Authentication of paper assessment orders upheld, while qualifying repairs, consumables and vendor advance write-offs remain deductible business claim...
Transaction value cannot be rejected solely on non-statutory valuation guidelines without corroborative evidence supporting reassessment of final cust...
Cross-examination rights and corroborated evidence limit customs penalties for misdeclaration in genuine import transactions involving documented clea...
Tariff classification of vehicle gear components follows the specific gearing entry, displacing motor-vehicle parts classification and related liabili...
Sales Tax Subsidy Classification and Tax Implications The ITAT upheld the capital nature of a sales tax subsidy received from state governments. The tribunal directed the Assessing Officer (AO) to recalculate depreciation by reducing the subsidy amount from fixed asset costs under Explanation 10 to Section 43(1). The SC previously affirmed the subsidy's capital classification. The tribunal rejected revenue's contentions regarding book profit computation under Section 115JB, emphasizing that the AO lacks authority to modify book profits absent fraud or non-compliance with Companies Act provisions. The subsidy, directly credited to capital reserve and not impacting profit and loss account, cannot be adjusted in book profit calculations. Appeals filed by revenue were dismissed, and the Co-ordinate Bench's directions for depreciation re-computation were upheld.
Sales Tax Subsidy Classification and Tax Implications The ITAT upheld the capital nature of a sales tax subsidy received from state governments. The tribunal directed the Assessing Officer (AO) to recalculate depreciation by reducing the subsidy amount from fixed asset costs under Explanation 10 to Section 43(1). The SC previously affirmed the subsidy's capital classification. The tribunal rejected revenue's contentions regarding book profit computation under Section 115JB, emphasizing that the AO lacks authority to modify book profits absent fraud or non-compliance with Companies Act provisions. The subsidy, directly credited to capital reserve and not impacting profit and loss account, cannot be adjusted in book profit calculations. Appeals filed by revenue were dismissed, and the Co-ordinate Bench's directions for depreciation re-computation were upheld.
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