Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
Rental income from let-out business premises cannot be increased...
Rental income valuation requires credible local comparables; family-business salary and commercially expedient unsecured-loan interest remained deductible.
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Rental income from let-out business premises cannot be increased by relying on rent from a commercial property at a different location without credible evidence that comparable local premises command higher rent; the estimated addition was deleted. Salary paid to a family member remains allowable where business services were rendered, payments were consistent, and the recipient offered the income to tax; the disallowance was deleted. Interest on unsecured business borrowings may exceed secured bank-loan rates where flexibility, short-term repayment terms, ancillary borrowing costs and commercial expediency establish that the rate is reasonable; the interest disallowance was deleted.
Rental income from let-out business premises cannot be increased by relying on rent from a commercial property at a different location without credible evidence that comparable local premises command higher rent; the estimated addition was deleted. Salary paid to a family member remains allowable where business services were rendered, payments were consistent, and the recipient offered the income to tax; the disallowance was deleted. Interest on unsecured business borrowings may exceed secured bank-loan rates where flexibility, short-term repayment terms, ancillary borrowing costs and commercial expediency establish that the rate is reasonable; the interest disallowance was deleted.
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