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 ITAT upheld the allowability of depreciation on goodwill arising from a court-sanctioned amalgamation under section 32(1)(ii), rejecting the AO's disallowance and reliance on AS-26 and precedent. The tribunal affirmed that once depreciation is allowed, the carry-forward of unabsorbed depreciation is a vested right and cannot be denied without reversal by a competent forum, thereby dismissing the AO's disallowance of brought-forward depreciation. Product registration expenses were held to be revenue in nature and deductible under section 37(1), not capital expenditure. The claim for deduction under section 80-IC was sustained, as the Baddi Unit was found to have operational autonomy and no nexus was established to allocate corporate expenses to it. Scrap income was deemed eligible for deduction under section 80-IC, consistent with prior assessments. Finally, the enhanced income due to disallowance under section 40(a)(ia) was held eligible for deduction under section 80-IC. All revenue appeals were dismissed.
The ITAT upheld the allowability of depreciation on goodwill arising from a court-sanctioned amalgamation under section 32(1)(ii), rejecting the AO's disallowance and reliance on AS-26 and precedent. The tribunal affirmed that once depreciation is allowed, the carry-forward of unabsorbed depreciation is a vested right and cannot be denied without reversal by a competent forum, thereby dismissing the AO's disallowance of brought-forward depreciation. Product registration expenses were held to be revenue in nature and deductible under section 37(1), not capital expenditure. The claim for deduction under section 80-IC was sustained, as the Baddi Unit was found to have operational autonomy and no nexus was established to allocate corporate expenses to it. Scrap income was deemed eligible for deduction under section 80-IC, consistent with prior assessments. Finally, the enhanced income due to disallowance under section 40(a)(ia) was held eligible for deduction under section 80-IC. All revenue appeals were dismissed.
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