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Bombay High Court Rules Share Issue Expenses to Dilute Foreign Equity as Capital Expenditure Under Income Tax Act, 1961. Interest on Share Application Money Cannot Be Adjusted Against Such Capital Expenditure.

The case involves an Income Tax Reference under Section 256(1) of the Income Tax Act, 1961, by the Income Tax Appellate Tribunal (Tribunal) at the ins...

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High Court of Karnataka Hears Revenue's Appeals Against ITAT Decision Favoring Assessee on Deduction of Distributable Surplus Payment to Brand Owner. Court Examines Whether Payment is Allowable Under Section 37 of Income Tax Act, 1961 or Constitutes Application of Income or Diversion by Overriding Title.

The present set of five tax appeals arises under Section 260-A of the Income Tax Act, 1961, filed by the Revenue against the common order of the Incom...

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High Court of Gujarat Dismisses Revenue's Appeal in Advertisement Expenses Classification Case. ITAT's finding that advertisement expenses are revenue expenses upheld as per Supreme Court precedent.

The present appeal was filed by the Revenue (DY CIT - C C - 1 BARODA) against the respondent-assessee (RINKI PETROCHEMICALS & IND LTD) challenging the...

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Bombay High Court Dismisses Assessee's Appeal in Income Tax Case Regarding Trust Status. Tribunal's Finding that Private Specific Trust Constituted Association of Persons Upheld, Resulting in Disallowance of Interest Paid to Beneficiaries under Section 40(ba) of the Income Tax Act, 1961.

The appeal arose from an assessment order under the Income Tax Act, 1961 for the assessment year 2001-2002 concerning the status of a Private Specific...

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Bombay High Court Dismisses Revenue's Challenge to Settlement Commission Order in Income Tax Case. ITSC's order under Section 245D(4) of Income Tax Act, 1961 upheld as valid and not perverse.

The Commissioner of Income Tax, Central – II, Mumbai, filed a writ petition challenging an order dated 31st July 2013 passed by the Income Tax Settl...

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Bombay High Court Quashes Reopening Notice Under Section 148 of Income Tax Act for Lack of Fresh Material. Reimbursement of Expenses Disclosed in Return and Application Under Section 195(2) Sought, No Failure to Disclose Material Facts.

The petitioner, Monitor India Pvt. Ltd., a subsidiary of a Dutch company, challenged a notice dated 22 March 2011 issued under Section 148 of the Inco...

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Bombay High Court Dismisses Assessee's Claim for Depreciation on Share Issue Expenses Capitalised to Plant and Machinery. Expenditure on Raising Share Capital Not Part of Actual Cost Under Section 32 of Income Tax Act, 1961, and Falls Under Section 35D as Preliminary Expenses.

The case involves an Income Tax Reference under Section 256(1) of the Income Tax Act, 1961, by the Income Tax Appellate Tribunal for the assessment ye...

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Bombay High Court Allows Assessee's Appeal on Proportional Increase of Advertisement Limit and Deductibility of Statutory Fund Transfer. Holds that Section 37(3A) limit must be proportionately increased for extended previous year and transfer to statutory storage fund is deductible under Section 37(1).

This judgment by the Bombay High Court addresses four questions of law referred by the Income Tax Appellate Tribunal under Section 256(1) of the Incom...