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)
Identifying a Drafting Error in GST Amnesty Provisions
Provision Regarding Amnesty Scheme Section 128A was introduced into the Central Goods and Services Tax (CGST) Act by the Finance Act, 2024,...
-
In this article, for the benefit of our reader’s we have come up with detailed FAQ on procedures of issuance, requirement of Form 15CA an...
-
1. Situation I. Tax Department Summons An employee received a summons from the tax department demanding an explanation for failing to discl...
-
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...
-
In this post, I will discuss Secretarial Standards related to Proxies under SS – 2. Right to Appoint: A Member entitled to attend and ...
-
Many of us rely on home loans to purchase residential property, but are you fully aware of how tax laws impact your financial strategy? Unde...
-
Summary of the relevant updates is provided below for ease of your reference: A) Proposals relating to GST law, Compliances an...
-
Particulars Singapore Hong Kong Corporate Tax rate 17% 16.5%. Numb...
-
The circular of the Board dt. 28.06.1965 No. 17 (XL-36), provides for inspection fees and fees for certified copies of assessment and...
-
The posting had been move to another website. Please click the link below to get the access of the same. https://taxofindia.wordpress....
No comments:
Post a Comment