business activity

Activity Codes are numerical codes that are used to define the activities of an economic unit. These codes are developed by National Industrial Classification (NIC) 2008. It is a standardized system of classification of economic activities essential for meaningful collection of data relating to such activities. This classification does not draw the distinction according to the kind of ownership, type of legal organization, type of technology and scale or mode of operatio.. Full Article

This article summarizes recent ruling of the Madras High Court (HC) in the case of CIT v M/s Hi Tech Arai Limited (Taxpayer) [Tax Case (Appeal) Nos. 670 and 671 of 2009] on the issue of allowability of additional depreciation on newly set-up windmills, under the Indian Tax Law (ITL), where the setting up of windmills had no connection with the main business activity of the Taxpayer. The HC held that, for the purpose of claiming additional depreciation under the ITL, it i.. Full Article

Foreign companies who are engaged in manufacturing and trading activities outside India are allowed, by Indian law, to set up branch offices in India for the following purposes: Export/Import of goods. Rendering professional or consultancy services. Carrying out research work, in which the parent company is engaged. Full Article

New MVAT Audit Form 704 Additional responsibilities as an Auditor Additional features to be reported in New Form 704 Issues and Difficulties Welcome Changes and Redundant Sections in Old Form 704 Full Article

SUMMARY OF CASE LAW Merely because income is attached to immovable property, it cannot be the sole factor for assessment of such income as “income from house property. CASE LAW DETAILS Decided by: ITAT, DELHI BENCHES `F’: NEW DELHI, In The case of: Bigg Investments & Finance Pvt. Ltd. v.DCIT, Appeal No.: ITA Nos. 5367 & 5368/Del/04, Decided [...] Full Article

SUMMARY OF CASE LAW Exploitation of the property by one of the group concerns cannot be construed as exploitation by the assessee-company; the commercial asset has to be exploited by the assessee in the course of its business activity for the purpose of claiming the income as business income.  CASE LAW DETAILS Decided by: ITAT, [...] Full Article