https://www.taxtmi.com/caselaws?id=258219 Disallowances under the Income-tax Act must rest on a demonstrated statutory basis, not on presumptions or estimates. The text explains that no notional disallowance under section 14A is justified without a direct nexus between exempt income and specific expenditure; business-linked receipts with a clear commercial connection need not be mechanically excluded from profits for section 80HHC; royalty paid under a treaty rate cannot be disallowed under section 40(a)(i) merely because the domestic rate was not applied; section 43B allows deduction of duty actually paid; and repetitive or estimated disallowances of gratuity, sales commission, or bad debts are impermissible where the claim has already been examined or no specific inadmissible item is identified. en-us Thu, 26 Mar 2015 00:00:00 +0530 Thu, 02 Apr 2015 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258219 Disallowances under the Income-tax Act must rest on a demonstrated statutory basis, not on presumptions or estimates. The text explains that no notional disallowance under section 14A is justified without a direct nexus between exempt income and specific expenditure; business-linked receipts with a clear commercial connection need not be mechanically excluded from profits for section 80HHC; royalty paid under a treaty rate cannot be disallowed under section 40(a)(i) merely because the domestic rate was not applied; section 43B allows deduction of duty actually paid; and repetitive or estimated disallowances of gratuity, sales commission, or bad debts are impermissible where the claim has already been examined or no specific inadmissible item is identified. Case-Laws Income Tax Thu, 26 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258219