Page 9 - Income Tax Act
Enough provisions to scrutinise accounts of political parties, says CBDT
There are enough provisions in the Income Tax Act to scrutinise the accounts of political parties even though their income is tax exempt, says govt
 "Enough provisions to scrutinise accounts of political parties, says CBDT")
I-T amendment bill is unleashing tax terrorism on India: Congress
The party also said the Prime Minister Narendra Modi has created an "artificial drought" in the country and demonetisation is a "panic strike" on the people of the country.
 "I-T amendment bill is unleashing tax terrorism on India: Congress")
Subsidies counted for tax benefit
The Supreme Court has ruled that subsidies given as incentives to industries set up in backward areas are deductible under the Income Tax Act. In a large number of appeals moved by the commissioner of income tax against judgments of the Gauhati high court, the apex court rejected the contention of the tax officials that amounts received as subsidies were revenue receipts and did not qualify for deduction under Section 80.The revenue authorities argued that as Section 80 spoke of profits and gains "derived from" any business, such profits and gains must have a direct nexus with the business. Subsidies do not have such a nexus and are grants from the government. Rejecting the argument, the Supreme Court ruled that so long as profits and gains emanated directly from the business itself, the fact that the immediate source of the subsidies is the government would make no difference, as subsidies like transport and electricity are only to reimburse costs actually incurred in the manufactur
