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2014 (4) TMI 626 - AT - Income TaxNature of loss Speculation Loss or not Forward exchange contracts Held that:- The decision in CIT vs. Badridas Gauridu (P) Ltd vs. CIT [2003 (1) TMI 61 - BOMBAY High Court] followed In order to hedge against losses, the assessee had booked foreign exchange in the forward market with the bank - the matter is remitted back to the AO for fresh consideration while following the above mentioned judgement Decided in favour of Assessee. Deletion on account of diversion of interest bearing funds Interest free loans provided to subsidy companies Held that:- As decided in assessees own case and in the decision in S. A. Builders Ltd. Vs Commissioner of Income-tax (Appeals) [2006 (12) TMI 82 - SUPREME COURT] followed - CIT (A) has deleted the addition after giving a finding that interest free advances to subsidiary companies have been given on commercial expediency and no disallowance could therefore be made - the order of the CIT (A) is fair and reasonable and it does not call for any interference Decided against Revenue. Liability of advertisement expenses as FBT u/s 115WD of the Act Held that:- Assessee contended that there is couple of issues raised in the ground and the first issue relates to taxability of development expenditure as FB and the second one being the bus hire charges incurred for the purpose of transporting the employees to the premises of the assessee thus,the matter is remitted back to the AO to examine the applicability of the said CBDT Circular and for fresh adjudication Decided in favour of Assessee. Inclusion of bus hire expenses under FBT Held that:- The expenses incurred by the company on the employees for transporting them between residence and the premises of the company do not attract FBT thus, the matter is remitted back to the AO for examination of the facts of the transportation and the places covered by the bus employed Decided in favour of Assesseee.
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