Daily Tax Update - July 17, 2013 Income Tax: -------------- >Bad debts: It is difficult to accept that on the mere score of reference to the BIFR - the recovery of interest or accruing of interest on the debtor company had become too difficult and bad to be realized - HC >Penalty u/s 271B: Delay in filing an audit report u/s 44AB - The delay of 29 days in filing of the tax audit report under section 44AB merited to be condoned - no penalty - HC >Accrued Income: Whether a sum which represented retention money for fulfillment of the contract by the assessee should be treated as accrued income – Held No - HC >Deduction u/s 80IA(4)(iii): Towers in the Industrial Park rented out for software concern - deduction allowed - HC >Application of Section 70 and 74 pertaining to set off of losses: Exemption u/s 50EC - priority - For taking benefit under Section 54E, it is not necessary that one should first apply Section 70(3) - HC >Income u/s 41(1): Bank waived the interest portion - Returns filed for A.Y. in which deduction claimed was held non-est - Unless the amount had been allowed as a deduction in the earlier years, the question of invoking Section 41(1) does not arise - HC >Computation of capital gain in case of property received under gift under Section 48, 49: CII to be taken from the date of transfer while cost of acquisition would be the cost for which the previous owner of the property acquired it - HC >Penalty u/s 271(1)(c): Adhoc disallowance of 50% out of miscellaneous expenses was made by the A.O. on estimated basis - said estimate was revised by the CIT(A) to 10% - No penalty - Tri >Deduction u/s 10A: Allocation of expenses on the basis of the turnover made by the CIT(A) is reasonable and has to be upheld. - Tri >Re opening of assessment second time: It is only to circumvent the illegality committed by the AO in the fist assessment proceedings - proceedings dropped - Tri Service Tax: -------------- >Constitutional validity of levy of service tax on sale of food and drinks: Legislative competency of Parliament - only state govt. are empowered to levy tax - levy of service tax is not valid - HC Source: dailytaxupdates.blogspot.in/2013/07/dailytaxupdate17072013.html
Posted on: Wed, 17 Jul 2013 09:25:04 +0000
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