HC - Even though dividend income derived from business promotion was assessable under head ‘income from other sources’ u/s 56, still interest expenditure incurred for the purpose of business promotion should be considered for business expenditure deduction u/s 36 (1) (iii) and not u/s 57.
ITAT - When the fact of embezzlement is not accepted by the AO, there cannot be any occasion to make substantive assessment and protective assessment in respect of such an embezzlement income. “Protective addition” permissible only when income certainty established.
ITAT - Supply of sale of hardware and license of embedded software to end customers in India by a US company through its Indian subsidiaries is not royalty under Article 12 of India-US DTAA.
HC - Assembling of instruments and apparatus for measuring and detecting ionizing radiators is a manufacturing activity eligible for deduction u/s 10B
HC - Denying extension of stay by ITAT beyond 365 days to 'well-behaved' assessee is violative of Article 14 of Constitution and has no nexus or connection with object sought to be achieved.
HC - Since there was no explanation by assessee for payment of commission to his son, daughter and daughter-in-law, moreover, there was no agreement between said parties, claim for deduction under section 36(1)(ii) was to be rejected. Similarly excessive rent paid to relatives in absence of explanation…
ITAT - Since payment made to Tamil Nadu Sports Association was not covered under any of specific sections under Chapter XVIIB of Act, No TDS.
HC - Interest received by assessee on R.B.I. securities after sale of same, as R.B.I. did not record change of ownership, such interest belonged to purchaser and not chargeable u/s 4 in assessee's hands
ITAT - CIT(A) holding that assessee did not have PE in India as per DTAA without giving reasons, matter required readjudication
HC - Expenditure in cash in excess of Rs. 20,000 on costumes, makeup, wig material, travelling expenses etc., at different places of shooting was to be allowed as there was reasonableness in claim of assessee (actor)