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Income Tax - Highlights / Catch Notes

Home Highlights July 2015 Year 2015 This

Chargeability of interest income - interest received in the ...

Income Tax

July 29, 2015

Chargeability of interest income - interest received in the period prior to commencement of business was in the nature of capital receipt and hence was required to be set off against the pre-operative expenses / project development expenditure - AT

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  1. Prior period expenditure - when prior period income is taxed prior period expenditure cannot be disallowed - AT

  2. Chargeability of interest from the legal representative of the deceased assessee - the interest liability cannot be fastened on a legal representative - HC

  3. Entitlement to set off interest finance and professional and other charges from the interest income for the next assessment year - prior period expenditure - Deduction allowed - HC

  4. Addition on account of prior period expenditure - deducting prior period income From prior period expenditure is against well settled principles of law. - AT

  5. Cenvat Credit in respect of inputs/input services received by an output service provider during period prior his obtaining service tax registration is admissible - AT

  6. Income computed under Section 115J for the period prior to enforcement of Section 115JA and Section 115JB would not attract interest u/s 234B and 234C - HC

  7. Interest on retrospective levy of duty as per Finance Act, 2011 is not chargeable for the period prior to date of enactment of Finance Act, 2011 i.e. 8.4.2011 - AT

  8. Disallowance of interest being prior period - Since assessee follows mercantile system of accounting and accounts are audited, claim disallowed - AT

  9. Retrospective effect of section 234D of the Income Tax Act – Interest on excess refund - period prior to 1.6.2003 - can not be demanded - order of HC sustained - SC

  10. Prior period expense - Interest liability - Whether liability of earlier years has been crystallized in this year – Deduction allowed - AT

 

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