“Section 35(2)(a)(b)”

An assessee engaged in the manufacture or production of an article or thing is entitled to additional depreciation under Section 32(1)(iia) for new machinery or plant, such as a windmill for power generation, even if it is not directly used in the primary manufacturing activity.

Disallowance under Section 40A(2)(b) is not maintainable when both the payer and payee are assessed at the maximum marginal rate, as it results in a revenue-neutral situation.

Interest paid on delayed remittances of service tax is compensatory in nature and not a penalty hit by the Explanation to Section 37(1) of the Income Tax Act, 1961, making it a allowable business expenditure.

Interest chargeable under section 201(1A) of the Income Tax Act is not penal in nature and therefore cannot be waived on the basis of intentional default or other grounds.

The prescribed authority's failure to send intimation in Form 3CL does not disentitle an assessee from claiming deduction under section 35(2AB) of the Act. Amendments to Rule 6(7A) apply prospectively from July 1, 2016, meaning prior to this date, Form 3CL approval was not essential for the quantification of weighted deduction under section 35(2AB).

Royalty payments for technical know-how are revenue expenditure if they do not result in an enduring advantage in the capital field. The assessee is entitled to deduct such royalty payments as a revenue expenditure.

Share application money received from non-residents requires scrutiny of the creditworthiness of the creditor and the source of funds, even if the transaction appears prima facie valid. Such scrutiny is essential for assessing the genuineness of the credit.

Reassessment proceedings initiated by an Assessing Officer who does not exercise their jurisdiction independently but acts at the behest of a superior authority are invalid due to the non-satisfaction of a condition precedent.