Section 41(1) is a deeming fiction and seeks to tax receipts or benefit which may not strictly be ‘income’, the burden to prove that a particular benefit or receipt falls within the four corners of the provisions of section 41(1) lies upon the revenue.
In Divi’s Laboratories Ltd.’s case (supra), it was held that commission paid to a non-resident agent for services rendered outside India is not chargeable to tax in India and that hence, no disallowance can be made.
Definition of Infrastructure Lending’ in terms of which the definition of ‘infrastructure lending for the purpose of financing of infrastructure by the banks and Financial Institutions’ has been harmonized with that of the Master List of Infrastructure sub-sectors’ notified by the Government of India on March 27, 2012. It has been decided to harmonise the definition of infrastructure lending for NBFCs with that of banks.
An application for grant of benefit under this scheme shall be filed in ANF 3F (this ANF 3F will be notified subsequently) to RA concerned. For the purpose of the scheme, export performance shall not be allowed to be transferred from any other IEC holder. Since the benefit is admissible on realisation basis, applications can be filed after 1st April 2013. Last date for filing application will be as per para 3.11.9 of HBP v1 and late cut provisions of para 9.3 of HBP v1 2009-14 will be applicable.
The difference between a write off of a debt as irrecoverable and a provision against the same on account of or for it being bad and doubtful for recovery, is not technical but factual and, further, real and not imaginary.This is more so in view of the express provision of law by way of Explanation to section 36(1)(vii), brought on statute by the Finance Act, 2001 with effect from 01-04-1989.
Incremental Exports Incentivisation Scheme -Objective (a) The objective of the Scheme is to incentivize incremental exports. Entitlement (b) An IEC holder would be entitled for a duty credit scrip @ 2% on the incremental growth (achieved by the IEC holder) during the period 01.01.2013 to 31.3.2013 compared to the period from 01.01.2012 to 31.3.2012 on the FOB value of exports. Incremental growth shall be in respect of each exporter (IEC holder) without any scope for combining the exports for Group Company.
