Income Tax Judgements

2. Are refunds of liquidated damages made, not voluntarily but solely to comply with the directions of an authority, allowable as deduction? Mahanagar Telephone Nigam Ltd. In re (2006) Relevant section: 37(1) and 57(iii)

Profits and Gains of Business or Profession Special 1. Are expenditure incurred by a company on account of stamp duty and registration fees for the issue of bonus shares allowable as revenue expenditure? CIT, Mumbai v. General Insurance Corporati

SCOPE OF ADDING BACK PROVISION FOR DOUBTFUL DEBTS TO NET PROFIT UNDER SECTION 115JA OF IT ACT, 1961 RATIO DECIDENDI The provision for bad and doubtful debt can be added back to the net profit only if Item (c) of the Explanation to section 115

The Supreme Court has said the Income-Tax Department has to accept the authenticity of the accounts maintained in accordance with the provisions of the Companies Act and certified by the auditors. The assessing officer cannot go beyond the net pr

DEDUCTIBILITY OF DEPRECIATION FOR DETERMINING ELIGIBLE PROFITS UNDER SECTIONS 80-IB AND 80HHC OF IT ACT, 1961 RATIO DECIDENDI Depreciation allowance under section 32 will have to be deducted in arriving at the “profits and gains” of business

NATURE OF INCENTIVE SUBSIDY RECEIVED BY A SUGAR FACTORY UNDER SCHEME OF 1980, 1987,1988 & 1993 FOR PURPOSE OF IT ACT, 1961 RATIO DECIDENDI It is the object for which the subsidy/assistance is given which determines the nature of the incentive

The ex-gratia payment in excess of the limits prescribed under the payment of Bonus Act either under section 36(1)(ii) or section 37(1) of the Income-tax Act, is allowable as business expenditure although the payment does not cover contractual or cus

It is the object for which the subsidy/assistance is given which determines the nature of the incentive subsidy; the form of the mechanism through which the subsidy is given is irrelevant

Where the applicant is in the business of providing bioanalytical services to various pharmaceutical companies around the world, the consideration/fee paid by the Indian pharmaceutical companies to the applicant in respect of bioequivalence tests con

Depreciation allowance under section 32 will have to be deducted in arriving at the “profits and gains” of business derived by an assessee, from an industrial undertaking specified under section 80-1B or export business under section 80HHC.