https://www.taxtmi.com/caselaws?id=178071 The computation of income figure, not the mistaken figure in the return, was correctly adopted as the returned income. Section 14A read with Rule 8D disallowance was deleted because the mutual fund investments were made from substantial own funds and accumulated profits, with no proven nexus to borrowed funds. The surplus arising on prepayment of deferred sales tax liability at net present value was held to be a capital receipt, not taxable under section 41(1), as there was no remission or cessation of liability. Special capital incentive subsidy was not required to be reduced from the written down value, since it was not granted to meet any specific part of the asset cost. en-us Fri, 31 Jan 2014 00:00:00 +0530 Wed, 27 Jan 2016 23:21:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178071 The computation of income figure, not the mistaken figure in the return, was correctly adopted as the returned income. Section 14A read with Rule 8D disallowance was deleted because the mutual fund investments were made from substantial own funds and accumulated profits, with no proven nexus to borrowed funds. The surplus arising on prepayment of deferred sales tax liability at net present value was held to be a capital receipt, not taxable under section 41(1), as there was no remission or cessation of liability. Special capital incentive subsidy was not required to be reduced from the written down value, since it was not granted to meet any specific part of the asset cost. Case-Laws Income Tax Fri, 31 Jan 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178071