Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
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...
Deductibility of software licence fees was treated as revenue expenditure because licences were limited-term, conferred no enduring benefit, and available material established revenue treatment; disallowance deleted. Depreciation on intangible assets acquired under business transfer agreements was allowed because assets were not recorded or depreciated by transferor, so aggregate deduction did not arise and the sixth proviso to section 32(1) did not apply; AO directed to allow depreciation. Claim to deduct foreign taxes as business expenses under section 37(1) was restored to the AO for factual verification including foreign tax credit and section 40(a)(ii) considerations. Weighted deduction under section 35(2AB) for in house R&D was allowed; alternatively expenditure directed to be considered under section 35(1)(i).
Deductibility of software licence fees was treated as revenue expenditure because licences were limited-term, conferred no enduring benefit, and available material established revenue treatment; disallowance deleted. Depreciation on intangible assets acquired under business transfer agreements was allowed because assets were not recorded or depreciated by transferor, so aggregate deduction did not arise and the sixth proviso to section 32(1) did not apply; AO directed to allow depreciation. Claim to deduct foreign taxes as business expenses under section 37(1) was restored to the AO for factual verification including foreign tax credit and section 40(a)(ii) considerations. Weighted deduction under section 35(2AB) for in house R&D was allowed; alternatively expenditure directed to be considered under section 35(1)(i).
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