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Income Tax - Highlights / Catch Notes

Home Highlights March 2014 Year 2014 This

The assessee was justified in adjusting the interest earned from ...

Income Tax

March 3, 2014

The assessee was justified in adjusting the interest earned from the interest payments on term loan and the balance of interest paid was capitalized in the books - AT

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  1. When there is no short fall in payment of duty after adjusting excess payment on other products, interest liability will not arise. - AT

  2. Demand of differential duty - Revenue adjusted rebate (refund) from Unit II towards interest due from Unit I - the rebate cannot be adjusted towards the interest due of...

  3. Exemption from payment of income tax on interest earned - fixed deposits kept with certain banks which were corporate members of the assessee club - principle of...

  4. Deduction u/s 80I - interest income on short term bank deposits and tank hire charges - income earned or derived from manufacturing activity - HC

  5. Levy of tax and interest - incentives to mega projects - assessee instead of depositing tax adjusted the same with refund entitlement - no interest liability - HC

  6. The assessee has collected the funds from the public/depositors, who have deposited the money to earn interest - This amount is capital which will be utilized to earn income - HC

  7. Income from other sources - Deduction of interest expenditure - direction of the CIT – A in restricting the deduction to the extent of income earned of term deposit -...

  8. Interest on refund - AO was not justified in withdrawing the interest under section 244A(1) because the seized cash was adjusted against the existing liability and...

  9. Demand of interest - assessee sought adjustment of refunds due to the petitioner against the outstanding demands u/s 245 - Revenue directed to adjust the refund with the...

  10. Nature of Interest income - first ground of appeal of the assessee for treating expenses to the amount as revenue expenditure is dismissed. However, the alternative...

 

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