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Income Tax - Highlights / Catch Notes

Home Highlights October 2015 Year 2015 This

Disallownace of layout formation expenses - even though the ...

Income Tax

October 14, 2015

Disallownace of layout formation expenses - even though the expenditure incurred after the execution of the deed by the assessee, there existed a commitment in relation to such sale - claim of expenses allowed - AT

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  1. Feng Sui Consultancy charges - nature of expenses - charges related to the layout and location of the various items of its assets - allowed as revenue expenditure - AT

  2. Expenses incurred under different heads during the year under consideration have increased even though the turnover has substantially reduced - disallowance confirmed - AT

  3. Valuation - expenditure incurred for deployment of own machineries and equipments in execution of the work and establishment expenditure are allowed as deduction - HC

  4. Advertisement and marketing expenses – Trading expenses or not - very year, the assessee has been incurring substantial expenditure on advertisements - It is an...

  5. The expenses incurred are in the nature of employee benefits, though paid under secondment agreement, in respect of persons working for the assessee - Expenses are...

  6. Expenditure incurred in connection with transfer of the capital asset - As pertinent to note that lease deed was executed in the year 1996 in favour of the lessee and...

  7. Disallowance of pre-operating expense for a “Mawa Project” - revenue v/s capital expenditure - expenditure incurred for expansion of the dairy business of the assessee -...

  8. Software expenses - revenue or capital expenditure - real intent and purpose - expenditure incurred by the assessee on software is allowable as revenue expenditure. - AT

  9. Claim of expenses disallowed u/s 37(1) - expenditure/loss incurred on abandoned project – for the first two years the expenditure is shown as “work-in-progress” - claim...

  10. Department has no discretion to prescribe what expenditure the assessee should incur and in what circumstances he should incur the expenses - HC

 

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