Section 115O of the Income Tax Act
The decision most relied on for Section 115O is CIT v. Sadan Vikas (India) Ltd. (335 ITR 117), cited in 112 of the 68 judgments on BharatTax that turn on this section.
Leading authorities on Section 115O
Weighted deduction under Section 35(2AB) is allowable for R&D expenditure incurred even if the approval from the DSIR is granted in a subsequent assessment year, provided the application for approval was made in time. The assessee is entitled to the deduction if the approval is based on verification of details submitted.
Profits of an industrial undertaking eligible for deduction under sections 80-I, 80IB, or 80IC are computed without allocating common corporate or head office expenses that lack a direct nexus to the unit's industrial activity.
Income derived from the sale of scrap generated during the manufacturing process is eligible for deduction under sections 80IB and 80IC of the Income Tax Act, 1961.
Provisions for doubtful debts are not part of operating costs and are considered non-operating in nature when calculating operating profit. Only receipts and expenditures directly related to determining profit should be included.
Provisions for doubtful debts are non-operating in nature and should not be included in operating profit computation. Only receipts and expenditures directly related to determining profit are considered for operating profit.
Appeals challenging the levy of Dividend Distribution Tax (DDT) under section 115O of the Income-tax Act, 1961, must be filed specifically challenging such levy. Appeals filed with significant delays and without satisfactory explanation for the delay are liable to be dismissed in limine.
