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Post Office (Monthly Income Account) Amendment Rules, 2011 - Amendment in Rule 9A (Click for detail)
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Transaction charges paid to BSE are taxable: HC (Click for detail)
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IT:Section 35(1)(ii) of the Income-tax Act, 1961 - Scientific research expenditure - Approved scientific research associations/institutions - Institute of Seismological Research (ISR), Gandhinagar (Click for detail)
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Government ensuring corporates do not delay tax payments to meet working capital needs (Click for detail)
II. Recent Updates:
1. ASST COMMISSIONER OF INCOME TAX Vs. M/S BHARAT OMAN REFINERIES LTD., ITA NO. 530/IND/2010, ASSESSMENT YEAR: 2007-08, DATED: 14TH SEPTEMBER 2011, ITAT – INDORE
Whether the receipts and payments on account of tender form and recovery of house accommodation and furniture & fixture provided with house accommodation are liable to tax when the business has not been fully set up.
Receipts on account of tender form and recovery of house accommodation and furniture & fixture provided with house accommodation are of capital nature.
(Please click here for judgment)
2. M/S MAA VAISHNO DEVI GINNING PRESSING UDHYOG DHAMNOD VS. DEPUTY COMMISSIONER OF INCOME TAX, ITA NO. 538/IND/2010, ASSESSMENT YEAR: 2007-08, DATED: 25TH SEPTEMBER 2011, ITAT – INDORE
Whether receipt of ‘excess cash’ over and above the agreed business consideration is a receipt “derived from” Industrial Undertaking and hence available for deduction of 80IB - Whether the receipt of interest income and income from other sources can be said to be a receipt derived from Industrial Undertaking.
If the language used in Section 80-IB is kept in juxtaposition with the facts of the present appeal and the source of income then it can be said that so far as recovery of excess cash is concerned, it was explained by the assessee that this cash was generated out of industrial undertaking of the assessee. So far as interest income is concerned, it was also not explained as to be generated from industrial undertaking. Even otherwise, interest income cannot be claimed to be from industrial undertaking. So far as income from weighbridge is concerned, the claim of the assessee is that the weighbridge is part and partial of such industrial undertaking. We are not agreeing with this submission of the assessee because the assessee has shown separate receipts from weighing business and the same cannot be part of industrial undertaking; if for argument sake, the plea of the assessee is considered to be correct then there was no necessity to charge from weighment if it is for the business of the assessee.
However, the assessee has charged separately from weighment (from weighbridge), therefore, it cannot be treated to be income generated from ginning business of the assessee because the income should be “derived from” the ginning business of assessee/industrial undertaking. Even otherwise, it can be said that the income which has been “derived from” the business of ginning and pressing of cotton can only be considered for deduction u/s 80- IB of the Act and the income which has been either acquired out of income from undisclosed sources are from different business cannot be allowed to be claimed as deduction u/s 80-IB of the Act.
(Please click here for judgment)
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