Addition on account of notional increase in employee’s cost - ...

Court Rules Notional Employee Costs Can't Be Added to Income if They Create Surplus in Assets.

June 20, 2022

Case Laws Income Tax AT

Addition on account of notional increase in employee’s cost - surplus in planned assets - As the employee cost was reduced in the Profit & Loss Account, the said amount was also reduced from the income to nullify its effect. In the present case, it is not in dispute that the said entry is a notional entry. Thus, all the consequences in respect of the notional entries will follow and such an entry cannot be treated as an income if in excess / surplus. - No addition can be made - AT

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Addition on account of notional increase in employee’s cost - ...

Court Rules Notional Employee Costs Can't Be Added to Income if They Create Surplus in Assets.

June 20, 2022

Case Laws Income Tax AT

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