Pune ITAT denies deduction
u/s. 80P(2)(a)(i) to assessee (a Co-operative society engaged in banking
business) in respect of ‘gross’ commission receipts (arising on account of
collecting electricity charges for & on behalf of MSEB) for AY 2012-13;
ITAT holds that since the amount of gross receipt from MSEB commission is less
than the amount of expenses incurred for earning such commission, there can be
no distinct deduction u/s. 80P because of the negative income earned by
assessee from this activity; Referring to Sec. 80AB, ITAT rules that where
deduction is required to be made u/s. 80P (which is covered under
Chapter-VI-A), it is ‘the amount of income of that nature as computed in
accordance with the provisions of the Act’, which shall be considered as
eligible for deduction; Thus, ITAT holds that the eligible amount for deduction
can be the `income’ and not the `gross receipts’ from the specified source;
Relies on SC ruling in Motilal Pesticides (I) (P) Ltd and Bombay HC ruling in
Asian Cable Corporation Ltd. rendered in context of Sec. 80HH / Sec. 80-O
deductions.:
Subscribe to:
Post Comments (Atom)
Can GST Under RCM Not Charged and Paid from FY 2017-18 to October 2024 be Settled in FY 2024-25?
In a recent and significant update to GST regulations, registered persons in India can now clear unpaid Reverse Charge Mechanism (RCM) liab...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
When India introduced the Goods and Services Tax (GST), it created a big change in the way companies handle their taxes. Earlier, business...
-
In this post, I will discuss Secretarial Standards related to Proxies under SS – 2. Right to Appoint: A Member entitled to attend and ...
-
What is a Digital Signature? Answer: A digital signature authenticates electronic documents in a similar manner a handwritten signatur...
-
Companies often give gifts to their employees to boost morale, celebrate achievements, and promote a positive work environment. Such gifts ...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
Section 150 of the Finance (No. 2) Act, 2024, specifies that taxpayers will not receive refunds for taxes paid or input tax credits (ITC) re...
-
Overview The Supreme Court of India recently ruled on the applicability of the Most Favoured Nation (MFN) clause in tax treaties involvin...
-
This Tax Alert summarizes the recent Delhi High Court (HC) ruling disposing Writ Petitions in a batch matter on valuation of import of serv...
No comments:
Post a Comment