Judgements and Orders, Supreme Court and High courts of India

There are two types of "debt". A debt payable by the assessee is different from a debt receivable by the assessee.

A statutory authority despite receipt of such a request could have kept mum. It should have taken some action. It should have responded to the prayer of the appellant. However, another principle should also be borne in mind, namely, that a statutor

Neset Holdings (P) Ltd. v. CIT (2006) Relevant section: 37(1)

3. Can the value of bus donated by the assessee-employer to a school where the employees’ children were receiving education be allowed as deduction? CIT v. Rajasthan Spinning and Weaving Mills Ltd. (2006) Relevant section: 37

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