Business expenditure deduction requires proof of genuine commission payments and commercial allowability; turnover growth alone cannot validate the cl...
Article 8 treaty coverage excluded third-party airline support services, while documented demonetisation cash receipts remained accepted business inco...
Functional comparability under TNMM requires highway contract benchmarks to reflect operation, maintenance and transfer activities, requiring fresh be...
Page of 4798
Press 'Enter' after typing page number.
481 to 500 of 95955 Results
❮
❯
❯❯
0 / 200
Expand Note
Add to Folder
No Folders have been created
+
Are you sure you want to delete "My most important" ?
The ITAT held that the grant received by the assessee company from the UP Government, intended to pay outstanding cane growers' dues, is capital in nature and not a revenue receipt. The grant aimed to protect the intrinsic value of the share capital held by the State Government prior to disinvestment, and its utilization for revenue expenses does not convert it into taxable income. The Tribunal rejected the AO's view that the grant amounted to remission or cessation of liability under section 41(1), as no waiver occurred; the assessee acted merely as a conduit for the government's directed payment. Consequently, the impugned taxation of the grant as income under section 41(1) was quashed, and the appeals were allowed, affirming that the grant is not taxable in the hands of the assessee.
The ITAT held that the grant received by the assessee company from the UP Government, intended to pay outstanding cane growers' dues, is capital in nature and not a revenue receipt. The grant aimed to protect the intrinsic value of the share capital held by the State Government prior to disinvestment, and its utilization for revenue expenses does not convert it into taxable income. The Tribunal rejected the AO's view that the grant amounted to remission or cessation of liability under section 41(1), as no waiver occurred; the assessee acted merely as a conduit for the government's directed payment. Consequently, the impugned taxation of the grant as income under section 41(1) was quashed, and the appeals were allowed, affirming that the grant is not taxable in the hands of the assessee.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4798
Join Channel
TaxTMI 
