“Section 241(2)”

The test of enduring benefit for classifying expenditure as capital or revenue is not absolute; expenditure incurred for an enduring advantage may nonetheless be on revenue account, as the test can break down depending on the facts.

The case is cited for the proposition that payments made for the elimination of competition are generally not deductible as business expenditure. This is because such payments are often considered capital in nature, designed to secure or preserve an enduring benefit for the business.

For assessment years where Accounting Standard 7 was not applicable to real estate developers, the percentage completion method cannot be imposed, and the project completion method of accounting as per Accounting Standard 9 is permissible.

Reassessment proceedings can be initiated based on an audit party's information pointing out the existence of a law, provided the statutory conditions for reassessment are met. The sufficiency or correctness of the material is not a factor at the stage of reopening.

The revenue contends that roaming services involve the transfer of rights to use a process, making payments for such services taxable under Section 9(1)(vii) of the Income Tax Act.

Additions can be made based on seized documents if the assessee fails to justify their stand regarding unaccounted sales or the nature of expenditure.

The delay in filing TDS statements is not penalized if there was no intentional delay and the statements cannot be filed before the payment of taxes.