April 2022
- Business expenditure Capital or revenue expenditure Capital work-in-progress written off Salary and professional fees expenditure incurred in respect of projects abandoned to conserve cash flow Revenue expenditure
- Business expenditure Disallowance Expenses prohibited in law CBDT Circular No. 5 dated 1st August, 2012 disallowing expenses in providing free gifts or facilities to medical practitioners by pharmaceutical and allied health sector industry Circular not applicable retrospectively Expenses deductible for earlier years
- Charitable purpose Exemption u/s 11:- (i) Charitable institution engaged in imparting education Effect of proviso to s. 2(15) and CBDT circular No. 11 of 2008 [1] Surplus income generated by educational activities Would not affect entitlement to exemption u/s 11; (ii) Effect of s. 13 Disqualification for exemption Charitable institution running educational institution Alleged excess of remuneration to employees Revenue has no power to interfere Exemption could not be denied
- Income Income or capital Investment of funds before commencement of operation in fixed deposits and mutual funds as per directive of Government Income generated to be utilised for purposes of business of company Income not revenue receipt
- Non-resident Income deemed to accrue or arise in India Royalty Meaning of royalty Transfer authorising transferee to use licensed software No transfer of copyright Amount received cannot be termed royalty
- Reassessment Notice u/s 148 after four years Condition precedent Failure by assessee to disclose material facts necessary for assessment Notice not stating which fact had not been disclosed Mere statement that there had been failure to disclose material facts is not sufficient All documents and details submitted by assessee during original assessment and examined by TPO and original order passed by AO thereafter No failure on part of assessee to disclose material facts fully and truly Notice and reassessment on change of opinion Impermissible
- Return of income Revised return Delay in filing revised return since sanction from National Company Law Board for demerger was received after expiry of time limit for filing revised return Rejection of revised return not valid
- Settlement of cases Interest u/s 220(2) Order of Commissioner (Appeals) directing AO to withdraw investment allowance granted u/s 32A set aside by Tribunal Order passed by Settlement Commission reducing interest u/s 220(2) Need not be interfered with
- On maturity of life insurance policy, where section 10(10D) does not apply, it is only net income which is chargeable to tax
- For the purpose of section 54, it is the date of possession which should be taken as the date of purchase and not the date of registration of agreement for sale
- Where source of funds is clearly established, clubbing provisions do not apply
- Proviso to section 68 inserted vide Finance Act, 2012 requiring the Assessee to prove source in respect of share premium money; operates prospectively from A.Y. 2013-14. Merely because the lender parties did not respond to summons/notices of the Assessing Officer; that cannot be sole ground to make addition u/s 68 when otherwise the documentary evidences were duly produced by the Assessee
- Where revenue had been duly informed about dissolution of trust and still chose to continue proceeding on dissolved entity which was no more in existence, such trust was a substantive illegality and not a procedural violation of nature adverted to in section 292B
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