S. 69C : Unexplained expenditure – Bogus purchases – Business of civil construction – Payment through banking channels – Order of Tribunal deleting the addition was affirmed. [S. 260A]

S. 69C : Unexplained expenditure-Contract business-Civil works for the State Government and semi-Government agencies. Failure to produce certain suppliers – Estimated net profit at 12. 5 Per cent on alleged bogus purchases – Order of Tribunal affirmed. [S. 37(1), 68, 145]

S. 69C : Unexplained expenditure-Bogus purchases-Information was received from Sales Tax Department-Sales was not disputed-Purchases cannot be deleted-Matter remanded to the Tribunal only to the limited extent of going into gross profit rate. [S. 145, 148], 254(1), 260A

S. 69C : Unexplained expenditure- Cash credit -Bogus purchases- Entire purchases cannot be disallowed – Only profit element embedded on alleged purchases can be added. [S. 37(1), 68, 133(6), 145]

S. 37(1) : Business expenditure-Capital or Revenue-Development of new product expenses-Shown as capital work in progress- Project abandoned – Capital work in progress written off as revenue expenditure – No new asset came into existence which would be of an enduring benefit to assessee- Allowable as revenue expenditure. [S. 145]

S. 32A : Investment allowance – Additional cost – Foreign exchange fluctuations – The increase or reduction in the liability has to take place only in the year of fluctuation and it does not relate back to the year of acquisition of the asset- Entitle to additional cost in the year of acquisition. [S. 32, 43A]

S.14A : Disallowance of expenditure-Exempt income – Assessing Officer had not recorded any satisfaction that working of inadmissible expenditure under section 14A by assessee was incorrect, interest expenditure could not be disallowed. [R. 8D (2)(ii)]

S. 10 (23C) : Educational institution- American Trust Established In India Solely for educational purposes with permission granted by Central Government – American organisation incurring expenses in support of Indian Trust and repatriating amounts to it-Amounts received utilised for purposes of education in India-Entitled to exemption. [S. 10(23C)(vi), 10(22), 11(5), Art. 226]

Direct Tax Vivad Se Vishwas Act, 2020, (2020) 422 ITR 121(St)

S. 3: Amount payable by declarant – Disputed tax – Amount paid by assessee under IDS, 2016 which was lying with revenue should be adjusted while determining tax payable by assessee under DTVSV Act. [S. 4, Finance Act, 2016, S. 191 ]