Cessation of trading liabilities can be treated as income of assessee under section 41(1) of the Income Tax Act in the assessment year in which such liability ceased to exist. However the question when the said liability ceased to exist is a debatable questions and often revenue department and the assessee are at loggerheads at...
For Depreciation ,Actual Sale Price Should be Reduced , Not Stamp Duty Valuation
October 11, 2011 by
The rule of market value as per stamp duty authority valuation was being applied to determine depreciation.This issue reached Mumbai high Court in CIT vs Cable Corporation of India Ltd [2011] 336 ITR 56 vide an appeal by Income Tax Department against order of ITAT. Fact of the Depreciation Case The assessee had sold a...
Calcutta HC: Tax Related To Next Year Paid in Advance Is Allowable in Year of Payment Only !
July 27, 2011 by
Calcutta High Court in recent order in case of Paharpur Cooling Towers Ltd. vs CIT passed on 15 July 2011 delivered a very important issue regarding disallowance of tax paid u/s 43B of the Income Tax Act. The Court held that taxes paid in advance also are eligible for deduction u/s 43B of the I...
Can Insurance Agent or Chartered Accountant take benefit of Section 44AD?
May 14, 2011 by
The title of this blog post could easily be “How to differentiate between business and profession ?” . However, a different title is applied to suit Mr Anoop Bhatia , a readers of this blog who asks “Sec 44AD has been substituted wef A.Y. 2011-12 to include within its scope all such businesses (except) the...
Can unabsorbed depreciation be adjusted with salary income?
March 31, 2011 by
While it is generally known that there is absolutely no loss which can be adjusted with Salary income while computing the total income of an individual. Only exception is the income from house property under which when loss is computed for self occupied house, interest is adjustable with the salary income , to that extent...
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