Income Tax Judgements
Business expenses – S. 37(1) – Capital or Revenue expenses
Shefali Bajpai 07 June 2008 at 22:59
Expenditure on replacement of manual cone winders by auto cone winders in textile mill – No cost advantage on such replacement and no increase in installed capacity – Expenditure incurred was revenue notwithstanding large amount was spent - A.Y. 2002
Deductions – Sec. 80HHE – Export of computer software
Shefali Bajpai 07 June 2008 at 22:59
Assessee carrying on software export as well as domestic business – Assessee maintained independent and separate books of account for export and domestic sale – Deduction needs to be computed considering only the export business –A.Y. 1993-94
Valuation of stock
Shefali Bajpai 07 June 2008 at 22:59
To give effect to section 145A, if there is a change in the closing stock corresponding change in opening stock also to be made
Block Assessment
Shefali Bajpai 07 June 2008 at 22:59
Undisclosed Income vis-a-vis asset disclosed in the Regular Returns
Investment of amount in fdr only to secure bank guarantee to
Shefali Bajpai 07 June 2008 at 22:59
Interest accrued on deposit is business income
Depreciation can be claimed on leased vehicles
Shefali Bajpai 07 June 2008 at 22:59
Exemption under section 54f
Shefali Bajpai 07 June 2008 at 22:59
Sale of residential house and investment in new house – Even though registration is not complete assessee is entitled to exemption u/s. 54F
Reassessment based on change of opinion
Shefali Bajpai 07 June 2008 at 22:59
NOT VALID
Penalty – S. 271(1)(c) – Partially set aside proceedings
Shefali Bajpai 07 June 2008 at 22:59
Original assessment proceedings are relevant to ascertain the recording of satisfaction – No reason in original assessment proceedings for levy of penalty – Penalty imposed liable to be cancelled – A.Ys. 1996-97 to 2001-02
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