Deemed business income: recoveries, cessation of liabilities, asset sale gains and reserve withdrawals become taxable when received. Certain receipts and recoveries are deemed profits and gains of business or profession and charged to tax when received, including remission or cessation of trading liabilities, recoveries of previously deducted losses or expenditures, gains on disposal of tangible assets where proceeds exceed written down value, excess on sale of research capital assets, recoveries of bad debts previously allowed as deductions, and withdrawals from special reserves; conditions require prior allowance or deduction, business use and depreciation where relevant, and taxability extends to successors and to cases where the business has ceased.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Deemed business income: recoveries, cessation of liabilities, asset sale gains and reserve withdrawals become taxable when received.
Certain receipts and recoveries are deemed profits and gains of business or profession and charged to tax when received, including remission or cessation of trading liabilities, recoveries of previously deducted losses or expenditures, gains on disposal of tangible assets where proceeds exceed written down value, excess on sale of research capital assets, recoveries of bad debts previously allowed as deductions, and withdrawals from special reserves; conditions require prior allowance or deduction, business use and depreciation where relevant, and taxability extends to successors and to cases where the business has ceased.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
