method of accounting

CASE LAW DETAILS Decided by: ITAT, DELHI BENCH `A’ : New Delhi,  In The case of: Ananta Raj  proteins Ltd. v. DCIT , Appeal No.: ITA No. 890 & 891/D/2007, Decided on: June 30, 2009 RELEVENT PARAGRAPH 13. It may be mentioned that provisions of section 145A were inserted by the Finance Act No. 2, 1998 [...] Full Article

SUMMARY OF CASE LAW Interest on the bank deposits held on account of “client account” is assessable under the head “profits and gains of business or profession” and the same would, therefore, be part of the professional income for the purposes of computation of deduction under section 40(a)(ii) of the IT Act, 1961, on account [...] Full Article

CASE LAW DETAILS Decided by: ITAT, `A’ BENCH, MUMBAI In The case of: Mazagon Dock Ltd. v. JCIT Appeal No. : ITA No. 3947/Mum/2002 & 150/Mum/2003 Decided on: February 18, 2009 SUMMARY OF CASE LAW The estimated loss under a bona fide change in the method of valuation is an allowable deduction; however, merely because [...] Full Article

Chargeability of interest income to tax when same is only technically accrued as per mercantile system of accounting followed by assessee. The provisions of section 145 of IT Act cannot override section 5 of the Act; if income has neither actually accrued nor received within the meaning of section 5; whatever section 145 may say, [...] Full Article

Self assessment - The assessee is required to make a self assessment and pay the tax on the basis of the returns furnished. Any tax paid by the assessee under self assessment is deemed to have been paid towards regular assessment. Regular assessment - On the basis of thereturn of income chargeable to tax furnished by the assessee an intimation shall be sent to the assessee informing him about the tax or interest payable or refundable to him. Full Article

CIT vs. Bilahari Investments (Supreme Court) - In the case of a chit fund following the ‘completed contract method of accounting’ and offering income at the end of the chit, held, approving the method: (i) Recognition/identification of income under the Act is attainable by several methods of accounting including the completed contract method or the percentage of completion method. Full Article

WITH India getting rapidly integrated to the global economy, making payments either for services or reibursement to a non-resident company or individual has become common for the India Inc. But what has not become common is the practice of deducting tax at source (TDS) under Sec 195. And this case is illustrated best in the latest decision of the ITAT which has held that it is obligatory for the payer to a non-resident company to deduct TDS u/s 195 without going into any.. Full Article