“Section 33(1)”
The decision most relied on for Section 33(1) is M/s Mahadev Cold Storage v. Jurisdictional AO (43 Taxmann.com 33), cited in 262 judgments on BharatTax.
Leading authorities on Section 33(1)
Employees' contributions to welfare funds are an allowable deduction if paid before the due date for filing the income-tax return under section 139(1), even if the payment is made beyond the due date specified by the respective welfare fund Acts, as per the provisions of section 43B.
Section 194H of the Income Tax Act, 1961, is not applicable on the discount extended to distributors of pre-paid services, as the distributor does not earn income at the time of purchasing pre-paid cards from the assessee. The assessee is not in possession of any income belonging to the distributor at that point.
The Supreme Court clarified that an appellate authority's 'finding' must be essential for disposing of the appeal for the relevant assessment year, not an incidental observation about another year's income. Appellate authorities cannot issue directions on matters not directly arising in the appeal for the specific assessment year, especially regarding escaped income, which has separate statutory mechanisms.
The mere absence of customer addresses, particularly for cash sales, in the books of account is not a sufficient ground to reject the books or to cast suspicion on the genuineness of the transactions.
Tax authorities cannot reject an assessee's affidavit or a retraction of an admission of income without providing an opportunity to substantiate the claims or cross-examine the deponent. Simply lacking documentary evidence is not sufficient ground for outright rejection of such evidence.
When bad debts written off were not allowed as a deduction, any subsequent recovery from such bad debts cannot be brought to tax. This principle is upheld even if a deduction for provisions for bad and doubtful debts was allowed under section 36(1)(viia).
This case is authority for the principle that deductions under section 36(1)(viii) of the Income-tax Act may be granted in respect of certain categories of receipts. The court's decision in this case is relied upon when interpreting the scope of business activities for tax purposes.
The Insolvency and Bankruptcy Code, 2016 overrides any other enactment, including the Income Tax Act, when an NCLT has declared a moratorium under Section 14 of the IBC. Proceedings against the assessee are barred during the moratorium.
