HC remanded matter as ITAT upheld order of CIT(A) without recording any finding

INCOME TAX : Apportionment of common expenses of STPI and non-STPI unit of assessee was to be done on basis of turnover of each of these units so as to compute deduction under section 10A in respect of STPI unit

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Loss arising on sale of business assets at amount less than WDV to be treated as business loss u/s 41

INCOME TAX : Where certain assets of block of assets, not being immovable property of assessee, were sold during regular course of business, before it was wound up during relevant previous year, loss occurring on such sale at a figure less than written down value of assets should be treated as 'Business Loss' under section 41(2)

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Broken period interest paid by bank on Govt. securities allowed as deduction if same was treated as income if earned

INCOME TAX : Where assessee-bank from outset had been treating Broken Period Interest income accrued from sale of government securities as its business income under section 28(i), Broken Period Interest paid by it was to be allowed as permissible deduction

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Deduction for bad debt doesn’t prerequisite money lending licence; writing off in books of account is sufficient

INCOME TAX : Writing off of irrecoverable loan in books of account sufficient to claim deduction for bad debts under section 36(1)(vii), assessee not required to be in money lending business to claim said deduction

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197438/deduction-for-bad-debt-doesn’t-prerequisite-money-lending-licence-writing-off-in-books-of-account-is-sufficient.aspx

Sum paid for construction of swimming pool which would display assessee’s name not allowable as advt. exp.

INCOME TAX : Where assessee, a partnership firm, contributed certain sum to a school for purpose of construction of a swimming pool in that school and claimed said sum as advertisement expenditure on ground that name of assessee was displayed near swimming pool and hence same would promote brand of assessee, since

from www.taxmann.com Latest Case Laws https://www.taxmann.com/research/direct-tax-laws/top-story/101010000000197262/sum-paid-for-construction-of-swimming-pool-which-would-display-assessee’s-name-not-allowable-as-advt-exp.aspx

Initiation of penalty u/s 271(1)(c) pre-requisite recording of satisfaction by AO; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that recording of satisfaction by Assessing Officer that there was concealment of income or that any inaccurate particulars were furnished by assessee was sine qua non for initiation of penalty proceedings and in absence of such satisfaction, both Commissioner (Appeals) as well as Tribunal had correctly ordered to drop penalty proceedings against assessee

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Reassessment by placing mere reliance on investigation by Enforcement Directorate was unjustified; SLP dismissed

INCOME TAX : SLP dismissed against High Court ruling that reopening of assessment on basis of investigation conducted by Enforcement Directorate, without Assessing Officer making any independent inquiry himself to hold that assessee had paid bribe to Iraqi officials and therefore same was required to be added to income of assessee was not justified

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