Detailed analysis of the ITAT Delhi verdict in BSC C and C Kurali Toll Road Ltd. vs ACIT, addressing key tax dispute issues and depreciation claims.
ITAT Delhi held that long term capital gain on sale of shares in case of the assessee company, being resident of Mauritius, is not liable to be taxed in India.
ITAT Delhi held that disallowance u/s. 14A of the Income Tax Act unjustified as sufficient interest free funds were available for investment. Also held that inclusion of bank charges and bank guarantee charges for making disallowance u/s. 14A unjustified.
ITAT Delhi held that penalty u/s 271(1)(c) of the Income Tax Act unsustainable as allowability of deprecation on non-compete fee is highly contentious as different views are taken by various High Courts and matter is pending before Supreme Court.
ITAT Delhi held that addition on account of unexplained money under section 69A of the Income Tax Act unjustified as revenue failed to prove that cash sales are fictitious/ bogus.
ITAT Delhi held that when shares are held as investments, there will be no business income and accordingly provisions of section 28(iv) of the Income Tax Act cannot be invoked.
Read the detailed analysis of Prem Prakash Sethi vs ACIT (ITAT Delhi) case where ITAT deletes addition on unexplained jewellery and cash. Full text of the order included.
ITAT Delhi held that indexation benefit is available to the assessee on the basis of his cost of acquisition of the property and capital gain is to be calculated accordingly.
ITAT Delhi held that expenditure in Built Operate and Transfer (BOT) project giving rise to an intangible assets eligible for claiming depreciation @25% on road construction admissible.
ITAT Delhi held that written off of obsolete inventory allowable as prepared in accordance with accounting standards and duly got prepared audited report of an independent auditor.
