cairn energy india

The fact that even Capital expenditure is allowable as deduction under section 42 itself shows that it overrides the provisions of section 37 of the Act. Thus, the scheme of the Act makes it clear that the provisions of section 42 would prevail over general provisions of computing the income contained in sections 30 to 38. Hence, in our opinion, the provisions of section 40 cannot be invoked where the income is to be computed under section 42 of the Act. Full Article