https://www.taxtmi.com/caselaws?id=461503 ITAT Chennai ruled on multiple tax issues across three assessment years. The tribunal directed AO to verify if assessee's own funds covered investments before disallowing interest under Section 14A, with 0.5% indirect disallowance only on investments yielding exempt income. Bad debt recoveries from amalgamating companies were held taxable as business receipts. Income recognition on hire purchase contracts should follow EMI/ESM method consistently used by assessee. Depreciation rates were confirmed at 60% for UPS and 50% for commercial vehicles acquired in 2009. Software development expenditure of Rs. 2.79 lakhs was allowed depreciation. Government securities were held eligible for indexation benefits, being distinguishable from bonds/debentures. Bad debt disallowances on hire purchase transactions were deleted following precedent. en-us Fri, 17 May 2024 00:00:00 +0530 Wed, 09 Apr 2025 18:59:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461503 ITAT Chennai ruled on multiple tax issues across three assessment years. The tribunal directed AO to verify if assessee's own funds covered investments before disallowing interest under Section 14A, with 0.5% indirect disallowance only on investments yielding exempt income. Bad debt recoveries from amalgamating companies were held taxable as business receipts. Income recognition on hire purchase contracts should follow EMI/ESM method consistently used by assessee. Depreciation rates were confirmed at 60% for UPS and 50% for commercial vehicles acquired in 2009. Software development expenditure of Rs. 2.79 lakhs was allowed depreciation. Government securities were held eligible for indexation benefits, being distinguishable from bonds/debentures. Bad debt disallowances on hire purchase transactions were deleted following precedent. Case-Laws Income Tax Fri, 17 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461503