https://www.taxtmi.com/caselaws?id=754610 ITAT Hyderabad ruled on multiple issues concerning livestock business taxation. Regarding interest disallowance on loan from HMBS, the matter was remitted to CIT(A) for verification of banking channels and proper documentation after assessee failed to provide adequate evidence initially. The tribunal held that livestock constitutes stock-in-trade rather than capital assets, rejecting CIT(A)'s contrary finding. Consequently, gains from livestock sales must be taxed as business income, not capital gains, with no indexation benefits available. The court emphasized that livestock transactions follow normal business principles for profit computation, not capital gains provisions under section 10. en-us Wed, 28 Feb 2024 00:00:00 +0530 Tue, 25 Jun 2024 13:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754610 ITAT Hyderabad ruled on multiple issues concerning livestock business taxation. Regarding interest disallowance on loan from HMBS, the matter was remitted to CIT(A) for verification of banking channels and proper documentation after assessee failed to provide adequate evidence initially. The tribunal held that livestock constitutes stock-in-trade rather than capital assets, rejecting CIT(A)'s contrary finding. Consequently, gains from livestock sales must be taxed as business income, not capital gains, with no indexation benefits available. The court emphasized that livestock transactions follow normal business principles for profit computation, not capital gains provisions under section 10. Case-Laws Income Tax Wed, 28 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754610