• Sec. 147 – SC Johnson Products (P.) Ltd vs. ACIT

[2017] 88 taxmann.com 317 (Del HC)

Reassessment permissible if assessee had in computing depreciation on goodwill on purchase method instead of ‘pooling of assets’ method

• Sec. 14A r.w.r. 8D – Pest Control India Pvt Ltd vs. DCIT

ITA NO.5048 & 5608/MUM/2016 (AY 2012-13) (Mum Trib)

By no stretch of imagination can sec. 14A or Rule 8D be interpreted so as to mean that entire tax exempt income is to be disallowed. Also the dis allowance cannot exceed the exempt income

• Sec 14A CIT vs. Bengal Finance & Investments Pvt. Ltd

ITA No.337 of 2013 (Bom HC)

Amount disallowed u/s 14A of the Act cannot be added to arrive at book profit for the purpose of Sec. 115JB of the Act

In this order, it has been laid down that unless particular expenditure is debited to P&L account relating to earning of exempt income, the same cannot be imported into the computation of book profit as clause (f) of Explanation 1 to section 115JB which only refers to amount debited to P&L account

• Sec. 56(2)(viib) – Microfirm Capital (P.) Ltd. vs. DCIT

[2018] 89 taxmann.com 23 (Kol Trib)

Redeemable Non-Cumulative Preference Shares cannot be excluded from ambit of section 56(2)(viib)