Hi Friends..
Can anybody tell me the exact meaning of "LOOM HOURS" with exact link on the wikipedia, if any or any other suitable link where I can read it thoroughly???? Or else, please explain whatever you know about it!!!!
Best Regards
NEHA
11 Replies
Sanat kumar
(Chartered Accountant)
(265 Points)
Replied 05 August 2011
Hi Neha
Loom is a textile machine for weaving yarn or thread into a textile.
Loom Hours means Right to use that machine for a particular time. For eg: If a person (X) installed a loom in his factory and his factory time is 09 am to 05 pm. X made a Contract with Y to use the loom after 5 pm to 05 am. That is called loom hour. Here X is transferring Right to use the loom for a certain time period to Y for some consideration.
It will be covered under capital gain tax. Here cost of acquisition will be Nil.
Shah Tarun
(Student)
(800 Points)
Replied 05 August 2011
bn sneha
(Student-IPCC)
(44 Points)
Replied 24 April 2012
Amount of purcahse price will be cost of acquisition here.
It's not nill
Anil Verma
(Auditor)
(190 Points)
Replied 03 May 2012
Sanat is right.
further you can refer the below case also:
Commissioner of Income-tax
v.
Maheshwari Devi Jute Mills Ltd.
K. SUBBA RAO, J.C. SHAH AND S.M. SIKRI, JJ.
CIVIL APPEAL NOS. 66 AND 67 OF 1964
law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/%5B1965%5D057ITR0036(SC).htm
Ruchit Khimawat
(Student)
(47 Points)
Replied 23 November 2012
but is it allowed to use loom during night hours i.e., after 5 pm to 5 am as specified by sanat kumar?
shambhavi
(student)
(22 Points)
Replied 17 August 2013
Cost of acquisition is nil if it is self generared and it is purchase price if acquired.
Kishan Kashyap
(Student)
(79 Points)
Replied 04 December 2018
As per section 55(2) of income tax 1961
Loom hours is covered under self acquired intangible assets so it's cost of acquisition will be nil
Santhini shanmugam
(2 Points)
Replied 18 December 2022
Loom is the acquired Asset. If we sell the Loom it has cost of acquisition. But loom hour is treated as self generated asset , when right to use only is transferred for a price, then there will be sale price but no cost of acquisition. (It is very Clear from the above example given by sanath sir)
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