Section 35

Section 35 — the law in short

What the courts have decided on section 35, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• CIT v Ciba of India Ltd Supreme CourtCuts both ways
  I pay my foreign parent a percentage of sales for the right to use its patents, trade marks and know-how while our agreement runs. Is that revenue expenditure or capital?
  Revenue. The Supreme Court held the contributions paid by Ciba of India to its Swiss parent were allowable under section 10(2)(xv) of the 1922 Act. The assessee acquired merely the right to draw on the Swiss company's technical knowledge for a limited period in running its business; the Swiss company parted with no asset and the assessee acquired no asset or advantage of an enduring nature. The claim under the scientific research provision failed, because money paid to recoup another's research spending is not expenditure laid out by the assessee on research relating to its own business. A separate claim for a share of patent litigation costs also failed.
• CBDT Circular 7/2024 CBDT Circulars & InstructionsHelps taxpayer
  Our Form 10AB was rejected for late filing. Does the CBDT let us apply again?
  Yes, but only within the window this circular opened. The due date for Form 10A and Form 10AB was extended to 30 June 2024, and entities whose Form 10AB was rejected solely for late filing or for filing under the wrong section code could file fresh applications within that extended time.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.