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'Hero' status remained that of 'Hero' only in income tax appeal before ITAT, Mumbai. Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has given relief to Bollywood actor Jackie Shroff by treating the loan given to wife which was written off as a business loss under the provision of the Income Tax Act in a transaction which is dated way back for the financial year 2008-2009. Jackie Shroff became a savior for wife Ayesha and Quest films with whom the actor had proprietorship and suffered losses from having stakes in films like ‘Boom’ and ‘Sandhya’ which were a huge flop at the box-office. This did lead to a production house shut down and Ayesha left with loans to pay. In FY 2008-09, Jackie sheriff claimed the amount given to his wife as Business loss on the ground that the same is not recoverable. In his return, Jackie had declared it a business loss in his tax return. However, the IT Officer that had reviewed the loan as a personal expense has now written off the total amount as the loss incurred in the business. CIT - Appeal confirmed the addition with a view that amount was drawn as the personal funs and cannot be included as a business loss. Allowing the contentions of the actor, the ITAT held that as the loans were advanced to his wife or her proprietary concern cannot be the only criteria for holding it as personal in nature. As there was no possibility of recovery of these loans in the future, the write-off should be treated as a business loss. The Tribunal furthwr opined that the findings of the Ld.CIT (A) that the monies advanced by the assessee are in the nature of business advances have not been challenged by the Revenue. “However, we find that Ld.CIT (A) sustained the disallowance only for the reason that the assessee has suo moto written off the advances and such suomoto write off is not allowable as deduction u/s. 36(1)(vii) / 37(1) of the Act,” the Tribunal said. ITAT Concluded that - “Once the advances are held to be business advances they are allowable as a deduction either u/s. 37(1) or u/s. 28 of the Act as a business loss. The deduction cannot be denied on the ground that the assessee had suomoto written off the advances"

Jackie Shroff eligible for deduction towards writeoff Loans to Wife is Business Loss: Mumbai ITAT

Valuation Mechanism in GST

Valuation Mechanism in GST for product where TCS is attracted under IT Act.

LIQUIDITY CRUNCH IN BANKING SECTOR

LIQUIDITY CRUNCH IN BANKING SECTOR

TDS on Rent.

TDS on Rent.

section-194h

TDS on Commission and Brokerage.

TDS on interest other than interest on securities

TDS on interest other than interest on securities

No writ could be filed against issues which could be addressed to by appellate authorities under GST Act: Karnatka HC

No writ could be filed against issues which could be addressed to by appellate authorities under GST Act: Karnatka HC

Income is attached to any immovable property cannot be the sole factor for assessment of such income as income from property

Income is attached to any immovable property cannot be the sole factor for assessment of such income as income from property

Authority for Advance Rulings, West Bengal GGL Hotel & Resort Company Ltd., In re [2019] 101 taxmann.com 138 (AAR - WEST BENGAL) The applicant company is in the hospitality and real estate business and is contemplating a new project on a leasehold land. Bengal Housing Infrastructure Development (WBHIDCL) has leased out a piece of land for a period of 32 years to the applicant. The applicant is liable to pay annual lease rent at certain rate. The project is proposed to be completed within a period of two years from the foundation of the project and the lease rent paid during the pre-operative period would be capitalized in the books of account by the applicant. The applicant has sought advance ruling as to whether Input Tax Credit is available for lease rent paid during pre-operative period for the leasehold land on which the resort is being constructed to be used for furtherance of business, when the same is capitalised and treated as capital expenditure. The Authority for Advance Ruling observed that the prohibition on availing of input tax credit is not limited to the civil structure being constructed. It extends to the immovable property in general (other than plant and machinery), which includes the supplies received for retaining the right to use and develop the land. Therefore, the lease rental paid during the pre-operative period would be treated as part of the cost of goods and services received for the purpose of constructing an immovable property and ITC would not be admissible on such lease rental.

No input tax credit is available for rent paid on leasehold land acquired for construction of resort

Share allotment under 'rights issue' not taxable u/s. 56(2)(vii)(c) if shareholders were relatives : Visakhapatnam ITAT

Share allotment under ‘rights issue’ not taxable u/s. 56(2)(vii)(c) if shareholders were relatives : Visakhapatnam ITAT

Interest applicable even on additional tax liability arising due to addition during reassessment

Interest applicable even on additional tax liability arising due to addition during reassessment

Clarification on few important issues in GST

Clarification on few important issues in GST

GST Liability On Liquidated Damages Paid As Per Term Of Contract

GST Liability On Liquidated Damages Paid As Per Term Of Contract

Bihar GST : E- wayBill amount limit have been reduced to Rs.1 Lakh

Bihar GST : E- wayBill amount limit have been reduced to Rs.1 Lakh

A TDS is applicable to department of central government or state government, local authority, governmental agencies and some notified persons notified by government.

TDS UNDER GST AT A GLANCE

BASICS OF GST AUDIT

BASICS OF GST AUDIT

Tax Saving: Capital Gains arising from Inherited Property

Tax Saving: Capital Gains arising from Inherited Property