Commnr. Of Income Tax, Udaipur vs Mcdowell & Co. Ltd

The Supreme Court addressed the applicability of Section 43B of the Income Tax Act, 1961, determining that unpaid bottling fees, upon furnishing a bank guarantee, do not constitute actual payment for deduction purposes under Section 43B. The Court also clarified that depreciation on research and development assets related to a closed business is not permissible, and the nature of expenditure for new transformers must be assessed in light of existing assets. The matter was remitted to the Assessing Officer for further consideration based on established precedents.