17 June 2010
Under section 41(1), the revenue taxes as income what it had earlier allowed as a deduction. It creates a liability to tax only in those cases where an allowance had been actually granted in the preceding years.
Supreme court decision In CCIT Vs. Kesaria Tea Co Ltd (2002) 254 ITR 434 can be referred to know further about the general application of the said provision.
21 June 2010
if loan(Principal) is taken for a capital purpose than its not treated as income but if its for revenue purpose than it will be treated as income
any deduction claimed earlier in case of loan than such will be treated as income.
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