Prior Sanction Requirement: absence of prescribed approval invalidates reassessment notice; limitation also bars notice if escaped income below thresh...
Eligibility for exemption depends on strict construction of the product description; reapers without binder are ineligible, but confiscation and penal...
Customs jurisdiction defined for Principal Commissioner, Vishakhapatnam, covering specified ports, districts and India's adjacent EEZ; effective on pu...
Interest on borrowed funds may not be disallowed where an assessee can demonstrate sufficient own interest-free funds for interest-free advances to related concerns. Where borrowed funds are diverted to associates, the allowability of interest must be examined by comparing interest paid on borrowings with interest charged on the advances, and the differential cost of diverted funds can be disallowed. Advances to directors and key managerial personnel require proof of commercial expediency; absent such evidence, proportionate interest attributable to those advances is liable to disallowance under section 36(1)(iii).
Interest on borrowed funds may not be disallowed where an assessee can demonstrate sufficient own interest-free funds for interest-free advances to related concerns. Where borrowed funds are diverted to associates, the allowability of interest must be examined by comparing interest paid on borrowings with interest charged on the advances, and the differential cost of diverted funds can be disallowed. Advances to directors and key managerial personnel require proof of commercial expediency; absent such evidence, proportionate interest attributable to those advances is liable to disallowance under section 36(1)(iii).
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