“Section 167(1)”
The decision most relied on for Section 167(1) is Commissioner of Income-Tax v. Hemla Embroidery Mills P. Ltd. (366 ITR 167), cited in 400 judgments on BharatTax.
Leading authorities on Section 167(1)
Employee contributions to Provident Fund (PF) and Employee State Insurance (ESI) are deductible under the Income Tax Act if deposited by the assessee before the due date for filing the return of income, even if such deposits are made after the specific due dates prescribed under the respective PF and ESI Acts.
Interest on borrowed capital utilized for acquiring a capital asset is capitalized until business commences. Once business is set up, this interest is deductible under section 36(1)(iii) even if the asset has not yet been put to use, accepting commercial accounting standards in the absence of contrary statutory provisions.
The principle of 'sufficient cause' for condonation of delay in filing appeals requires a liberal interpretation to ensure substantial justice, but delay will not be condoned if sufficient cause is not satisfactorily explained by the appellant.
Disallowance of expenditure under section 14A of the Income-tax Act cannot exceed the amount of exempt income earned by the assessee in the relevant assessment year.
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 appellate tribunal ought to remand a matter rather than set aside assessments entirely when jurisdiction is in question.
When an assessment is abated under section 153A, an assessee is entitled to claim deductions or exemptions in the return filed in response to the notice. The ITAT Special Bench has held that a deduction under section 80-IA is permissible in such a scenario.
The revenue cannot question the commercial expediency of an expenditure if it is incurred wholly and exclusively for the purpose of business. The assessee's judgment on what constitutes reasonable business expenditure is generally respected.
