S. 145 : Method of accounting-Survey-In the course of survey incriminating material was found indicating unaccounted sale of flats -Rejection of books of account and estimation of income at 11 percent of gross sales is held to be justified. [S.69]
S. 145 : Method of accounting-Survey-In the course of survey incriminating material was found indicating unaccounted sale of flats -Rejection of books of account and estimation of income at 11 percent of gross sales is held to be justified. [S.69]
S. 54B : Capital gains-Land used for agricultural purposes -Purchase of agricultural land prior to sale of agricultural land – Exemption is not available-Stamp duty paid is to be considered as part of cost of purchase of agricultural land. [S. 45]
S. 48 : Capital gains–Indexation-Cost of improvement-Expenditure on levelling of agricultural land for purpose of irrigation from canal, benefit of indexed cost of improvement was to be granted. [S. 45]
S. 45 : Capital gains-Joint Development Agreement (JDA)-Mere licence to builder to enter property for purpose of carrying out development- Cannot be regarded as transfer – Capital gain tax is not leviable. [S.2(47)(v), Transfer of Property Act, 1882, S. 53A]
S. 45 : Capital gains-Business income-Redemption of units of mutual fund -No borrowed capital- Only 15 transactions – Shown as investment in books of account-Assessable as capital gains and not as business income. [S. 28(i)]
S. 43B : Deductions on actual payment-Electricity duty-Disallowance cannot be made in respect of liability of State Electricity Board with regard to amount of electricity duty and surcharge collected by it as an agent of State of Kerala. [Electricity Supply Act, 1948]
S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable – Provisions are not applicable to co-operative society. [S. 40A(2)(b)]
S. 37(1) : Business expenditure-Education expenses of grandson of director who has contributed to functioning of business-Matter is remanded back for disposal afresh.
S. 36(1)(viia) : Bad debt-Provision for bad and doubtful debts- Schedule Bank-Kerala State Electricity Board is not entitled to deduction of provision created for bad and doubtful debts though such provision is created based on guidelines issued by RBI. [S.36(1)(vii), 36(2)]
S. 11 : Property held for charitablepurposes– Construction activities- Acting as an agency to generate and propagate innovative housing ideas, production and distribution of innovative building materials, etc is the principal activity – Supervisory charges- Not entitle to exemption. [S. 2(15), 11(4A)]