Mumbai ITAT accepts
Revenue’s claim that the date of conversion of capital asset (plot of land)
into stock-in-trade as envisaged u/s 45(2) shall be reckoned from the date when
assessee-builder filed an application for building plan sanction before the
Municipal Corporation (i.e. in 1994), and not when IOD was actually issued
(i.e. in 1997); Assessee had decided to use portion of his land holdings for
developing a housing project, rules that “what is relevant to determine the
date of conversion is the intention of the assessee to commercially exploit the
property which is on 02-02-1994.”; On year of taxability, ITAT upholds
assessee’s stand that the capital gains shall be taxable in the year in which
the project was completed and flats were ultimately sold, rejects Revenue’s
stand that the LTCG shall be chargeable to tax proportionately on the basis of
advance received from customers; Separately, ITAT allows assessee’s claim u/s.
80-IB(10) despite no OC issued by Municipal Corporation; Lastly, ITAT rejects
assessee’s stand that interest earned on FDR was a business receipt as it had
parked surplus funds generated from business in banks in order to earn interest
income and reduce construction expenses, upholds AO’s action of assessing it as
‘income from other sources’.:ITAT
Subscribe to:
Post Comments (Atom)
Taxation of Intangible assets acquired through business restructuring.
1. Background 1.1 When a company aims to acquire another company's business through amalgamation or demerger, assets or ...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
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...
-
Introduction It's important for taxpayers to have a clear understanding of the available allowances and deductions, as they can grea...
-
· Mumbai ITAT in the case of Mukesh Harilal Mehta held that Exemption U/S 54 cannot be denied merely due to mistake by the developer.
-
Earlier this year, the Mauritius Government approved the amendment to the India – Mauritius tax treaty, aligning it with the proposal of th...
-
Slump sale is transfer of one or more business undertakings for a lump sum consideration, without assigning individual values to the each...
-
This Tax Alert summarizes a recent instruction issued by the SEZ Division, Department of Commerce, clarifying various concerns relating t...
-
This Tax Alert summarizes a recent judgement of the Delhi High Court (HC) [1] dealing with the issue of denial of input tax credit (ITC) ...
-
An eminent concern within the GST framework pertains to the entitlement of Input Tax Credit (ITC) concerning expenditures associated with In...
No comments:
Post a Comment