Income Tax Judgements

Only such deduction are allowed under section 42(1) as are specified in the agreement (PSC) and that too when they fall in any of the sub-clause (a), (b) or (c) of section 42(1); the PSC is an agreement between the Government of India and the assesse

The benefit of exemption under section 54 is to be extended only when the property sold as well as the property purchased by the assessee are intended to be used as residential houses.

Section 40C of the Act applies only in respect of Head Office expenses of a non-resident and has no application to the computation of deduction under section 80-IA; the head office expenses in the case of the non-resident as per provision of section

When the assessee has made a particular claim in the return of income and has also furnished all the material facts relevant thereto, the disallowance of such claim cannot automatically lead to the conclusion that there was concealment of particulars

The Central Board of Direct Taxes (CBDT) is the policy making agency of the Department of Revenue, hence, the instructions issued by it laying down monetary limits for filing of appeals, are mandatory, and as such, binding on the Revenue having regar

Where the assessee was a co-operative society and its income was deductible under section 80P, it was not necessary for the AO to impose penalty under section 271B upon the assessee for non-submission of audit report under section 44AB on or before d

Where the assessee-company in spite of the fire which destroyed stock/goods belonging to it on 26-3-1978, did not accept the same as its own loss because the responsibility/liability of the destruction of the stocks/goods in the fire was that of the

The facilities/amenities made available by a hotel to its customers do not constitute “work” within the meaning of section 194C; consequently, the Circular No. 681 dated 8-3-1994 to the extent it holds that the services made available by a hotel to i

The provision for a liability is amenable to a deduction if there is an element of certaintly that it shall be incurred and it is possible to estimate the liability with reasonable certainty even though the actual quantification may not be possible.

The payment by way of reimbursement of salary and expenses payable outside India or to a non-resident is chargeable under the head “salaries”, and the same is not covered by section 40(a)(i) but is covered by section 40(a)(iii) and in respect of whic