“Section 117(1)”
The decision most relied on for Section 117(1) is Maruti Suzuki India Ltd. v. CIT (381 ITR 117), cited in 220 judgments on BharatTax.
Leading authorities on Section 117(1)
The Bright Line Test (BLT) is not a recognized method under the Income-tax Act and Rules for benchmarking advertising, marketing, and promotion (AMP) expenses or for determining the existence of an international transaction or its Arm's Length Price. The Revenue must first establish the existence and price of an international transaction before seeking an ALP adjustment.
Once an assessment is validly reopened under Section 147 for a specific item of income, the Assessing Officer cannot proceed to assess other, distinct items of income if the original ground for reopening itself fails. Explanation 3 to Section 147 does not empower the Assessing Officer to assess new items of income discovered during proceedings where the primary ground for reopening is ultimately not established.
Procedural law serves as an aid to justice, not an obstruction, and should not ordinarily be construed as mandatory; it is subservient to substantive justice.
Section 115BBE does not apply to genuine business receipts, business turnover, or 'on-money' from sales, which should be assessed under normal provisions allowing for loss set-off; furthermore, there is no concept of "partial application of mind" by the Assessing Officer in an assessment.
The tax department cannot speculate to deny the benefit of tax deducted at source by the employer to the petitioner.
Section 292BB of the Income Tax Act, introduced by the Finance Act, 2008, has prospective effect and does not apply retrospectively.
Exemption under section 54B for investment in agricultural land can be allowed even if the new property is purchased in the name of the spouse or other family members, provided the investment is made from the sale consideration of the original agricultural land.
Amounts advanced to a sister concern for commercial expediency are considered business expenditure, and any interest paid on loans taken for such advances is allowable as a deduction.
