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Income Tax - Highlights / Catch Notes

Home Highlights May 2015 Year 2015 This

Disallowance of diminution in value of fertilizer bonds - the ...

Income Tax

May 23, 2015

Disallowance of diminution in value of fertilizer bonds - the fertilizer bonds received by the assessee in lieu of cash subsidy also deserves to be given the same treatment as foreign exchange - claim of deduction allowed - AT

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  1. Valuation of goods - subsidy received by fertilizer companies from the Government - the subsidy cannot be considered as an additional consideration - AT

  2. Nature of loss - commercial expediency - provisions of diminution of Government of India Fertilizer Bonds [GoI Bonds] - the loss incurred due to the diminution in the...

  3. Disallowance of provision made in respect of an anticipated loss being the diminution in the value of Govt. of India Fertilizer Bonds - the methodology adopted by the...

  4. Addition on account of disallowance of claim of VAT reimbursement - VAT subsidy received by the assessee from the Government of Bihar is a capital receipt and...

  5. Diminution in value of inventory - in the case of slow moving items which did not have a ready market, it was permissible for the assessee to adopt a lower value - AT

  6. Disallowance of Depreciation by reducing Written down value of assets by subsidy received - incentive received by the assessee is not covered under the provisions of...

  7. Valuation - inclusion of subsidy in assessable value - no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans - AT

  8. Diminution of value of shares - to be treated as business loss or not - Regular method of valuation of stock to be followed - claim of loss allowed - AT

  9. In the case of intangible asset being commercial/business rights diminution in value or physical wear and tear is not an essential condition for admissibility for...

  10. Valuation - inclusion of subsidy - Under the promotion policy involved in these appeals, the subsidy does not reduce the sales tax that is required to be paid by the...

 

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