Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 362 - HC - Income TaxDeprecation on Iraqi assets - difference on the translation of the overseas account in the Head Office account at the end of the year on exchange rate prevalent on the last day of the accounting year - Held that:- The amount of this difference was notional debit/credit and did not represent any loss or income for the purpose of computing the taxable income under the Income-Tax Act. The entries on this account were made only for balancing the books. Therefore, this exercise was merely done on account of incorporating the trial balance appearing in the Iraqi branch in the Head Officer books in Indian currency. Since no actual gain accrued to the assessee, there was no question of taxing this amount. We, accordingly, confirm the order of the ld. CIT(A) Disallowance of interest on borrowing - Held that:- Addition on account of interest upto the date of search to be deleted on the ground that no interest bearing funds were utilised for making any interest free loans/advances to various parties and hence, no interest should be disallowed in the year in question. See Commissioner of Income Tax Vs. M/S Jai Prakash Industries Pvt. Ltd.[2017 (3) TMI 1160 - ALLAHABAD HIGH COURT] Share issue expenses debited in P & L account to be covered under Section 35D
|