“Section 2(30)”
The decision most relied on for Section 2(30) is Indian Molasses Co. Pvt. Ltd. v. CIT (37 ITR 66), cited in 206 judgments on BharatTax.
Leading authorities on Section 2(30)
Expenditure is defined as money paid out or away, which is gone irretrievably. To be deductible under Section 37(1), expenditure must be wholly and exclusively for business, not capital or personal, and not fall under specific provisions of Sections 30 to 36, often justifiable on grounds of commercial expediency.
Each assessment year is an independent unit for income-tax purposes, requiring the issuance of a separate notice under Section 148 of the Income-tax Act for a valid reassessment. Failure to issue such separate notices renders the assessment invalid.
Expenditure incurred wholly and exclusively for the purpose of business is deductible, even if it is unremunerative or does not yield an immediate profit. The absence of a corresponding receipt does not negate the deductibility of such an expense.
Disallowance under Section 14A is not warranted merely because an assessee has sufficient interest-free funds to make investments that yield exempt income. No disallowance is called for if no expenditure is found to have been incurred for earning exempt income.
Corporate Social Responsibility (CSR) expenditure, when described in sections 30 to 36 of the Income-tax Act, 1961, is allowable as business expenditure, as indicated by the explanatory memorandum to Finance Act No. 2, 2014.
An assessment order served beyond the prescribed period of limitation is barred by limitation and is considered non-est in law.
An assessee cannot challenge the jurisdiction of an assessing officer after the expiry of one month from the date of service of notice, unless the objection is raised within 30 days of the notice under section 124(3)(a).
