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2014 (9) TMI 129 - AT - Income TaxSale of TDR rights – business income or income from other sources - Held that:- The TDRs have not been recognized as capital asset in the books of account of the assessee - the treatment given by the assessee in the books of accounts when TDRs were sold clearly show that the same were considered as business asset of the assessee - The other circumstances brought out by the AO in the order of assessment, that income on sale of TDRs was in the normal course of business and had to be considered as income from business - the assessee is not in the business of dealing in TDRs and therefore income from sale of TDRs cannot be regarded as income from business - the property was treated as business asset and on its transfer, the assessee derived TDRs - When such TDRs were sold, it cannot be said that the sale proceeds of TDRs are not income from business - the TDRs have a direct nexus with the business of the assessee and cannot be treated as any other source of income – Decided against assessee. Reimbursement of interest free refundable deposit payable under the principal lease deed – Details not furnished - Held that:- The non-resident was an architect and engaged by the assessee for the purpose of carrying out the architectural study for development of the property obtained on lease - A payment equivalent to US $ 10,000 was allowed by the AO as there was a supporting invoice from the non-resident - the assessee made three payments to the non-resident of US $ 10,000, US $ 7500 and US $ 10,000 as second, third and fourth instalments - While making remittances of these payments to the non-resident, the assessee did not deduct tax at source and in this regard filed a certificate of CA for non- deduction of tax at source - the fact that the payment was second, third and fourth instalment has been duly recorded - the payment was for architectural fee and had to be allowed as a deduction to the assessee - the assessee be allowed a further deduction as expenditure in the matter of determination of income from such lease of the property – Decided in favour of assessee.
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