Input tax credit conditions remain constitutionally valid, with eligible recipient claims considered under GST circulars and retrospective filing dead...
Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
The ITAT allowed the assessee's appeal, holding that section 71(2) of the Income Tax Act permits the set-off of business losses against income from other sources, including capital gains, without prescribing a sequence for such set-off. Since no business income existed for the year, section 70, which mandates intra-source loss set-off, was inapplicable. The tribunal clarified that the assessee's method of setting off losses against income under different heads constituted legitimate tax planning within the statutory framework. Consequently, the deduction under Chapter VI-A disallowed by the Assessing Officer was directed to be granted as claimed by the assessee.
The ITAT allowed the assessee's appeal, holding that section 71(2) of the Income Tax Act permits the set-off of business losses against income from other sources, including capital gains, without prescribing a sequence for such set-off. Since no business income existed for the year, section 70, which mandates intra-source loss set-off, was inapplicable. The tribunal clarified that the assessee's method of setting off losses against income under different heads constituted legitimate tax planning within the statutory framework. Consequently, the deduction under Chapter VI-A disallowed by the Assessing Officer was directed to be granted as claimed by the assessee.
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