“Section 21(1)”

The discount arising from the grant of Employee Stock Option Plans (ESOPs) is an allowable business expenditure under Section 37(1) of the Income-tax Act, 1961, as it is an ascertained liability, not a contingent one, and constitutes a revenue expense rather than a capital expense.

Where a reasonable cause for delay in filing an appeal exists, the period of delay may not be a relevant factor for condonation. The court has condoned even substantial delays, such as nearly 21 years, based on the presence of a reasonable cause.

The primary issue concerns the eligibility for deduction under Section 80IA(4) of the Income Tax Act, 1961, particularly concerning whether an assessee is a 'developer' or 'contractor' for infrastructure projects. The case appears to discuss the impact of subsequent amendments, such as the Explanation inserted by the Finance Act, 2007, on the classification of contracts and the availability of such deductions.

The Transfer Pricing Officer (TPO) is empowered to determine the Arm's Length Price (ALP) of an international transaction at "nil" if the assessee fails to establish that payments made to an Associated Enterprise (AE) were commensurate with the benefit received or the quality of services availed. This determination constitutes an adjustment to ALP, distinct from a disallowance of expenditure.

The power to cancel registration granted to a trust is not an implied power under the General Clauses Act and requires express legislative provision. An express power to cancel registration was introduced later via amendment.

An order passed by the CIT under Section 12A of the Income Tax Act is quasi-judicial. Until October 1, 2004, there was no express provision in the Act for the CIT to cancel a registration certificate once granted.

A CBDT notification issued under section 90(3) of the Income-tax Act is clarificatory in nature and effective from April 1, 2004, the date section 90(3) was introduced.

Amounts referred to under section 40(a)(ia) of the Income-tax Act, 1961, are not deductible in computing income chargeable under the head 'Profits and gains of business or profession'.