https://www.taxtmi.com/caselaws?id=66942 The Tribunal partly allowed the appeals, affirming most of the CIT(A)'s decisions. The validity of the agreement between the assessee company and Kasyap Publications Pvt. Ltd. was upheld, emphasizing genuine business activities over tax avoidance concerns. The Tribunal rejected the application of McDowell's principle, emphasizing commercial purpose. Notional interest addition was deleted, and expenses for machinery installation were treated as revenue expenditure. However, interest from MPEB deposits and FDR was included for deductions under sections 80HH & 80-I in favor of the revenue. Loss claimed by the assessee was allowed, and section 80-I deduction was permitted on gross total income without reduction by section 80HH deduction. en-us Mon, 31 May 2004 00:00:00 +0530 Tue, 08 Mar 2011 12:32:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66942 The Tribunal partly allowed the appeals, affirming most of the CIT(A)'s decisions. The validity of the agreement between the assessee company and Kasyap Publications Pvt. Ltd. was upheld, emphasizing genuine business activities over tax avoidance concerns. The Tribunal rejected the application of McDowell's principle, emphasizing commercial purpose. Notional interest addition was deleted, and expenses for machinery installation were treated as revenue expenditure. However, interest from MPEB deposits and FDR was included for deductions under sections 80HH & 80-I in favor of the revenue. Loss claimed by the assessee was allowed, and section 80-I deduction was permitted on gross total income without reduction by section 80HH deduction. Case-Laws Income Tax Mon, 31 May 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66942