https://www.taxtmi.com/caselaws?id=258556 Section 14A disallowance under Rule 8D requires the Assessing Officer to record cogent dissatisfaction with the assessee's claim before invoking the formula; mechanical application without such basis is unsustainable. Section 41(1) applies only on remission, cessation, or extinction of a liability, so a mere mismatch between the assessee's books and the creditor's statement does not establish taxable cessation. In a joint development arrangement involving stock-in-trade, income accrues only on actual registered transfer of the stock, and the completed contract method may be followed; the non-refundable deposit does not become sale consideration until transfer occurs. en-us Fri, 27 Mar 2015 00:00:00 +0530 Tue, 14 Apr 2015 19:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258556 Section 14A disallowance under Rule 8D requires the Assessing Officer to record cogent dissatisfaction with the assessee's claim before invoking the formula; mechanical application without such basis is unsustainable. Section 41(1) applies only on remission, cessation, or extinction of a liability, so a mere mismatch between the assessee's books and the creditor's statement does not establish taxable cessation. In a joint development arrangement involving stock-in-trade, income accrues only on actual registered transfer of the stock, and the completed contract method may be followed; the non-refundable deposit does not become sale consideration until transfer occurs. Case-Laws Income Tax Fri, 27 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258556