1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Cardinal principle of business deduction

ByCA Gopal Nathani

Sep 16, 2020

The Supreme Court in National Co-operative Development Corporation v CIT in ITA Nos 505-07 of 2009 dated 11.9.20 held that In the matter of allowance of business deduction the source of funds from which the expenditure is made is not relevant. It is also not really relevant as to whether the expenditure is incurred out of the corpus funds ( capital receipt) or from the interest income ( revenue receipt) earned by the appellant-Corporation.

This case involved deduction for non refundable grants out of corpus funds received from the Central Government by a pass through entity.