“Section 102(2)”
The decision most relied on for Section 102(2) is Lucknow) Relaxo Footwear Ltd. v. Addl. CIT (50 SOT 102), cited in 34 judgments on BharatTax.
Leading authorities on Section 102(2)
Section 14A aims to prevent the claiming of deductions for expenses incurred in relation to tax-exempt income, and a narrow interpretation that defeats this purpose is incorrect. The concept of 'real income' must be considered, as taxation of 'notional income' is not permissible.
Interest earned from the tax department is to be assessed in accordance with the Double Taxation Avoidance Agreement (DTAA).
For determining whether a payment constitutes business expenditure, the perspective of the payer is relevant. The recipient's treatment of the payment, such as classifying it as capital gains, is not determinative.
An Assessing Officer has 'reason to believe' that income has escaped assessment if there is a direct nexus between the tangible material available on record and the belief formed.
