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

Waiver of Interest

ByCA Gopal Nathani

Sep 2, 2020

In the case of CIT v. Punjab Agra Industries Corporation Ltd. (119TAX860) the assessee promoted a sister concern in a joint venture with a private Sector Company and advanced loans besides investing in shares. The sister concern went sick. In forming a revival plan the assessee waived off the interest on loans. The P & H High Court held that interest waived is to be allowed as legitimate business expenditure as such expenditure is made to safeguard its share capital and loan.

In the author’s opinion if such waiver is exercised in the beginning of the year it may be possible to avoid booking of income itself.