A Ltd. firm had let out the house property owned by it to the employees of its sister concern, B Ltd. Under what head of income should the income from the house property of income from the house property of A Ltd., occupied by the employees of its sister concern B Ltd., be assessed? Can A ltd., claim that such income is not chargeable under the head “Income from House Property”, on the ground that the property has been occupied for the purpose of its business or profession?

Can the expenditure incurred by an assessee to remove an encumbrance be allowed as a deduction u/s 48, in the following cases:-

„« where the mortgage was created by the assessee himself;
„« where the mortgage was created by the previous owner.

Z Ltd., a running concern, received interest on the loans/advances made by it to its debtors. It contended that such interest was to be treated as business income. Is the contention of Z ltd., correct, if such interest was not on account of delayed payment towards sales or compensation/damages or an item relatable to its business.

ABC Enterprises is a partnership firm which was undertaking manufacture of plastics and is a small scale indutry.The business was discontinued Five to six years back and is not having any other income and the Firm has not filed any incometax returns since it has discontinued its business activity.

During the Financial Year 2004-05 the Firm has sold its plant & machinery to a third party and no gain/profit has arisen consequent upon sale of its machinery and the firm has not paid any tax and it has also not filed any tax return. The Firm has received a part of the consideration in the same Financial year 2004-2005 and the same was used for the payment of its creditors. The firm has not received the balance sale consideration from the sale of plant & machinery and there is no chance of recovery.

The Firm has sold its Land and Buildings during the Financial 2007-2008 to a company in which two of the partners of the Firm are also directors in that company say XYZ Private limited. The Firm or its partners have not paid any tax on the gain or on the business income which has arisen on transfer of Buildings and has also not paid any capital gains tax on the transfer of Land and it has also not filed any tax return for the Assessment Year of 2008-09. The company which has purchased has not deducted/paid any tax on behalf of the Firm. The company instead of paying the sale consideration to the Firm has paid the total sale consideration during the Financial Year 2008-09 to the partners of the Firm individually at the mutually agreed ratio and all the partners have got double the investment/capital they have made 12 years back ie for Rs.100/- capital they got total amount of Rs.200/-; The Firm was not formally dissolved and is not functiong for the past 5 to 6 years.
Pl inform the consequences/liabilities/penalties in detail that will arise out of this transaction to the Firm as well as to its partners.
Some of the partners are willing to pay their part of tax on the excess amount they have received, then such excess amount will be treated as long term capital gain or income from business or income from other sources, will these partners will also be required to pay taxes on behalf of other partners who are not willing to pay any tax or the partners are liable for only to the excess amount they have received?

Adinarayana
Email:t.adinarayana@yahoo.com

An employee opted for VRS and claimed exemption of Rs. 5 lakhs u/s 10(10C) and offered the balance Rs. 2 lakh as Salary but also claimed Relief u/s 89 (1) on the balance amount by spreading the same in three preceding years. The Assessing officer while allowing the claim u/s 10(10C) disallowed relief u/s 89(1) on the ground that once exemption was allowed u/s 10(10C), no further exemption could be allowed in relation to any other assessment year in view of the second proviso to section 10(10C). Is the contention of the Assessing Officer correct?

Hi

Currently both of my Final Groups are pending (Old Syllabus), I am planning to give second group (Old) in may 09, if upto nov 09 (last exam under old syllabus) any one of the group is cleared under old syllabus, than do i need to appear only for 1 group under new syllabus or i will be required to clear both groups again ?

Pls revert on praful_trivedi@yahoo.com

Dear sir,

I want to ask that my attemp is due on nov 09 in old course and if i cannot clear ca final than can i give my may 10 attempt in old course or i will transfer to the new course
can you send me this information on my email id arptgarg1986@gmail.com

Dear Sir,

My company incorporated in 2005 and start production in 2006 . During thid period whichever expences made , that's capitalised . and that time we had F.D with Bank , on which we received interest . This interest we shown to " Pre - operative Exps ( interest ) under current asset. it's wrong or right . can I get any Case law against said transaction ?

Please help


Vijay

we sold goods Inter state charging cst @2% to the customer . but if the customer fails to sent c form of aginst sale invice we raised debit note of 10.5% on it. that time we transfer the differnece amt of 10.5% to cst @ 12.5% and made intry as below party a/c dr. to sale cst@12.5% is it right ? where the diffrence amt treated in P & L?

I am Mcom 1st class passed student. Now i am duing job in mfg. co. as a account assistant for last 2 yr. I have accounting experience for 3 yr. I have complite tally certified professional course of 6 month. Which course helpful to me to finding job in abroad. I am thinking to do SAP. any other short term course useful to me ?