“Section 8(3)(b)”
The decision most relied on for Section 8(3)(b) is PCIT v. Wipro Ltd. (140 Taxmann.com 223), cited in 192 judgments on BharatTax.
Leading authorities on Section 8(3)(b)
Exemption provisions under Chapter III, such as Section 10B(8), must be interpreted strictly, and any claim for such exemptions must be made in the return of income. The principles governing Chapter III (incomes not forming part of total income) differ from those for Chapter VIA (deductions in computing total income).
An object beneficial to a section of the public, as distinguished from an individual or group of individuals, qualifies as an object of general public utility under Section 2(15) and hence a charitable purpose. This applies even if the benefits are restricted to a specific caste, community, or professional group.
For the purpose of computing the deduction allowable under Section 80IA, the market price of electricity supplied by a captive power plant (CPP) is to be determined by adopting the rate at which the manufacturing unit has been purchasing electricity from the open market.
If agricultural operations are being carried out on land at the time of sale and revenue records indicate it is agricultural land, a presumption arises that it is agricultural in character, which the revenue must rebut. Permission to convert land to non-agricultural use does not render it non-agricultural if not obtained before the sale.
An entity's activities are not considered for a charitable purpose if they primarily involve commercial exploitation, even if conducted with business principles. Such commercial activities can lead to the denial of exemptions.
Blending of ore, even while loading it onto a ship using mechanical equipment, constitutes 'processing' of ore for sale. The machinery used in this process is considered plant or equipment used in processing.
When income arises from services rendered in India, it is taxable in India, irrespective of the place of performance, if such services are rendered in connection with the business or profession carried on in India. The enduring benefit test, though relevant, is not the sole determinant of whether payments for services constitute business income.
