Landmark Cases on Business Income and Deductions
2,356 decisions, ranked by how many judgments on BharatTax rely on them.
Disallowance under Rule 8D(2)(ii) and (iii) of the Income-tax Rules can only be applied to shares held as investments and not to shares held as stock-in-trade. This is because the calculation of disallowance involves the value of investments, the income from which does not form part of the total income.
Foreign exchange fluctuation loss is an allowable business expenditure. Depreciation is an allowable deduction.
Interest on partners' capital and remuneration to partners are appropriations of profit, not expenses, and therefore not subject to Section 14A disallowance.
Where an assessee has not claimed any amount by way of service tax as a deduction, there is no question of disallowance of any tax or dues under section 43B of the Income-tax Act.
Income from developing and exploiting a structural facility on property is to be considered under the head 'business/profession', not 'income from house property'.
Accounting Standard AS-2 issued by the Institute of Chartered Accountants of India for the valuation of inventory is upheld. Inventory should be valued at purchase cost price, with commission and discounts adjusted against the cost of goods sold.
