“Section 80(2)(p)(a)”

Section 14A cannot be invoked to disallow expenditure if the assessee has not earned any exempt income in the relevant assessment year. The Explanation to Section 14A is prospective in nature.

The requirement to file a certificate or form (e.g., Form 10CCB, 10-IC) along with the return of income for claiming a deduction (e.g., under sections 80-IB, 115BAA) is directory regarding its timing. Such a deduction is allowable if the requisite form is filed before the final order of assessment, as procedural requirements should not override substantive benefits.

The requirement to file an audit report along with the return of income under section 80-IA(7) and similar provisions is directory, not mandatory. Such a report suffices if filed at any time before the assessment is framed.

Section 80-IB of the Income Tax Act requires profits and gains to be derived from any business of an industrial undertaking, not necessarily a direct nexus between the industrial undertaking's activity and the profits.

Extinguishment of rights in a capital asset includes transfer and attracts capital gains computation provisions. Demolition and conversion of a building into scrap constitutes a form of transfer.

Contracts involving development, operation, maintenance, financial involvement, and defect correction are eligible for deduction under section 80-IA(4), even when allotted by government bodies. Such contracts are not considered simple works contracts for the purpose of denying this deduction.

Profits of an eligible undertaking cannot be adjusted against losses from other undertakings when calculating deductions under sections like 80-IA, 80IB, or 80IC. The overriding provisions of these sections require that deductions are calculated based on the profits of the eligible unit itself, without set-off.

Contractors developing infrastructure facilities can be eligible for deductions under Section 80-IA if they undertake financial and technical risks, are liable for liquidated damages, and employ a qualified team, as established by referencing the CIT v. ABG Heavy Industries Ltd. case.