The answer is NO as as per the decision of Supreme Court in CIT vs Kurji Jinabhai Kotecha(1977) 107 ITR 101(SC) . The decision of the court is very clear as far as issue of carry forward of speculative loss in illegal business is concerned . “The second question is with regard to the assessee’s claim...
Can illegal speculative loss be carried forward and adjusted with another speculative gains in subsequent years ?
May 18, 2010 by
Can notional interest be taxed under transfer pricing law ?
May 18, 2010 by
Yes, under transfer pricing mechanism , there is scope of notional interest taxation. This is held by Delhi bench F in Perot Systems TSI ( India) Ltd. vs. DCIT, ITA No. 2320 to 2322/Del/08, Delhi Bench ‘F’ order dated 30.10.2009. Facts of the case The aseessee, an India company, advanced interest free loans to its 100% foreign subsidiaries....
Can you claim exemption u/s 54 or 54F for constructing house on land owned by wife?
May 15, 2010 by
Capital gains exemption can be claimed u/s 54 or 54F if the sales consideration is invested in buying the house or constructing the house . It does not matter if the land on which construction is done is owned by spouse. This is what karnataka High court said in the deicision in case of CIT and Anr....
Are provisions on account of warranty claims allowable under I T Act?
May 14, 2010 by
YES, as per Supreme Court. Provisions are generally not allowable under I.T. Act as these are not actual expenditure. However, Supreme Court , based on the facts and circumstances of the case in Rotork Controls India P. Ltd v. Commissioner of Income-tax [2009] 314 ITR 62 (SC) held that the provision is allowable as expenditure u/s...
Will the introduction of stock-in-trade as capital in firm by a partner have capital gains tax?
May 13, 2010 by
Yes , even the the stock-in-trade will be suffer capital gains tax . This is as per the order of Special bench of Delhi Tribunal in DLF Universal Ltd vs CIT [128 TTJ 121 ] in which it was held that although S. 45 (3) applies when a capital asset is introduced into a firm...
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