1. As per ICAI suggested answer of nov2010 new: Q2a,speculation loss can’t be carried forward by XYZ Co(purchasing Co) after Amalgamation. TN Manoharan says it can be c/f.
2. Q 1(b): ICAI SA says Sec 54 exemption can be availed by 1 house only(Anand Bassappa’s case, 2 houses was allowed coz they were identical and opposite to each other;but in given case they are in different cities).
As per TN, Sec 54 is available in both houses.
3. Q2(b) ICAI :not valid
TN : AO’s action is valid. Expense should be disallowed.
4. Q3(b)(iv) : Why hasn’t5 lac not disallowed and added back?
5. Q3(b)(vi): Why they(icai) have reduced52000 when it allowable exps and was deducted in the books of accounts of the assessee.So why are they deducting again?
In Manoharan sir’s book, it hasn’t been deducted again in the computation of tax.
6. In Q 5(a): ICAI : Sec 80IB is not available.
Manoharan: Sec 80IB is available.(As per India Cine Agencies vs CIT(SC) 2009)))
7. In Q7(b): ICAI:availed Sec 5(vi) deduction in s/o Residential house of60 lac.
Mahoran: availed Sec 5(vi) deduction in Residential house (7/10 X 500=Rs 350 lakh) [Shiv Narain Chaudhury vs CWT (Allahabad)1977]
CAclubindia
