It was held that once business is set up, expenditure incurred relating to such business have to be treated as revenue expenditure and allowed as deduction. As soon as an activity which is essential to carrying on the business is started the business must be said to have commenced.
Role of PCIT while according registration under section 12A is only to make himself satisfied about genuineness of activities to be carried out by assessee trust and compliance of such requirement of any other law for the time being in force by trust or institution material to achieve its object and then to accord registration.
Reassessment was bad in law beyond four years when the tax payer had disclosed the facts at the time of original assessment proceedings and the AO did not draw any adverse inference regarding the same.
Vidras India Ceramics Pvt. Ltd. Vs D.C.I.T. (ITAT Ahmedabad) The controversy that needs to be addressed so as to whether the assessee is eligible for deduction with respect to the provisions made against the trade debtors in pursuance to the explanation 1 to clause (vii) of section 36(1) of the Act. As per the explanation […]
Dive into Anuradha Pandey’s case vs. ITO (ITAT Varanasi). ITAT’s scrutiny on investment source from closing stock and debtors. Analysis of the disputed addition and its resolution
ITAT Delhi as regards contention of notice not properly serviced held that as per postal authorities explanation the assessee has refused to take notice and such refusal to take a notice is a good service.
ITAT Delhi held that assessee has option to choose any of the method i.e., book value method or discounted cash flow method to the Assessee for determining the value of its shares. The valuation so arrived by the expert under Discounted Cash Flow Method providing necessary basis of computation of projection needs to be accepted.
ITAT Chandigarh held that tax authorities cannot enforce any demand on the deductee if the amount of TDS deducted by the dedutor is not deposited with the Government.
ITAT Chandigarh held that registration u/s 12AA of the Income Tax Act granted as the primary objects of the assessee society are aimed at the advancement of the object of general public utility within the meaning of section 2(15) of the Act
ITAT Mumbai held that apart from the purchase and sale deeds of conveyance and 7/12 extracts from land revenue records, no other evidence has been brought on record by the assessee of having cultivated the land or carrying any agricultural activity. Accordingly, the same is treated as ‘capital asset’.
