“Section 43(4)”
The decision most relied on for Section 43(4) is CIT v. Ponni Sugars & Chemicals Ltd. (306 ITR 392), cited in 577 judgments on BharatTax.
Leading authorities on Section 43(4)
The "Purpose Test" determines whether an incentive or subsidy is a capital or revenue receipt for income tax purposes. If the incentive's purpose is to enable an assessee to set up a new industry or make investments in capital assets, it is a capital receipt and not taxable.
When two special acts conflict, the later act generally prevails, unless the dominant purpose of the earlier act is covered by the contingency in question, in which case the earlier act may prevail.
A retracted statement obtained during a search under Section 132(4) can be disregarded if the Assessing Officer believes the retraction is baseless and intended to shield the assessee from evidence found.
The actual cost of an asset for depreciation purposes is the cost to the assessee, reduced by any portion of that cost met by another person. Revaluation of assets motivated by inflating depreciation claims, rather than genuine business needs, is not permissible.
Expenditure on scientific research for weighted deduction must satisfy the conditions in section 35(2AB) and also the provisions of section 35(3)(b) of the Income Tax Act.
