“Section 293(1)”
The decision most relied on for Section 293(1) is Hindustan Coca Cola Beverage Pvt. Ltd. v. CIT (293 ITR 226), cited in 576 judgments on BharatTax.
Leading authorities on Section 293(1)
The deductor cannot be treated as an assessee-in-default under Section 201(1) if the deductee has already paid the tax or offered the impugned receipts in their return of income. However, interest under Section 201(1A) for delayed deposit of tax can still be levied up to the date of filing of the return of income by the deductee.
A charitable trust can carry forward its excess expenditure from previous years and adjust it against the income of subsequent years, which qualifies as an application of income under Section 11. Additionally, voluntary contributions received for a specific purpose are treated as corpus funds and are not taxable.
The estimation of income for deducting tax at source under Section 192(1) of the Income-tax Act is valid when based on an honest and fair assessment by the assessee, a principle affirmed by the Supreme Court.
An addition to income cannot be made solely on the basis of a statement recorded during a search under section 132(4) without independent corroborating evidence. Similarly, a penalty cannot be levied merely on the basis of assessment order findings, allowing the assessee to challenge the underlying facts in penalty proceedings.
Expenditure incurred to construct a building on leasehold land, where the assessee does not own the superstructure, is revenue expenditure. Explanation 1 to Section 32 applies only when the building itself is taken on lease, not when a building is constructed on leased land.
Once tax has been deducted at source (TDS), the bar of section 205 applies, preventing the deductee from being asked to pay the tax again, even if the deductor fails to deposit the tax or issue TDS certificates.
The tax department cannot speculate to deny the benefit of tax deducted at source by the employer to the petitioner.
Expenditures are revenue in nature and deserve to be allowed as deductions if they are for commercial expediency.
