“Section 193(2)”
The decision most relied on for Section 193(2) is American Express International Banking Corporation v. CIT (258 ITR 601), cited in 90 judgments on BharatTax.
Leading authorities on Section 193(2)
Interest paid by banks is allowable as a deduction in computing total income. The decision distinguished the Supreme Court's ruling in Vijaya Bank regarding the deductibility of such interest.
Interest paid for the broken period on purchase of dated government securities and interest received for the broken period on sale of such securities, if treated as trading assets, can be claimed as revenue expenditure under section 28. Income falling under section 18 of the Income Tax Act cannot also fall under section 28.
The High Court's decision in Balasubramaniam, 269 ITR 1 (Bom), established that the Assistant Commissioner has the power to reopen assessments under Section 147 of the Income Tax Act, 1961, based on a failure to disclose material facts. This implies the Commissioner of Income-tax v. Mayur Foundation, 193 ITR 624 (Bom), reinforces the principle that assessments can be reopened if crucial information was not presented by the assessee.
The expression 'sufficient cause' for condoning delay in filing an appeal is to be judged with reference to reasonableness and the conduct expected of a litigant acting with ordinary prudence, falling within the realm of normal human conduct.
Assessee must establish the actual financial liquidity position on the relevant date to prove that borrowed funds were used for business purposes, rather than merely showing that profits exceeded investments in the assessment year.
An order for the transfer of a case, even within the same city, must be on record. The explanation to Section 127 of the Income Tax Act clarifies that all proceedings, pending or future, stand transferred upon such an order.
An assessee is entitled to claim the remaining 50% of depreciation in a subsequent year if the asset was put to use for less than 180 days in the year of addition, and the first 50% was not claimed. Capital investment subsidies received for setting up a project in a backward area are considered capital subsidies and do not require reduction from the cost of assets under Explanation 10 to Section 43(1).
