Revenue or capital expenditure — Expenditure incurred on the buy-back of shares is assessable as revenue expenditure and not as capital expenditure, as held by KolTrib in ACIT v Britannia Industries Ltd — In favour of: The assessee.
Payments made at different check posts by the transporters are allowable as business expenditure, the same being compensatory in nature to avoid delays in the delivery of goods and not for the infraction of law.
Club membership fees paid for the membership of the directors and executives are an allowable business expenditure
Bad debt — Merely because the assessee was not in the business of financing or moneylending, that fact alone does not lead to the conclusion that monies were not advanced in the course of or for the purpose of the assessee’s business.
Loss incurred upon the assignment of a loan to a third party was allowable as revenue deduction.
Depreciation — The assessee is entitled to depreciation on assets used in R & D.
Loss — Capital loss — In order to apply s 94(7), it is incumbent upon the AO to prove that the assessee sold the shares or units within three months after the date on which the dividend was declared.
The word “month”, for the purposes of s 94(7), means the period starting from the day subsequent to the “record date” and ending one day preceding the corresponding day in next month.
Decided on: 31 August 2010.
Payments made at different check posts by the transporters are allowable as business expenditure, the same being compensatory in nature to avoid delays in the delivery of goods and not for the infraction of law.
Club membership fees paid for the membership of the directors and executives are an allowable business expenditure
Bad debt — Merely because the assessee was not in the business of financing or moneylending, that fact alone does not lead to the conclusion that monies were not advanced in the course of or for the purpose of the assessee’s business.
Loss incurred upon the assignment of a loan to a third party was allowable as revenue deduction.
Depreciation — The assessee is entitled to depreciation on assets used in R & D.
Loss — Capital loss — In order to apply s 94(7), it is incumbent upon the AO to prove that the assessee sold the shares or units within three months after the date on which the dividend was declared.
The word “month”, for the purposes of s 94(7), means the period starting from the day subsequent to the “record date” and ending one day preceding the corresponding day in next month.
Decided on: 31 August 2010.
No comments:
Post a Comment