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Income Tax - Highlights / Catch Notes

Home Highlights May 2017 Year 2017 This

The assessee had made investment in FDRs with banks but the same ...

Income Tax

May 3, 2017

The assessee had made investment in FDRs with banks but the same were not encashed for several reasons while the assessee made borrowals from different concerns in order to make investment with various concerns - Set off of interest expenditure with interest income allowed - AT

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  1. Addition u/s 68 - maturity proceeds of FDRs, alleging unexplained cash credits - In this regard, assessee submits a copy of the bank certificates issued by the Dena Bank...

  2. Unexplained cash deposits in Bank account - The explanation given by assessee cannot be simply rejected when he states that he encashed the traveler cheques and...

  3. Waiver of pre-deposit - tribunal directed that the Bank Guarantee may be encashed for collecting the demand of duty - order of tribunal sustained - HC

  4. Interest of bank guarantee encashed earlier - the appellant will be entitled to interest @ 12% p.m., after three months from the date of receipt of the application - HC

  5. Interest paid to ICICI and IDBI band on funds utilized to make the impugned FDRs is an allowable deduction under section 57(iii) against the interest income on such FDRs - HC

  6. Reopening of assessment - case was reopened on a ground but additions were made on different ground - it was not open to him to make the addition for unaccounted investment

  7. investments made by the banking company should be treated as a business asset of the banking company or stock-in-trade - AT

  8. Interest income earned by a credit cooperative society on the FDRs with nationalized bank would qualify for grant of exemption under section 80P(2) - AT

  9. Deletion of undisclosed investment in fixed deposits – merely for the reason that there was a mistake in making entries, a disclosed investment cannot be treated as...

  10. Interest on FDRs made out of zero coupon convertible bonds - chargeable under section 56 - AT

 

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