Daily Archives: October 13, 2026

Power generation qualifies as production, entitling manufacturers to additional depreciation under Section 32(1)(iia)

By | October 13, 2026
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Power generation qualifies as production, entitling manufacturers to additional depreciation under Section 32(1)(iia) Issue Whether power generation comes within the scope of “production” under Section 32(1)(iia) of the Income-tax Act, 1961 to qualify for additional depreciation on new plant and machinery installed at a Captive Power Plant (CPP) and Wind Power Plant (WPP). Whether an… Read More »

Supreme Court affirms no Section 14A disallowance without exempt income and allows premises vacation fee as revenue expense

By | October 13, 2026
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Supreme Court affirms no Section 14A disallowance without exempt income and allows premises vacation fee as revenue expense Issue Issue 1: Whether any disallowance under Section 14A can be made when no exempt income was earned by the assessee during the relevant assessment year. Issue 2: Whether compensation paid for vacating premises to secure it… Read More »

Transit insurance claims, provisions reversed, and non-resident fees qualify for section 80-IC deduction or exemption, whereas vendor penalties do not.

By | October 13, 2026
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Transit insurance claims, provisions reversed, and non-resident fees qualify for section 80-IC deduction or exemption, whereas vendor penalties do not. Issue Issue 1: Whether transit insurance claim receipts for loss or damage to operational assets are profits derived from an eligible industrial undertaking qualifying for deduction under Section 80-IC. Issue 2: Whether the reversal of… Read More »

Power subsidy granted to reimburse operational electricity charges without capital asset creation is a taxable revenue receipt

By | October 13, 2026
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Power subsidy granted to reimburse operational electricity charges without capital asset creation is a taxable revenue receipt Issue Whether an electricity subsidy received from the government to reduce recurring power expenses during manufacturing operations, without any requirement to acquire capital assets or construct factory infrastructure, constitutes a capital receipt or a taxable revenue receipt under… Read More »

Reviews applicants’ routing of demonetized cash through benamidars back to themselves constitutes a valid benami transaction

By | October 13, 2026
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Reviews applicants’ routing of demonetized cash through benamidars back to themselves constitutes a valid benami transaction Issue Whether the definition of a ‘benami transaction’ under Section 2(9)(A) of the Prohibition of Benami Property Transactions Act, 1988 requires concealment of the beneficial owner or future benefit to a third party, or whether providing consideration for property… Read More »