Chapter: Basic Concepts
#CAPassion #DTCL #M17-001
CIT v. Saurashtra Cement Ltd. (2010) - SC
Issue: Whether liquidated damages received by a Co. from supplier on failure to supply machinery within time - Capital Receipt or Revenue Receipt ?
Decision: Capital Receipt, reason being damages were directly linked with procurement of capital asset
You may refer your friends to join this series of case laws, share this link: https://goo.gl/forms/7W3lkWVmMz7reCPg1
#CAPassion #DTCL #M17-002
CIT v. M. Venkateswara Rao (2015 – T & AP HC)
Issue: Can capital contributions of partners be taxed as cash credit in hands of firm, where partners failed to explain the satisfactory source of receipt in their individual hands.
Facts: 6 out of 10 partners of firm failed to explain the source of income in their hands for contribution to capital of firm
Decision: View taken by AO was not tenable. Where the firm explains that the partners have contributed capital, section 68 cannot be invoked. At the most, AO can make an enquiry against individual partners, but not the firm.
Subscribe for more: https://goo.gl/forms/7W3lkWVmMz7reCPg1
The content provided on this website including are the Intellectual Property of the owner of this site and provided for the reference of personal and non-commercial use.
Copying, modifying, altering, publishing, broadcasting, distribution, sale, adopting, linking or transfer of content available on the Website, whether in whole or in part, is strictly prohibited without specific written permission from the owner. The owner shall take legal action against individuals and entities found violating the IPR (Intellectual Property Rights).