Transfer pricing comparability requires functional alignment and permits working capital adjustment, while APA margins cannot govern non-covered years...
Treaty benefit, goodwill depreciation and hedging costs: export commission disallowed, while key business deductions and depreciation claims succeeded...
Undisclosed foreign asset classification requires an unexplained source; unrebutted affidavits and corroborative evidence defeated the Black Money Act...
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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