https://www.taxtmi.com/caselaws?id=55841 Reassessment cannot validly be initiated under section 147(b) solely on an audit objection, because an audit party's note is not "information" for that purpose and proceedings founded only on it are void ab initio. The commentary also notes that interest on loans used for underwriting preference shares is deductible on accrual basis where the agreement fixes the liability, while interest relating to equity-share funding is allowable only if contractually stipulated. Dividend foregone by the State Government and RBI is treated as a capital-oriented remission and not taxable as trading income. Guarantee fees, ex gratia staff payments and similar business outgoings are described as allowable deductions where incurred for business purposes. en-us Fri, 26 Mar 1982 00:00:00 +0530 Tue, 30 Nov 2010 13:41:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=55841 Reassessment cannot validly be initiated under section 147(b) solely on an audit objection, because an audit party's note is not "information" for that purpose and proceedings founded only on it are void ab initio. The commentary also notes that interest on loans used for underwriting preference shares is deductible on accrual basis where the agreement fixes the liability, while interest relating to equity-share funding is allowable only if contractually stipulated. Dividend foregone by the State Government and RBI is treated as a capital-oriented remission and not taxable as trading income. Guarantee fees, ex gratia staff payments and similar business outgoings are described as allowable deductions where incurred for business purposes. Case-Laws Income Tax Fri, 26 Mar 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=55841