"13 September 2008" Archive

No business profit on conversion of stock into asset – ITAT

ACIT vs. Bright Star Investment (ITAT Mumbai) - Where the assessee had converted stock-in-trade into investments at their book value and later sold them and offered to tax the difference between the indexed book value and the sale proceeds as capital gains and the AO took the view that the difference between the book value and the FMV on ...

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Posted Under: Income Tax |

Deduction Under section 80HHC is allowable on Proportionate Basis – SC

Mysodet (P) Ltd vs. CIT (Supreme Court) -Where in respect of the asst. year 1990-91, the assessee claimed deduction under section 80-HHC on traded goods on the proportion that the export turnover bore to the total turnover even though there were no profits from the export activity and the High Court held, relying on IPCA Laboratories vs. ...

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Posted Under: Income Tax |

Loss in Legal arising as a result of infraction of the law is not allowable :- Bombay HC

Mahendra D. Jain vs. ITO (Bombay High Court) - Where the assessee is carrying on an illegal activity which is treated as a business, any loss arising in such business as a result of confiscation by the authorities is an allowable loss. However, where the assessee is carrying on a lawful business, any loss arising as a result of infraction...

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Posted Under: Income Tax |

SET Satellite – High Court reverses ITAT judgement

23 (23/07/1969)

SET Satellite (Singapore) vs. DDIT (Bombay High Court) - Where the assessee had a ‘Dependent Agency Permanent Establishment’ (‘DAPE’) (“SET India”) in India and it was admitted by the Revenue that the assessee had paid ‘arms length’ remuneration to the said dependent agent but the Tribunal still held (106 ITD 75) that notw...

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No tax on sale of TDR – ITAT Bombay

ITO vs. Lotia Co.op Hsg. Soc. (ITAT Mumbai) - Where the assessee was a co.op society and it and its members entered into a development agreement with a builder pursuant to which Tranferable Development Rights (TDR) entitled to be received under the Development Control Regulations was assigned to the developer for the repairs and redevelop...

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Posted Under: Income Tax |

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