Messages

Dear All
Even in the TVS case referred, th ematter has been sent to the file of ITO, to determine whether  the expenses paid for survey represent fees for tecnical fees or not.
This appears to be a work done by the foreing firm , not having any permanant establishment, and cannot be tken as a tecnical fees to be covered unser secton 9.

Bombay high court in case of Amitab Bacchan has recently held that re opening is such cases is void.

If you claim 100% depreciation, or charge it to revenue , it is the same as regards the taxability
As pointed out by Mr  Ashutosh, you may not get the relief at the ITO level and may have to fight your case.Your decision will also depend on the quantum of amount and the risk your company can take.

You are right .. At the grass root level , the assessment is reopened on the receipt of "audit objection " and the addition is made. Even when the CIT (appeal) gives the order in the favour of the assessee, the department files an appeal and the issue is dragged to the tribunal.
The whole process takes not less that 4 years and till then the assesse is to bear the demand and other consequences.

The only way is to file a writ, which is a costly affair for a small assessee.I  just read that the CBDT is giving incentive to the officers for collection of tax. THIS PRACTICE OF REOPENING WILL END ONLY IF THERE IS A PUNISHMENT , tillthen we have to live with it
srinivasan

Sir
If the premises is taken on rent , the expenditure incurred  , are to be taken  as revenue as per the provisions of section 30(a)(1) of the income tax Act.However if any capital item identifiable  has also been created, the depreciation on the same should be as per the block of assets to which it falls.
srinivasan

This implies that the disallowance is only for th e amount which remains outstanding as on 31.3   and not for any default during the year.......which is hard to understand,
srinivasan

Sir
The Vizag Vench judgement is yet to be tested by any high court.It cannot be taken for granted till  final decision is taken especially for transactions to be entered into in future
srinivasan

Dear Sir
We are in a country where CBI, is under Home ministry.... and nothing has been done to give it an independent status and take it out '

Recently there was a case where the person who pased the order , should not be the appellant authority. As long as CIT (Appeals ) are doing their job independent of the fact that they are part of the revenue and pass the order which is as per the provisions of the act, and as per the facts of the case , we should not have any objection.
regards
srinivasan

The provisions of section 29, clearly states that the income referred to in section 28 shall be computed in accordance with the provisions contained in section 30 to 43D,
and as such all the exepnses are covered for the purpose of section 40(a)(1a)
srinivsan

The only thing is that if he is a minor , the income is to be clubbed as per section 64.
srinivasan

No tax impact,if he is a major and it is out of your source which can be proved if need arises.u can gift it or viva int free loan

On just sale,till now there is no TDS.

Sir for the purpose of section 80 the GTI is the income of the assessee as computed , as the provisions of the Act, and it automatically is reduced by income covered under section 10. 10B etc
srinivasan

As you say that there are no assets , th eparking fees received is for the services rendered including the service of the parking attendent, marking of the parking areas , giving parking slips, having a barrier at the 4entrance etc, it shoud be taken as income from other sources and these expenses can be claimed.