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

Non Charging of Interest

ByCA Gopal Nathani

Sep 6, 2020

In the case of Dy. CIT v. Ganesh Chhababhai Valabhai Patel Family Trust (108TAX78) as part of the business of financing the assessee did not charge interest in case of two parties, as it was felt that even pricipal amount was in doubt. The ITAT held that the business carried on by the unit was on very large scale. During the course of such business non- charging of interest because of the special circumstances, especially in case where the interest had not been charged in earlier years and the claim had been accepted by the Assessing Officer, should not disentitle the appellant from the allowance of loss in the business.