The ITAT delivered a comprehensive ruling addressing multiple ...

Infrastructure Lender Wins Tax Relief: Section 36(1)(viii) Deduction Allowed for Loans, FCCB Expenses, and Club Fees

February 10, 2025

Case Laws Income Tax AT

The ITAT delivered a comprehensive ruling addressing multiple tax issues. The key outcome was favorable to the taxpayer on several counts: deduction under section 36(1)(viii) was allowed for infrastructure loans and securitization income; disallowance under section 14A was restricted due to sufficient owned funds; club membership fees were deemed revenue expenditure; FCCB issue expenses were allowed as revenue expenditure; and penalty under 271(1)(c) was deleted. The Tribunal rejected pro-rata allocation for section 80M dividend deduction and upheld the taxpayer's right to set off short-term capital losses against higher-taxed gains. For bad debts claims, verification was directed to ensure linkage with provisions created up to March 31, 2016. The ruling maintained consistency with established precedents while providing specific guidance on technical aspects of various provisions.

View Source

← Previous Next →

The ITAT delivered a comprehensive ruling addressing multiple ...

Infrastructure Lender Wins Tax Relief: Section 36(1)(viii) Deduction Allowed for Loans, FCCB Expenses, and Club Fees

February 10, 2025

Case Laws Income Tax AT

You may also like:

Deduction u/s 36(1)(viii) - Whether assessee is eligible for deduction u/s 36(1)(viii) even though the assessee is not an eligible entity under the provisions of the Act...

Revision u/s 263 - Deduction u/s 36(1)(viii) - Insofar as, the second issue of excess allowances of deduction u/s.36 (1)(vii), the assessment order passed by the AO is...

Deduction u/s 80IA - ICD - Inland port - infrastructure facilities - deduction allowed - HC

Addition u/s 68 of the Income Tax Act. The assessee, who did not maintain books of accounts, received interest-free loans from Shri Anil Kumar Singh through normal...

The NCLAT set aside the impugned order and allowed the appeal, holding: i) No fault in the assignment by lenders to Omkara Assets Reconstruction Pvt. Ltd. ii)...

Delay in employee contribution to P.F. - Disallowance u/s 36(1)(va) read with section 2(24)(x) - The onus is on the assessee to prove that it is eligible for deduction...

Payment made for surrender of tenancy rights - deduction allowed u/s 37(1) - AT

The assessee claimed weighted deduction u/s 35(1)(ii) for donation made to M/s Shri Arvindo Institute of Applied Scientific Research Trust at the end of the year. The...

Income from waiver of loan - income changeable to tax or not? - brought to tax under section 28(iv) of the Act or under section 41(1) - it is clear that in the case...

Assessment u/s 153A - claim of deduction under section 80IA(4) - Paper company or not - assessee as a SPV was a mandatory requirement of NHAI - four laning of the...

Real estate development company advanced loans to its Indian subsidiary for funding step-down foreign subsidiaries undertaking real estate projects. Interest paid on...

Depreciation on glow sign boards and oxygen gas cylinders was rejected by the Assessing Officer, holding that the transaction on the last day of the accounting year...

Infrastructure Cess - An Infrastructure Cess, as a duty of excise, imposed on motor vehicles falling under heading 8703. - By virtue of declaration under the Provisional...

Swapping premium - Disallowance u/s 36(1)(viii) - swapping premium is nothing but discounted interest and had originated in the long term finance initially advance -...

Addition u/s 37(1) - disallowing interest provided on loan - loan was used to purchase shares - Assessee received loan in earlier years on which interest is also paid...

Quick Updates: