Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed wit...
The tribunal addressed deductibility of interest expenditure claimed under Income from Other Sources, applying the intention-and-nexus test: expenditure is deductible if laid out wholly and exclusively for earning that income. Factually, borrowings were advanced as loans that generated interest income, confirmations, ledger entries and income computation established a proximate nexus, and remand proceedings produced no adverse finding on genuineness. CIT(A)s disallowance for lack of documentary linkage was held unsustainable. Reliance on precedent affirming intent over actual earning was distinguished as inapplicable here because income was in fact earned and taxed; the appeal allowing the deduction was allowed.
The tribunal addressed deductibility of interest expenditure claimed under Income from Other Sources, applying the intention-and-nexus test: expenditure is deductible if laid out wholly and exclusively for earning that income. Factually, borrowings were advanced as loans that generated interest income, confirmations, ledger entries and income computation established a proximate nexus, and remand proceedings produced no adverse finding on genuineness. CIT(A)s disallowance for lack of documentary linkage was held unsustainable. Reliance on precedent affirming intent over actual earning was distinguished as inapplicable here because income was in fact earned and taxed; the appeal allowing the deduction was allowed.
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