1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Capital or revenue- Contribution for Building Construction

ByCA Gopal Nathani

Sep 2, 2020

In CIT v. Rajasthan Spg. & Wvg. Mills Ltd. (2004) 137TAX249 the assessee running a textile mill set up an institutional building to provide training in textile technology and handed over such building to the state government which allotted land for this purpose free of cost. The assessee claimed the building construction expenditure as revenue in each of the year on construction. The revenue alleged that the same is capital in nature. The Rajasthan High Court held that the laying out of the expenditure for bringing into existence a building to be owned by the state and to be run by the State for the benefit of the industry was clearly related to the running of the business of the assessee mire efficiently and smoothly.