Co-operative society's mandatory reserve and share capital fixed deposits with banks-interest treated as business income under 80P(2)(a)(iii) deductio...
Income tax reassessment reopening after four years on investigation tip, without s.147 proviso disclosure failure, struck down as borrowed satisfactio...
Deduction under s.36(1)(viii) was allowed as the assessee's long-term financing of renewable energy projects qualified as "development of infrastructure facility" under the "eligible business" definition, and post-01.04.2000 no CBDT approval was required; consistency from later years also supported eligibility. Recharacterization of various receipts as "income from other sources" was rejected since interest on deposits and staff loans, service/consortium fees, swap gains, refunds/write-backs and related miscellaneous items were inextricably linked to the financing business or taxable as business income u/s 41(1); accordingly assessed as business income. Disallowance u/s 14A was deleted for want of AO's recorded satisfaction and absence of exempt income. Depreciation was allowed on beneficial ownership. Disallowance u/s 40(a)(ia) for short TDS deduction was held inapplicable. - ITAT
Deduction under s.36(1)(viii) was allowed as the assessee's long-term financing of renewable energy projects qualified as "development of infrastructure facility" under the "eligible business" definition, and post-01.04.2000 no CBDT approval was required; consistency from later years also supported eligibility. Recharacterization of various receipts as "income from other sources" was rejected since interest on deposits and staff loans, service/consortium fees, swap gains, refunds/write-backs and related miscellaneous items were inextricably linked to the financing business or taxable as business income u/s 41(1); accordingly assessed as business income. Disallowance u/s 14A was deleted for want of AO's recorded satisfaction and absence of exempt income. Depreciation was allowed on beneficial ownership. Disallowance u/s 40(a)(ia) for short TDS deduction was held inapplicable. - ITAT
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