Imported menthol-scented sweet supari classification dispute: seizure quashed, release for home consumption subject to duty bond; bank guarantee refus...
CKD/SKD air-conditioner components classifiable with finished units by essential character; prior advance ruling extended three years, FTA benefits po...
Scope of judicial review under Article 226: supervisory, not appellate; factual reappraisal barred, challenge dismissed; insolvency professional dutie...
Assessment of whether provisions for gratuity and leave encashment qualify as application of income under the trust exemption. The Tribunal held such provisions are mandated by law, represent accrued and crystallized liabilities as on the balance sheet date, and are required for a true and fair view; it drew an analogy with depreciation as a book entry reflecting correct profits. The expression "applied" must be read commercially to include necessary statutory provisions incurred in furtherance of trust objects. Consequently the Assessing Officer was directed to allow these provisions as application of income and revenue grounds were dismissed.
Assessment of whether provisions for gratuity and leave encashment qualify as application of income under the trust exemption. The Tribunal held such provisions are mandated by law, represent accrued and crystallized liabilities as on the balance sheet date, and are required for a true and fair view; it drew an analogy with depreciation as a book entry reflecting correct profits. The expression "applied" must be read commercially to include necessary statutory provisions incurred in furtherance of trust objects. Consequently the Assessing Officer was directed to allow these provisions as application of income and revenue grounds were dismissed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4814 
Join Channel 
