“Section 77(1)”

No disallowance under Section 14A can be made in the absence of actual exempt income, as Section 14A relates to the earning of actual income, not notional or anticipated income, thereby declining to apply the CBDT Circular dated 11th May 2014 in such cases.

An Assessing Officer's order is considered erroneous and prejudicial to the interest of revenue, warranting revision under Section 263, if there is a lack of proper inquiry or non-application of mind to crucial aspects of the assessment, even where some information has been furnished by the assessee.

The principle of valuing closing stock at cost or market value, whichever is lower, is a recognized and acceptable method of accounting.

For an indivisible business, expenditure cannot be apportioned between exempt and taxable income. Interest expenditure incurred for business purposes is deductible even if it does not immediately result in income.

The Supreme Court clarifies the distinction between income chargeable as capital gains and income taxable as business profits, guiding the assessment of whether a transaction constitutes a transfer of a capital asset or is in the nature of trade.

The Supreme Court holds that courts must look beyond the form to the substance of a transaction to discover the true state of affairs, especially when ingenuity is used to avoid tax and welfare legislations.

Subscription fees paid for online access to a database, such as 'scifinder', are not considered royalty if the use does not involve the exploitation of copyright. Such payments are also not classified as fees for technical services if they do not meet the 'make available' clause requirement.

The Assessing Officer has the discretion to select an accounting method and the assessee cannot compel the department to adopt a particular method.