Section 194LA of the Income Tax Act
The decision most relied on for Section 194LA is Additional/Joint/Deputy/Assistant Commissioner of Incometax/Income-tax Officer v. Mylan Laboratories Ltd. (137 Taxmann.com 178), cited in 60 of the 44 judgments on BharatTax that turn on this section.
Leading authorities on Section 194LA
Goodwill arising on amalgamation is entitled to depreciation. This principle is established by multiple High Court decisions.
Interest awarded under Section 28 of the Land Acquisition Act is part of enhanced compensation and cannot be taxed as 'Income from Other Sources' under Section 56(2)(viii). This decision reaffirms the principles laid down in CIT v. Ghanshyam (HUF).
Payments made for purchasing stock-in-trade or raw materials are considered expenditure for the purpose of Section 40A(3). An assessee's ignorance of a newly inserted prohibition on cash payments can lead to deletion of disallowances.
Payments made for purchasing stock-in-trade or raw materials are considered expenditure for the purpose of Section 40A(3). This view is supported by decisions from multiple High Courts.
When an assessee is unable to link cash withdrawn from a bank to subsequent cash deposits, and the withdrawals were not required for business purposes, such deposits will be considered unexplained income.
