https://www.taxtmi.com/caselaws?id=274711 Taxability of the Passenger Service Fee security component depended on the contractual escrow arrangement, governing aviation directions and actual use of the funds; executive clarifications could not override the Act, and the matter was remanded for fresh examination of the account and utilisation. Disallowance under section 40(a)(ia) turned on TDS compliance for year-end provisions and specified payments, with relief on director sitting fee and recruitment expense subject to verification, while the year-end provision issue was sustained for deduction in the year of compliance. Section 14A read with Rule 8D applied only where exempt income existed, so recomputation was directed in relevant years and deleted where no exempt income arose. Depreciation on amounts already treated as revenue expenditure was not allowed, and deduction under section 80-IA was upheld on positive assessed income. en-us Wed, 31 Jan 2018 00:00:00 +0530 Thu, 30 Aug 2018 05:45:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=274711 Taxability of the Passenger Service Fee security component depended on the contractual escrow arrangement, governing aviation directions and actual use of the funds; executive clarifications could not override the Act, and the matter was remanded for fresh examination of the account and utilisation. Disallowance under section 40(a)(ia) turned on TDS compliance for year-end provisions and specified payments, with relief on director sitting fee and recruitment expense subject to verification, while the year-end provision issue was sustained for deduction in the year of compliance. Section 14A read with Rule 8D applied only where exempt income existed, so recomputation was directed in relevant years and deleted where no exempt income arose. Depreciation on amounts already treated as revenue expenditure was not allowed, and deduction under section 80-IA was upheld on positive assessed income. Case-Laws Income Tax Wed, 31 Jan 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=274711