India Income Tax Made Simple

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Excerpt: The assessee Company was doing job work with its own machinery.In F.Y.2004-05 it give the premises with machinery on lease.Whether the income should be assessed u/the head Income from House property or business income.kirans_agrawal@,,,……….comThis is a classic question and decision whether the income is from house property or business income is a matter of facts which you have not given. First of all , it should be understood that rent on machinery can not be assessed under house property . The rental of factory building can be . But prima facie , it seems that the assessee was exploiting…

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Excerpt: Advanced TopicAn assessee had been allowed sales tax claim u/s 43B pursuant to a scheme of the state government whereby the government had converted his sales tax liability into a loan. The CBDT had issued two circulars—No.496 in 1987 and 674 in 1993—to provide that in cases where incentives were granted to an assessee by way of sales tax deferment, payment of ST will be deemed to have been made and no dis allowance will be made u/s43B.The assessee had been allowed such a deduction in A Y 1994-95, when his unpaid ST was converted into a loan.The loan instalment…