.
[S. 22, 23(1)(a), 260, Bombay Rents, Hotel and Lodging House Rates Control act, 1947]

S. 12AA : Procedure for registration-Trust or institution-Rejection of registration after prescribed period of six months-Cannot result in deemed grant of registration-Tribunal not justified in granting assessee deemed registration. [S. 12A, 12AA(2)(iii), 260A]

S. 10(26AAA) : Income of Sikkimese-Individual-Income not included-Definition of ‘Sikkimese’ as amended by Finance Act, 2023-Definition limited to Income-tax Act only-Does not affect rights under Article 371F(k) of Constitution of India-PIL dismissed. [Art. 226, 371F(k)]