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...
Constitutional judicial review permits challenges to ECIRs and connected money-laundering proceedings where coercive action affects fundamental intere...
Disallowing interest expenditure claimed u/s 36(1)(iii) when the assessee firm has interest-free funds and the amount overdrawn by partners. The Tribunal held that since the assessee firm had interest-free funds sufficient to cover the amounts overdrawn by partners, as evident from audited accounts, the disallowance of interest expenditure by the Assessing Officer was unjustified. The Tribunal relied on decisions of the Bombay High Court and its own coordinate Bench, which established that if an assessee has sufficient interest-free funds and advances are made without charging interest, disallowance u/s 36(1)(iii) on such advances for notional interest is not permissible. The Tribunal found no merit in the Revenue's appeal, concluding that the Assessing Officer's adverse inference was a misreading of facts contrary to documented evidence provided by the assessee.
Disallowing interest expenditure claimed u/s 36(1)(iii) when the assessee firm has interest-free funds and the amount overdrawn by partners. The Tribunal held that since the assessee firm had interest-free funds sufficient to cover the amounts overdrawn by partners, as evident from audited accounts, the disallowance of interest expenditure by the Assessing Officer was unjustified. The Tribunal relied on decisions of the Bombay High Court and its own coordinate Bench, which established that if an assessee has sufficient interest-free funds and advances are made without charging interest, disallowance u/s 36(1)(iii) on such advances for notional interest is not permissible. The Tribunal found no merit in the Revenue's appeal, concluding that the Assessing Officer's adverse inference was a misreading of facts contrary to documented evidence provided by the assessee.
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