Blog # 12. Half Monthly Digest (Income Tax) - July 2017

In this edition, we have analysed few orders. A very brief catch note of the related section of The Income Tax Act, 1961, indicates the contents of the order. For reading the whole order, click on the hyperlink attached with the name of the order.

S.221(1). Penalty u/s 221(1) cannot be levied on the interest component charged on “tax”.




221(1) – Penalty u/s 221(1) cannot exceed the amount of “Tax in arrears”


S.37(1). Predevelopment expenses which are directly identifiable with the operations and maintenance of existing business shall be treated as revenue expenses, irrespective of treatment given in the books of accounts.




44AA. Separate books of accounts would be justified only when several distinct business are carried on and not when several business activities are carried on within the same business.



S.68. Where the assessee during the course of assessment proceedings, produced all the documentary evidences to prove identity, genuineness and creditworthiness of share applicants, addition u/s 68 of the Act cannot be made on the ground that the appellant could not produce share applicants in person.



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