A pvt ltd company sold a stake of 15% to private equity for 300 crores. The company invested this money for time being in mutual funds and earned dividends of Rs. 25 crores. As per Rule 8D expenditure was not disallowed and the AO disallowed some amount on the basis of Average investments * 0.5% and the assessment order was passed. Is the income received by investment of share capital is revenue in nature?
Menu
Income - Capital or revenue in nature
Replies (1)
If the company can prove amount invested in mutual funds in amount raised through private equity then such amount is capital receipt and there will be no disallowance
Recent Topics :
- TDS applicability of foreign remittance to Oracle
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
- FAST DS 2026 MAIL QUERY
- Does Anyone need CA Foundation books of May2026 at
- Last day for ITR-U for AY 2023-2024 (FY 2022-2023)
Related Topics :
CAclubindia
