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...
DSIR certification supported deduction under section 35(2AB) because the Tribunal applied judicial consistency and held that the Assessing Officer could not disregard the certified R&D expenditure without following the statutory procedure. It also sustained deletion of manufacturing-expense and R&D additions made on post-survey extrapolation, finding no abnormality in the expense ratio and no rebuttal of the factual findings. As those disallowances failed on merits, the reassessment based on the same grounds was held invalid. For the later year, interest disallowance linked to a loan treated as unexplained cash credit was deleted once that underlying addition no longer survived, while other claims were sent back for factual verification.
DSIR certification supported deduction under section 35(2AB) because the Tribunal applied judicial consistency and held that the Assessing Officer could not disregard the certified R&D expenditure without following the statutory procedure. It also sustained deletion of manufacturing-expense and R&D additions made on post-survey extrapolation, finding no abnormality in the expense ratio and no rebuttal of the factual findings. As those disallowances failed on merits, the reassessment based on the same grounds was held invalid. For the later year, interest disallowance linked to a loan treated as unexplained cash credit was deleted once that underlying addition no longer survived, while other claims were sent back for factual verification.
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