Surplus arising to a partner from transaction of contribution of land held by it to a firm as capital contribution shall be taxable u/s 45
Jan 24, 2010 Income Tax Case Laws
SUMMARY OF CASE LAW
When an asset is contributed by an assessee to a firm as its capital contribution, in which assessee becomes a partner, a transfer of capital asset takes place, and the amount recorded in the books of account of the firm as the value of land shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of land, and the profits or gains arising from such transfer of a capital asset by a person to a firm in which he becomes or is a partner by way of capital contribution or otherwise, shall be chargeable to tax as his income of the previous year in which such transfer takes place;
Read the rest of this entry »
Tags: books of account, capital asset, CAPITAL GAIN, dlf universal ltd, partnership firm, stock
Deductibility of premium on forward contracts in the year of entering into such contracts
Jan 21, 2010 Income Tax Case Laws
The Delhi High Court (HC) [2010-TIOL42-HC-DEL-IT] in the case of CIT v. Industrial Finance Corporation of India (Taxpayer) which held that the difference between forward rate and exchange rate prevailing on the date of entering into forward contracts is fully allowable as deduction even if the difference is amortized in the books of account over the life of the forward contracts.
Read the rest of this entry »
Tags: accounting standard, appellate authority, balance life, books of account, borrowings, chartered accountants of india, delhi hc, delhi high court, exchange rate, fluctuation, foreign currency, foreign exchange, forward contracts, forward rate, future years, industrial concerns, industrial finance corporation, institute of chartered accountants, institute of chartered accountants of india, tax purposes
Shares activity treated as investment in earlier years cannot be treated as business in subsequent years if facts are the same
Jan 16, 2010 Income Tax Case Laws
The assessee was engaged in two different activities of sale and purchase of shares. The first set of transactions involved investment in shares in which the assessee took delivery of the shares. The second set of transactions involved dealing in shares for business purposes. The assessee was accordingly an investor as well as a dealer.
Read the rest of this entry »
Tags: books of account, business activities, business income, business purposes, capital gains, case law, consistency, consistent practice, investment account, investment activity, investment transactions, portfolios, uniformity
For a debt to be classified as bad, assessee has only to write it off as irrecoverable in its accounts.
Jan 3, 2010 Income Tax Case Laws
There is no requirement that the income in respect of which bad debts is written off has to be recognized as income in earlier previous year and not in the year in which bad debt is written off.
Read the rest of this entry »
Tags: bad debt, bad debts, books of account, c b richard ellis, contentions, crores, debtor, mauritius ltd
Establishment of identity of creditor, creditworthiness of creditor and genuineness of transaction
Dec 31, 2009 Income Tax Case Laws
It would depend upon facts of each case whether all the three ingredients to discharge the onus to prove cash credit have been proved by the assessee or not; if an NRI, engaged in business of real estate development with substantial means, decided to invest in real estate in India, genuineness of same cannot be doubted unless there is any evidence to contrary.
Read the rest of this entry »
Tags: appellate tribunal, benches, books of account, case law, creditor, creditworthiness, evidences, genuineness, Income Tax, itat, NRI, onus, principle, real estate in india
The burden of proving understatement or concealment is on the revenue
Dec 29, 2009 Income Tax Case Laws
The burden of proving an understatement or concealment is on the revenue; this burden may be discharged by the revenue by establishing facts and circumstances from which a reasonable inference can be drawn that the assessee has not correctly declared or disclosed the consideration received by him and there is an understatement or concealment of the consideration in respect of the transfer.
Read the rest of this entry »
Tags: 50c, books of account, concealment, evidences, investments, jewellery, onus, transfer case, understatement
Unilateral remission/cessation of liability by assessee will amount to obtaining of benefit under section 41(1)
Dec 24, 2009 Income Tax Case Laws
SUMMARY OF CASE LAW
Where the assessee-company has not only written off the trading liability in its books of account but also offered the same as its income in the return on the ground that it has ceased to exist, the said liability written off by the assessee is liable to be added to the total income u/s 41(1) of the Income-tax Act, 1961.
Read the rest of this entry »
Tags: books of account, cession, income tax act, income tax act 1961, proceedings, provisions, Recession, remission, submissions
SEBI ask bourses to preserve records till the trial or investigation proceedings concludes
Dec 11, 2009 SEBI
Market regulator Securities and Exchange Board of India asked bourses on Wednesday to preserve original records related to an investigation till the trial is over instead of the current practice of keeping the papers only for five years. “. the respective original is to be maintained till the trial or investigation proceedings have concluded,” market regulator Sebi said in a circular to all stock exchanges.
Read the rest of this entry »
Tags: books of account, bourses, central bureau of investigation, crime branch, electronic form, exchange board, information technology act, proceedings, provisions, SEBI, securities and exchange, securities and exchange board of india, stock broker, stock brokers, stock exchanges