https://www.taxtmi.com/caselaws?id=217018 Interest on funds advanced to subsidiaries requires factual verification of commercial expediency and prior-year treatment under section 36(1)(iii), warranting fresh consideration. Expenditure linked to exempt dividend income is restricted to a reasonable factual estimate, stated as 2% of gross dividend. Actual payment within section 43B permits deduction despite prepaid accounting treatment, whereas wealth-tax payment remains non-deductible. Advance licence and pass book benefits do not accrue where import entitlement or credit receipt remains contingent. Section 80HHC requires formula-based adjustments, including exclusion of excise duty, sales tax and unrealised export proceeds where applicable. Eligible demerger expenditure is deductible over five years under section 35DD, and timely provident-fund contributions remain allowable. en-us Fri, 15 Jun 2012 00:00:00 +0530 Fri, 28 Sep 2012 16:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=217018 Interest on funds advanced to subsidiaries requires factual verification of commercial expediency and prior-year treatment under section 36(1)(iii), warranting fresh consideration. Expenditure linked to exempt dividend income is restricted to a reasonable factual estimate, stated as 2% of gross dividend. Actual payment within section 43B permits deduction despite prepaid accounting treatment, whereas wealth-tax payment remains non-deductible. Advance licence and pass book benefits do not accrue where import entitlement or credit receipt remains contingent. Section 80HHC requires formula-based adjustments, including exclusion of excise duty, sales tax and unrealised export proceeds where applicable. Eligible demerger expenditure is deductible over five years under section 35DD, and timely provident-fund contributions remain allowable. Case-Laws Income Tax Fri, 15 Jun 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=217018