Since the Company had not commenced its business of development ...

Court Rules Company Expenses Non-Allowable Due to Lack of Business Activity in Special Economic Zones.

January 4, 2017

Case Laws Income Tax HC

Since the Company had not commenced its business of development of SEZ/Real Estate, the expenditure claimed could not have been treated as the expenditure incurred for the purpose of business - Since the expenditure was not allowable expenditure, it amounted to irregular allowances of loss. - HC

View Source

← Previous Next →

Since the Company had not commenced its business of development ...

Court Rules Company Expenses Non-Allowable Due to Lack of Business Activity in Special Economic Zones.

January 4, 2017

Case Laws Income Tax HC

You may also like:

Allowable business expenses - There is difference between commencement of the business and setting off of the business. All the expenses incurred pre-commencement are to...

The High Court quashed the reassessment proceedings initiated against the non-existent amalgamating company. Relying on the Supreme Court's decision in Maruti Suzuki...

Allowable business expenditure - the ld. CIT(A), without considering the same, confirmed the order of the Assessing Officer by noting that the expenses are relating to...

The Appellate Tribunal considered the disallowance of club expenses to determine if they were incurred for business purposes. It held that the Assessing Officer's...

Offences triable by Special Court - offences other than the Companies Act i.e. under the IBC Act - The Supreme Court held that the IBC is a complete code in itself and...

The HC ruled that the petitioner, a charitable hospital, is exempt from tax under the Madhya Pradesh Commercial Tax Act, 1994 for medicine supplies and canteen services....

Disallowance of prior period expenses pertaining to expenditure crystallized or details received after completion of earlier years' audits. Genuineness not doubted,...

Disallowance of commission paid to foreign agents - The Tribunal upheld the disallowance of commission expenses to both domestic and non-resident companies due to the...

Pharmaceutical companies’ gifting freebies to doctors, etc. - whether Allowable Business expenditure under Section 37(1)?

Denial of claim of loss or to categorize certain expenses as pre-operative expenses - commencement of business during the year - assessee’s business was ‘set up’ or not...

Deduction u/s 80 IB (10) - allowable expenses to project - Since all the administrative expenses cannot be linked to the activities reasonably, it can be allocated...

HC determined that amendment to Section 197(15) of Companies Act 2013, replacing "punishable with fine" with "penalty" through Companies (Amendment) Act 2019, does not...

Seeking winding up of respondent company - Failure to pay outstanding dues - section 434 of the Companies Act, 1956 - The court noted the substantial unpaid amount...

Addition towards office rent and office maintenance charges - apportionment of expenses to the sister concerns and group companies - When all the assessee's sister...

Disallowances of expenses - no business activity - merely lull in the business activities does not mean that the assessee has closed down its business activities. - the...

Quick Updates: