THE WEEKLY TAX GNAN (w-01)

 

1)    The day of arrival must be ignored while calculating the period of stay in India to determine the residential status of an assessee.

2)    Cars imported into India as Completely Built Units (CBUs) are subject to 100% customs duty.

3)    Period of holding of a flat has to be reckoned from the date of the Allotment Letter though the Absolute sale deed is executed later – ITAT Bengaluru, in Sri Mahendra Singh Ramsingh V/s ITO.

4)    Depreciation cannot be denied for non-deduction of TDS – Karnataka High court in Tally Solutions Private Limited V/s CIT(Appeals).

5)    The rate of depreciation on the iPad is 15%. Though the device has some computing capabilities, it is not a computer and hence not eligible for a higher rate of depreciation @ 40% - ITAT Amritsar in Kohinoor Indiana Private Limited.

6)    Higher rate of depreciation @ 40% can be claimed on UPS as Computers cannot run without UPS. – Expeditors International (India) Private Limited V/s CIT Delhi.

7)    Prior period expenses can be claimed as business expenditure if the related bills are received in the current financial year. ACIT Hyderabad in Hill Country Properties Limited case.

8)    Income earned from allowing to fix the Antenna Tower on the Terrace of the building shall be taxed as “Income from House Property” and the standard deduction of 30% can be claimed. ACIT, Mumbai, in Maker Tower Premises Co-operative Societies Limited.

9)    ROC Costs and professional fees paid to increase the authorized share capital are considered Capital expenditures and cannot be allowed as a deduction while computing the Total Income. Abhishek Steel and Power Limited V/s. CIT, Delhi.

10)        Income earned from hoarding advertisements placed on foot over bridges and bus shelters is eligible for deduction u/s 80-IA since the building of the foot over bridge and bus shelter qualifies as infrastructural facility for the purpose of section 80-IA – Calcutta High Court.

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CA Ramakrishna Sanjay