Description: Given the definitions of the term “business” and “capital asset” in Ss. 2(13) and 2(14), shares, If held for more than 12 months, will be a long- term capital asset, in spite of continued and systematic dealings; On facts, as the assessee had engaged a portfolio manager to look after to buy and sell […]
Read MoreDescription: Loss was allowed for earlier and subsequent year. Appellate Tribunal refused to rectify the order. The Apex Court remanded the matter to Tribunal for consideration afresh in light of CIT vs. Woodward Governor India (p.) Ltd. (2009) 312 ITR 254 (SC) (A.Y. 1998-99). Perfetti Van Melle India (p.) Ltd. vs. CIT (2011) 334 ITR […]
Read MoreDescription: Where an order has been passed by the AO without granting the assessee an opportunity to cross examine and the assessee preferred a writ petition. The Apex Court held that the High Court ought not to have set aside the order of assessment but to have only granted the assessee an opportunity to cross […]
Read MoreDescription: Where assessee is not a shareholder of the paying company, the dividend is not assessable in its hands. The legal fiction in Section 2(22) (e) enlarges the definition of dividend but does not extend to, or broaden the concept of a “shareholder”. CIT vs. Ankitech Pvt. Ltd. (Delhi) (High court). Source: 1. www.aiftponline.org 2. […]
Read MoreDescription: S.47 (iv): Capital gains – Capital loss – Transfer of business and work-in-progress – 100 per cent subsidiary. Assessee transferred business and work- in – progress to hundred percent subsidiary, which is Indian company, In view of provisions of section 47 (iv), capital gains on such transfer of capital asset was not chargeable to […]
Read MoreDescription: S.36 (1) (iii): Business expenditure – Interest on borrowed capital – Advance to sister concern – Mutual accommodations – Commercial expediency. When there is mutual accommodation by both parties in terms and lending and borrowing from each other, the assessees claim of commercial expedient has to be accepted. Ramkrishn Textiles P.Ltd. vs. ITO (2011) […]
Read MoreDescription: S.12A : Charitable Trust – Registration as public Trust not necessary for S.12A “charity” registration. Registration as a public Trust is not a condition precedent for grant of registration under section 12A. There is no requirement in the Income tax Act that the institution constituted for advancement of charity, must be registered as a […]
Read MoreDescription: S.254(2) : Appellate Tribunal – Rectification of mistakes – Orders not cited – Tribunal entitled to do “own research” and rely on non-cited cases. Reliance and reference to reasons stated in another decision cannot be regarded as a mistake apparent from the record. It is not unusual or abnormal for Judges or adjudicators to […]
Read MoreDescription: Expenditure incurred on heart operation was not deductible. Under section 31 also 37 (1) because of following reasons: Heart cannot be considered plant as it did not have any mention in assessee’s balance sheet under assets and its cost of acquisition could not be determined. Deduction under section 37 (1) cannot be granted as […]
Read MoreDescription: Interest on enhanced compensation of land is liable to be taxed once it was received . Dy CIT vs. Gopal Ramnarayan Kasat (2011) 240 CTR 266/54 DTR 228 (Bom.) High Court ). Source: 1. www.aiftponline.org. 2. AIFTP TIMES Volume.No.2 July, 2011,Page No. 5. Our Comment: Accrued interest on enhanced compensation on acquisition of […]
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