SEZ-unit profit deduction covers voluntary transfer-pricing adjustments, while exempt-income costs, foreign-exchange loss and ITeS comparables are exa...
Infrastructure-development deduction remains available to EPC contractors when substantive statutory conditions outweigh contractor labels in agreemen...
Explained Investment Sources: documented gifts and traceable salary savings supported deletion of additions for property and mutual-fund SIP investmen...
Internal comparable pricing supports arm's-length interest on compulsorily convertible debentures, preventing their recharacterisation as equity for t...
The Assessing Officer disallowed depreciation claimed on Plant & Machinery to the extent of the External Commercial Borrowing (ECB) amount waived off during the previous year, invoking Sections 43(1) and 41(1) of the Income Tax Act. However, the Tribunal held that the waiver of loan on capital account cannot be taxed u/s 41(1), as per the Supreme Court's ruling in Mahindra & Mahindra. Since the assets were purchased in the relevant year, Section 43(1) is not applicable as the cost was not met by any other person. The Tribunal relied on the Supreme Court's decision in Tata Iron & Steel Co., which held that the mode of loan repayment does not affect the actual cost of the asset acquired by the assessee for business purposes. The cost of an asset and the cost of raising funds are separate transactions. Consequently, the Tribunal dismissed the Revenue's appeal.
The Assessing Officer disallowed depreciation claimed on Plant & Machinery to the extent of the External Commercial Borrowing (ECB) amount waived off during the previous year, invoking Sections 43(1) and 41(1) of the Income Tax Act. However, the Tribunal held that the waiver of loan on capital account cannot be taxed u/s 41(1), as per the Supreme Court's ruling in Mahindra & Mahindra. Since the assets were purchased in the relevant year, Section 43(1) is not applicable as the cost was not met by any other person. The Tribunal relied on the Supreme Court's decision in Tata Iron & Steel Co., which held that the mode of loan repayment does not affect the actual cost of the asset acquired by the assessee for business purposes. The cost of an asset and the cost of raising funds are separate transactions. Consequently, the Tribunal dismissed the Revenue's appeal.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4894 
