Income Tax : ‘Income’ & ‘Expenditure’ Pertaining to Pre-Commencement Business Period: Whether Capital or Revenue? – An Insight fo...
Income Tax : The government would introduce a scheme to provide a subsidy for advancing the development of industries mainly in backwards areas...
Fema / RBI : In CBS environment , most of the times , Management response is usually as All charges calculation and charging is done by system ...
Income Tax : When a lease is transferred it involves payment of some transfer charges to the lessor for the transfer of lease as well as paymen...
Income Tax : The alarming rate of ever increasing pollution is a matter of concern for each of us especially those living in the territory of D...
Finance : “There is no specific provision in Indian tax laws governing the deductibility of the payments made for acquiring spectrum,” a...
Income Tax : ITAT held that entries in the books of accounts do not dictate tax treatment. As long as expenses were allowable under relevant se...
Income Tax : The issue under consideration is whether the expenditure incurred by the assessee on the lease premises towards civil furniture, ...
Income Tax : ACIT Vs Bajaj Holdings & Investment Ltd (ITAT Mumbai) The issue under consideration is whether the replacement of jigs and fix...
Income Tax : The issue under consideration is whether the expenditure incurred in renovation and redecoration of rooms in a hotel is a revenue ...
Income Tax : It was submitted by the assessee that ISO 27001 and ISO 9001:2008 certification are valid for a period of three years but they are...
The assessee incurred expenditure on issue of convertible debentures. The department claimed that convertible debentures were akin to shares and that in line with the judgement of the Supreme Court in Brooke Bond 225 ITR 798 the expenditure was capital in nature. HELD rejecting the claim that:
CIT vs. Enron Oil & Gas (Supreme Court) – Where the Assessee had entered into a production sharing contract with a consortium which was governed by section 42 of the Act and the assessee made contribution at a certain rate to the consortium whereas the expenditure incurred out of the said contribution stood converted on the basis of a different exchaneg rate which exercise resulted into a loss on conversion of foreign currency to the assessee and the AO held the loss to be a notional loss
FOR the Income Tax Department, the latest ruling of the Larger Bench of the Punjab & Haryana High Court amounts to a big win. And, at the centre of the dispute was whether the interest paid on borrowed capital for purchasing new plant and machinery before the same is put to use is revenue expenditure or to be added to the ‘actual cost’ of the asset? What further complicated the issue was the fact that the assessee was a running company and wanted to set up a new plant by buying new machinery out of borrowed capital.
