business purpose

The Income-tax Appellate Tribunal, Mumbai in the case of Mrs. Bakhtawar B Dubash v. DCIT, Mumbai (ITA No. 403 1/Mum/03), Mrs. Sudha D Dubash v. DCIT, Mumbai ( ITA No. 4032/Mum/03) has held that an amount disallowed in the hands of the Company for corporate tax purposes, should not be taxed again in the hands of its Director as the same amount cannot be taxed twice. Full Article

Once it is held that the business transactions do not fall within section 2(22)(e), one need not to go further to section 2(22)(e)(ii) to take away the basic meaning, intent and purport of the main part of section 2(22)(e). Full Article

In India, the law is settled that tax avoidance is legal and evasion is not. A taxpayer may create a device to arrange his commercial affairs to minimise his tax liability and its acceptance is based on operation of law. While revenue authorities are entitled to decipher the true meaning of a transaction, they cannot [...] Full Article

SUMMARY OF CASE LAW Once commercial angle of the expenditure is established as contemplated by section 37(1) of the Income-tax Act, there is no difference in the corporate membership or a membership of working partner in a club for the purpose of said section. CASE LAW DETAILS Decided by: ITAT, `D’ BENCH, MUMBAI, In The case [...] Full Article

  SUMMARY OF CASE LAW The assessee may make an imprudent business decision but the same itself does not empower the Revenue to disallow legitimate and bona fide business expenditure.  CASE LAW DETAILS Decided by: ITAT, `D’ BENCH, AHMEDABAD, In The case of: Shivganga Builders Pvt. Ltd. v. ACIT, Appeal No. : ITA NO. 1189/AHD/2004, [...] Full Article

SUMMARY OF CASE LAW When the assessee has already utilized the money from time to time for its business purpose and having been taken benefit of utilizing the money for its business, now cannot say that the debt, in question, has not become time-barred and, therefore, the said unclaimed amount should not have been treated [...] Full Article

  CASE LAW DETAILS Decided by: ITAT, `F’ BENCH, MUMBAI, In The Case of : Kusum R. Ghuwalewala v. ACIT , Appeal No. : ITA No. 3408/Mum/2005, Decided on:February 12, 2009. RELEVANT PARAGRAPHS: 8. We have considered the issue. It is the assessee 1s contention that the assessee is paying secret commission and the amount [...] Full Article