Income Tax : Bangalore ITAT held that the Revenue cannot deny the fifth-year deduction under Section 35D after consistently allowing the claim ...
Income Tax : Learn how small businesses in India can optimize tax benefits through strategic structuring, presumptive taxation, deductions, MSM...
Income Tax : Explore why amortizing preliminary expenses over 5 years is unjust for businesses. Urgent appeal to lawmakers for immediate tax re...
Income Tax : Income Tax Section 35D amended to remove condition of activity in connection with preliminary expenses of a concern approved by CB...
Income Tax : Section 35AD provides for investment -linked tax incentive for Specified Business. One such specified business of laying and opera...
Income Tax : ITAT Bangalore held that a REIT, being a trust and not a company, is not eligible for deduction under Section 35D(2)(c) on IPO and...
Income Tax : Bangalore ITAT held that mine development expenditure incurred by a mining contractor was allowable as a revenue deduction under S...
Income Tax : The ITAT Mumbai held that the assessee's convertible debentures lacked the liability component required for classification as Comp...
Income Tax : The Tribunal held that once a Section 35D claim was accepted in earlier years, it could not be disallowed in the final amortizatio...
Income Tax : The Bangalore ITAT held that a disallowance under Section 14A read with Rule 8D cannot survive without the Assessing Officer recor...
Income Tax : Find out the latest Income Tax amendment in 2023, introducing new rules for preliminary expenses under section 35D. The Ministry o...
JCIT (OSD) Vs Adani Logistics Ltd. (ITAT Ahmedabad) During the course of assessment proceedings the AO observed that the appellant has incurred an amount of Rs. 6,00,00,000/- on account of legal and professional fees paid to one M/s. Emerging India Investment Advisors Pvt. Ltd. It was further found by the Ld. AO that such expenditure […]
Section 35D of Income Tax Act provides for Amortisation of preliminary expenses. As per Section 35D, any capital expenditure did before the commencement of operation of specified business then such expenditure is allowable as a deduction under the income tax in 5 equal annual installments subject to the fulfilment of different conditions given under the […]
Section 35D of the Income Tax Act, 1961 deals with the Amortization of Expenditure incurred in respect of Preliminary Expenses. Preliminary Expenses: These are those expenses which are incurred for setting up of new business i.e., before commencement, or for extension of existing undertaking or in connection with setting up of a new unit. These […]
Where in service sector, the entity has involved itself in various kinds of steps, some of which are preliminary to setting up the main substantial commercial venture such as appointment of key personnel, preparation of draft model development agreement and initiation of process to tender financial and advisory services, then, claim for deduction of depreciation, preliminary expenses and employee’s remuneration was to be allowed.
There is a primary difference between the preliminary and preoperative expenses. Preliminary Expenses / Pre-incorporation expenses are those expenses incurred prior to incorporation of the LLP. Pre-operative expenses are incurred after incorporation of business but before commencement of business operations.
