https://www.taxtmi.com/caselaws?id=282801 Direct costs recorded in a contract-account system were treated as part of business computation rather than deductions under sections 30 to 38, so section 40(a)(ia) was said not to apply to labour charges booked as direct expenditure. Old client credit balances were not treated as ceased liabilities without proof of cessation, and interest on client funds was regarded as belonging to the clients, not the assessee. The commentary also notes that revised income computations may be accepted at the appellate stage, and that prior-period or reversed items cannot be taxed again where they relate to earlier-year contract-account entries already recognised. en-us Fri, 17 May 2019 00:00:00 +0530 Fri, 23 Aug 2019 20:39:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=282801 Direct costs recorded in a contract-account system were treated as part of business computation rather than deductions under sections 30 to 38, so section 40(a)(ia) was said not to apply to labour charges booked as direct expenditure. Old client credit balances were not treated as ceased liabilities without proof of cessation, and interest on client funds was regarded as belonging to the clients, not the assessee. The commentary also notes that revised income computations may be accepted at the appellate stage, and that prior-period or reversed items cannot be taxed again where they relate to earlier-year contract-account entries already recognised. Case-Laws Income Tax Fri, 17 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=282801