Receipt of immovable property requires actual possession or enjoyment; redevelopment allotments exchanged for tenancy rights fall outside deemed incom...
Section 80P deduction covers Souharda credit societies, including qualifying surplus-deposit interest, subject to member KYC verification for cash dep...
Transfer-pricing benchmarking and capital-receipt principles sustained taxpayer relief, while unsupported property-advance write-offs remained disallo...
The ITAT held that the Central Board of Direct Taxes (CBDT) circulars are binding on the Income Tax Authorities. The Board for Industrial and Financial Reconstruction (BIFR) had recommended reliefs and concessions, including the set-off of carried forward business losses against business income, which were considered by the CBDT. Since the BIFR's recommendations were made after considering the views of the Income Tax Department, the assessee was entitled to the benefit of setting off brought forward business losses against business income as per the CBDT circular. The Tribunal relied on the Madras High Court's decision in CIT vs. Lakshmi Machine Works Ltd., which held that the provisions of the Sick Industrial Companies Act (SICA) would override the Income Tax Act's provisions. Regarding the disallowance u/s 14A, the interest expense disallowance was deleted as substantial interest-free funds were available, but the administrative expense disallowance was upheld due to lack of details.
The ITAT held that the Central Board of Direct Taxes (CBDT) circulars are binding on the Income Tax Authorities. The Board for Industrial and Financial Reconstruction (BIFR) had recommended reliefs and concessions, including the set-off of carried forward business losses against business income, which were considered by the CBDT. Since the BIFR's recommendations were made after considering the views of the Income Tax Department, the assessee was entitled to the benefit of setting off brought forward business losses against business income as per the CBDT circular. The Tribunal relied on the Madras High Court's decision in CIT vs. Lakshmi Machine Works Ltd., which held that the provisions of the Sick Industrial Companies Act (SICA) would override the Income Tax Act's provisions. Regarding the disallowance u/s 14A, the interest expense disallowance was deleted as substantial interest-free funds were available, but the administrative expense disallowance was upheld due to lack of details.
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