Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
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Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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The assessee, engaged in the business of shares and securities, claimed administration expenses, including Portfolio Management Service (PMS) expenses, against capital gains. The Assessing Officer (AO) disallowed these expenses as excessive and not genuine. The key points are: The Income Tax Appellate Tribunal (ITAT) allowed the PMS expenses, considering the nature of the assessee's business and relying on precedents. However, general administrative expenses like salaries, depreciation, etc., were disallowed under the head 'Capital Gains' as per Section 48 of the Income Tax Act. These expenses can only be claimed against business income or adjusted u/s 71 if there is no business income. Regarding the treatment of share transactions as business or investment, the ITAT upheld the CIT(A)'s decision based on CBDT circulars, allowing the assessee to consistently follow the chosen method. The ITAT rejected the assessee's claim of bogus loss on the purchase and sale of shares, finding the explanations for the substantial price difference unconvincing and lacking prudence.
The assessee, engaged in the business of shares and securities, claimed administration expenses, including Portfolio Management Service (PMS) expenses, against capital gains. The Assessing Officer (AO) disallowed these expenses as excessive and not genuine. The key points are: The Income Tax Appellate Tribunal (ITAT) allowed the PMS expenses, considering the nature of the assessee's business and relying on precedents. However, general administrative expenses like salaries, depreciation, etc., were disallowed under the head 'Capital Gains' as per Section 48 of the Income Tax Act. These expenses can only be claimed against business income or adjusted u/s 71 if there is no business income. Regarding the treatment of share transactions as business or investment, the ITAT upheld the CIT(A)'s decision based on CBDT circulars, allowing the assessee to consistently follow the chosen method. The ITAT rejected the assessee's claim of bogus loss on the purchase and sale of shares, finding the explanations for the substantial price difference unconvincing and lacking prudence.
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