Functional comparability under TNMM supported exclusion of ITeS comparables with R&D, intangibles, diversified operations, or unavailable segmental da...
The assessee claimed exemption u/s 10(23G), and the disallowance u/s 14 concerning exempt income was disputed. It was held that the assessee had sufficient interest-free funds for making investments, aligning with the ratios in Reliance Utilities & Power Ltd. and HDFC Bank cases, presuming investments were made from interest-free funds. The South Indian Bank Ltd. case supported this presumption. Regarding depreciation on leased assets, the assessee's claim was upheld, consistent with the Tribunal's earlier decision, as there were no new lease transactions. On the addition u/s 41(4) for written-back bad debts, the issue was restored to the Assessing Officer, following the Tribunal's view in the preceding assessment year. The claim for bad and doubtful debts u/s 36(2) was allowed, as the debt represented money lent in the ordinary course of banking/money-lending business, adhering to the TRF Limited and Khyati Realtors Pvt. Ltd. cases. The business loss claim and sales promotion expenses were allowed, following the rule of consistency from earlier years. The disallowance of club membership fees was rejected, aligning with the United Glass Manufacturing Co. Ltd. case, treating it as a business expenditure.
The assessee claimed exemption u/s 10(23G), and the disallowance u/s 14 concerning exempt income was disputed. It was held that the assessee had sufficient interest-free funds for making investments, aligning with the ratios in Reliance Utilities & Power Ltd. and HDFC Bank cases, presuming investments were made from interest-free funds. The South Indian Bank Ltd. case supported this presumption. Regarding depreciation on leased assets, the assessee's claim was upheld, consistent with the Tribunal's earlier decision, as there were no new lease transactions. On the addition u/s 41(4) for written-back bad debts, the issue was restored to the Assessing Officer, following the Tribunal's view in the preceding assessment year. The claim for bad and doubtful debts u/s 36(2) was allowed, as the debt represented money lent in the ordinary course of banking/money-lending business, adhering to the TRF Limited and Khyati Realtors Pvt. Ltd. cases. The business loss claim and sales promotion expenses were allowed, following the rule of consistency from earlier years. The disallowance of club membership fees was rejected, aligning with the United Glass Manufacturing Co. Ltd. case, treating it as a business expenditure.
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