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

Auto component industry – product perfection/ development expenses held revenue

ByCA Gopal Nathani

Jan 15, 2022

The taxpayer in[2020] 16 ITR-OL 468 (Mad) made claim for deduction of large expenditure totalling 11 crores on perfecting the development of new design of moulds for auto components to the satisfaction of its customer.

The Court held that such expenditure was incurred in the ordinary course of business as it involves a constant process of perfecting the process of manufacturing the components.

What played importance in this case was that the new development as well as and existing manufacturing both were undertaken using the existing line of plant and machinery.