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2011 (5) TMI 652 - AT - Income TaxAddition on certain long term capital assets – assessee took indexed cost of acquisition in case of loss & actual cost in case of gain - dis-allowance of accounting charges/consultation fees/rent expenses etc – dis-allowance of interest expenses paid in earning income exempt from tax – Held that:- Section 112 is not only a beneficial provision but is also mandatory provision and if several transactions have taken place by way of sale of shares, the assessee can avail of the benefit of indexation in a few transactions and avail of 10% tax rate in the remaining transactions. In respect of disallowance of accounting charges/service charges/Rent/ bank commission expenses in respect of all the assessees, the matter is restored back to the file of the Assessing Officer with the direction that the Assessing Officer will re-work out the disallowances, if any, keeping in view the ratio of the decision of ITAT ‘A” Bench, Ahmedabad in the case of Kisan Discretionary Family Trust for the assessment year 2003-04, after giving opportunity of being heard to both the sides. In respect of consultancy charges - The Assessing Officer will verify that whether these are paid in connection with income-tax matter in that event the Assessing Officer is directed to allow. Further in respect of interest expenses the the matter is restored back to the file of the Assessing Officer to quantify the extent of the disallowance keeping in view provisions of Section 14A(1). Appeals filed by the assessees are partly allowed for statistical purposes.
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