Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
Income under the head 'business and profession' would be earned by incurring relevant expenditure. While unjustified expenditure could be disallowed, there are limits to the documentation and evidence a normal business would maintain. The assessee meticulously maintained documents, deducted tax at source on payments to vendors executing turnkey projects. The CIT(A) failed to appreciate the limits on evidence a business entity would have to justify expenditure. The assessee provided detailed documents justifying the expenditure incurred. Relying on judicial precedents, the burden of proof on the assessee regarding proving expenditure u/s 37(1) has limits and cannot be mainly disallowed on the grounds adopted by the Assessing Officer. Disallowance u/s 37(1) was deleted, decided in favor of the assessee.
Income under the head 'business and profession' would be earned by incurring relevant expenditure. While unjustified expenditure could be disallowed, there are limits to the documentation and evidence a normal business would maintain. The assessee meticulously maintained documents, deducted tax at source on payments to vendors executing turnkey projects. The CIT(A) failed to appreciate the limits on evidence a business entity would have to justify expenditure. The assessee provided detailed documents justifying the expenditure incurred. Relying on judicial precedents, the burden of proof on the assessee regarding proving expenditure u/s 37(1) has limits and cannot be mainly disallowed on the grounds adopted by the Assessing Officer. Disallowance u/s 37(1) was deleted, decided in favor of the assessee.
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