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2016 (2) TMI 488 - AT - Income TaxAllowance of business expenditure - Commencement of business - whether there is a distinction between setting up of the business and commercialization of the operation, which generates actual revenue to the business? - Held that:- In this present case, the assessee is in the business of construction and development of technology park. In this line of business, the process commences from the date of negotiation for acquiring land, actual purchase of the land and then actual development of such land. The concept of commencement will change according to the nature and facts of the particular industry. It may vary depending upon the business model and business cycle of the industry. In the present case under consideration, the business said to have set up, when it is ready or established to commence its operation. The assessee's business had commenced since incorporation and the assessee is eligible to claim the expenditure incurred for running of the business activities. Hence, the assessee is eligible for the business expenditure of ₹ 29,54,923/-. - Decided in favour of assessee Treatment of interest income - whether income from business or from other sources - Held that:- As observed above, the assessee had set up the business prior to this AY 2009-10, assessee is eligible to treat the interest income earned during this year earned out of the excess funds available in the business. It was earned by the assessee while carrying on the business activities.Similar view was upheld in the case of Dakshin Shelters Pvt. Ltd. [2012 (5) TMI 649 - ITAT HYDERABAD] wherein it was allowed to claim expenses as incurred which was debited to profit & loss a/c against interest income. Similar view also expressed by this coordinate bench in the case of ITO Vs. Trident Shelters Pvt. Ltd. [2014 (1) TMI 1224 - ITAT HYDERABAD] - Decided in favour of assessee
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