Business Expense not deductible against rent income in the absence of business activity

No addition for shortage in excisable goods if no discrepancy found by Excise Authorities Posted: 02 Oct 2012 07:55 PM PDT The Tribunal, on a consideration of the rival submissions arrived at the following findings:  a.  The search commenced on 29.8.1996 and was finally concluded on 30.8.1996. It is impossible for anybody to accurately take stock in a span of just one day and this itself vitiated the entire process of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Reopening on the basis of information of accommodation entries justified Posted: 02 Oct 2012 07:44 PM PDT In the case of the assessee, it is clear that a precise and definite information was received by the Assessing Officer regarding receipt of accommodation entries in respect of capital from various persons aggregating to Rs. 14.45 lakhs. He compared the information with the information available in... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Business Expense not deductible against rent income in the absence of business activity Posted: 02 Oct 2012 07:24 PM PDT The main claim in the present year is a sum of Rs. 14,50,123 which represents interest expenses on the loans used for construction of the building and which according to assessee deserves to be allowed under section 24(b) of the Income-tax Act, 1961 against the rental income. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Interest income linked with power plant set up is capital receipt not revenue receipt Posted: 02 Oct 2012 07:13 PM PDT The proviso to s. 36(1)(iii) enacts that any amount of the interest paid towards capital borrowed for acquisition of an asset or for extension of existing business regardless of its capitalization in the books or otherwise, [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Inclusion of 'closing amount of Modvat' in closing stock without modifying figures of purchases, sales & opening stock not justified Posted: 02 Oct 2012 12:25 PM PDT AO observed that the assessee has not included the excise duty in the valuation of closing stock. Under the provisions of section 145A of the Act, the assessee should include the excise duty component of purchase price of raw material while valuing closing stock of raw material, Work-in-Progress... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Lease is not a hire purchase where lessor bound to maintain the asset Posted: 02 Oct 2012 11:56 AM PDT  Air Conditioners have been leased out with option to the assessee to purchase the Air Conditioners, though it may be on nominal price, but at the same time, it is clear that the assessee, in the relevant year, corresponding to assessment year, did not exercise that option so as to complete the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]