“Section 41(1)(b)”
The decision most relied on for Section 41(1)(b) is CIT v. Varas International (284 ITR 80), cited in 79 judgments on BharatTax.
Leading authorities on Section 41(1)(b)
An appellate authority can admit additional legal grounds for the first time, even if not raised earlier, provided these grounds are purely legal, go to the root of the matter, and the relevant facts for their adjudication are already on record.
A credit amount outstanding for several years cannot be treated as a remission or cessation of a trading liability under Section 41(1) merely because the assessee could not prove the genuineness of the transaction or because the liability is barred by limitation.
Anticipated or foreseeable losses on fixed-price construction contracts are deductible in the year the loss is foreseen, aligning with accounting standards like AS-7. This approach is supported by decisions allowing deduction of foreseeable losses based on technical estimation.
The expression 'make available' in the context of fees for technical services means that the payer must come to possess the technical knowledge provided, enabling them to utilize it independently in the future. Services consumed without leaving anything tangible with the payer for future use do not constitute 'make available' of technical services, even if the benefit flowed directly to the payer.
