Capital Gain Deductibility: proportionate IPO and PMS expenses held allowable against capital gains where netting and nexus to transfer are establishe...
Admissibility of Documentary Evidence: appellate authority may admit self explanatory documents on first production and uphold deletion of unexplained...
Dominant issue: classification of interest receipts as business income - applying the definition of "business" and principles of consistency, the tribunal found the taxpayer systematically raised large unsecured borrowings, intermediated loans through brokers, operated with profit motive and attendant risks, thereby satisfying all ingredients of business activity; interest was hence held to be income from business (appeal dismissed on this point). Subsidiary issues: disallowance under section 40(a)(ia) - because interest was business expenditure and TDS under section 194A was not deducted, the deduction was disallowed (ground dismissed); compliance with section 44AB - business receipts exceeded statutory threshold and an audit was required (ground dismissed). - ITAT
Dominant issue: classification of interest receipts as business income - applying the definition of "business" and principles of consistency, the tribunal found the taxpayer systematically raised large unsecured borrowings, intermediated loans through brokers, operated with profit motive and attendant risks, thereby satisfying all ingredients of business activity; interest was hence held to be income from business (appeal dismissed on this point). Subsidiary issues: disallowance under section 40(a)(ia) - because interest was business expenditure and TDS under section 194A was not deducted, the deduction was disallowed (ground dismissed); compliance with section 44AB - business receipts exceeded statutory threshold and an audit was required (ground dismissed). - ITAT
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