| Scope for making addition on a/c of disallowance of expenditure u/s 40(a) in a case where assessee follows ‘completed contract method’: ITAT MUMBAI, BENCH ‘J’ Posted: 06 Dec 2009 12:29 PM PST Scope for making addition on a/c of disallowance of expenditure u/s 40(a) in a case where assessee follows 'completed contract method' The correct procedure in "completed contract method" is that instead of making addition, if some expenditure are found to be not allowable, the AO should correct the amount of work-in-progress by reducing or enhancing work-in-progress as the case may be ITAT MUMBAI, BENCH 'J' Savala Associates v. ITO ITA No. 4441/M/2008 October 27, 2009... (This is just a summary, read the full article at www.taxpertindia.blogspot.com) 
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| Change of method of accounting of overdue charges from mercantile basis to cash system does not create any income : HIGH COURT OF MADRAS Posted: 06 Dec 2009 12:10 PM PST Change of method of accounting of overdue charges from mercantile basis to cash system does not create any income HIGH COURT OF MADRAS CIT v. Annamalai Finance Ltd. TAX CASE (APPEAL) NO. 1087 OF 2009 NOVEMBER 2, 2009 RELEVANT EXTRACTS : ** ** ** ** ** ** In the instant case, learned counsel for the Revenue is not in a position to demonstrate or satisfy us that due to the change of accounting method... (This is just a summary, read the full article at www.taxpertindia.blogspot.com) 
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| Set off of long term capital loss with indexation against long term capital gains without indexation is allowable ITAT, MUMBAI BENCH ‘B’ Posted: 06 Dec 2009 12:01 PM PST Set off of long term capital loss with indexation against long term capital gains without indexation is allowable ITAT, MUMBAI BENCH 'B', MUMBAI Keshav S. Phansalkar v. ITO ITA NO. 3261/MUM/2007 JUNE 3, 2009 RELEVANT EXTRACTS : ** ** ** ** ** ** 8. Section 70(3) of the Act postulates that for any assessment year where there is a loss in respect of long term capital asset, the asscssee shall be entitled to... (This is just a summary, read the full article at www.taxpertindia.blogspot.com) 
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| ITAT, DELHI BENCH ‘G’ Allowability of expenditure on modification and renovation of a building before commencement of business Posted: 06 Dec 2009 11:57 AM PST Allowability of expenditure on modification and renovation of a building before commencement of business Expenditure incurred on modification and renovation of a building before commencement of business is neither allowable under section 30(a)(ii) nor section 37. ITAT, DELHI BENCH 'G', DELHI Punj Hospitality Pvt. Ltd. v. ITO ITA NO. 3425(Del) of 2009 OCTOBER 23, 2009 RELEVANT EXTRACTS : ** ** ** ** ** **... (This is just a summary, read the full article at www.taxpertindia.blogspot.com) 
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| ITAT, MUMBAI BENCHES ‘E’,Establishment of identity of creditor, creditworthiness of creditor and genuineness of transaction Posted: 06 Dec 2009 11:51 AM PST Establishment of identity of creditor, creditworthiness of creditor and genuineness of transaction It would depend upon facts of each case whether all the three ingredients to discharge the onus to prove cash credit have been proved by the assessee or not; if an NRI, engaged in business of real estate development with substantial means, decided to invest in real estate in India, genuineness of same cannot be doubted unless there is any evidence to contrary. ITAT, MUMBAI BENCHES 'E',... (This is just a summary, read the full article at www.taxpertindia.blogspot.com) 
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