“Section 18(1)(a)”
The decision most relied on for Section 18(1)(a) is Pullangode Rubber Produce Co. Ltd. v. State of Kerala (91 ITR 18), cited in 666 judgments on BharatTax.
Leading authorities on Section 18(1)(a)
Admissions, whether made through entries in account books or statements, are important pieces of evidence but are not conclusive. An assessee has the right to demonstrate that an admission made by them is incorrect or can be retracted.
Orders that are inordinately delayed are liable to be recalled and heard afresh, and the Appellate Tribunal President should frame guidelines for timely disposal of appeals.
The Mumbai Tribunal has held that the term 'process' in relation to royalty under Section 9(1)(vi) of the Income Tax Act is not defined and must be considered within the contemplation of the term, potentially impacting its application under DTAAs. This decision distinguished itself from the facts of other cases, including those involving broadcasting and advertising airtime.
The scope of Section 43B and Section 36(1)(va) of the Income Tax Act are distinct, meaning they cannot be read together to determine an assessee's entitlement to a deduction for belatedly paid employee contributions.
Expenditure incurred on a business project that fails to materialize or is abandoned due to reasons not attributable to the assessee is treated as revenue expenditure and is deductible.
Penalty for concealment of income cannot be imposed merely due to a difference of opinion between the taxpayer and the Assessing Officer; there must be an intention to evade tax liability.
Fees for technical services (FTS) under Section 9(1)(vii) are not taxable if they are not 'technical' in nature or rendered in India. Services are not necessarily FTS if they are managerial and provided to an associated enterprise.
Expenditure incurred voluntarily for Corporate Social Responsibility (CSR) purposes is not disallowed if Section 37(1) Explanation 2, which applies to statutory obligations, is not triggered. Additionally, Section 37 is prospective from AY 2015-16, making it inapplicable for AY 2013-14 disallowances.
