Hello to all

I need to know that one of my assessee runs his business of lending money on interest for the last 20 years from 1980 to 2000 but due to recession and risk in the interest business he withdraw the money from takers and deposited it into the bank for FDR's, but regularly claiming the interest income in Business head. So my query is whether he can do so or not on the basis of that it is just suspension of business and not discontinue of the business. or also suggest any other answer.

Thanks
Regards
CA. Sanjeev Sharma

What is meant by circuit breaker? Just observe the following sentence where this phrase is used?

"If you are an investor in the stock market, the happenings of the last few days must have caused a lot of concern. Remember the black Tuesday of January 22 when the market plummeted by more than 11 per cent during the first few minutes of trade. Nervous sellers pushed the panic trigger, sending the markets into a free fall, until it hit the CIRCUIT BREAKER, which automatically caused all trading to come to a halt, both, at the BSE and NSE."

if any company has changed its accounting policy i.e. from wdv to straight line method on year end(31-03-2008) then whether loss on sale of machinary ,sold on 01-10-2007 & depriciation thereon is liable to change retrospectively or not, is retrospective change is required to be given on existing machine on year end only

urban cooperative bank has invested funds as fixed deposit in other coperative bank.
it has invested with a condition that at the time of maturity the interest will be added to principal amount & again will be reinvested.what will be the treatment of interest accrued for the financial year 2006-07?
will it not be claimed u/s 80p from the profit of the bank as income derived by the cooperative society from investment made in other cooperative society?

urban cooperative bank has invested funds as fixed deposit in other coperative bank.
it has invested with a condition that at the time of maturity the interest will be added to principal amount & again will be reinvested.what will be the treatment of interest accrued for the financial year 2006-07?
will it not be claimed u/s 80p from the profit of the bank as income derived by the cooperative society from investment made in other cooperative society?

urban cooperative bank has invested funds as fixed deposit in other coperative bank.
it has invested with a condition that at the time of maturity the interest will be added to principal amount & again will be reinvested.what will be the treatment of interest accrued for the financial year 2006-07?
will it not be claimed u/s 80p from the profit of the bank as income derived by the cooperative society from investment made in other cooperative society?

urban cooperative bank has invested funds as fixed deposit in other coperative bank.
it has invested with a condition that at the time of maturity the interest will be added to principal amount & again will be reinvested.what will be the treatment of interest accrued for the financial year 2006-07?
will it not be claimed u/s 80p from the profit of the bank as income derived by the cooperative society from investment made in other cooperative society?

urban cooperative bank has invested funds as fixed deposit in other coperative bank.
it has invested with a condition that at the time of maturity the interest will be added to principal amount & again will be reinvested.what will be the treatment of interest accrued for the financial year 2006-07?
will it not be claimed u/s 80p from the profit of the bank as income derived by the cooperative society from investment made in other cooperative society?

Construction of the Property was started in June-2007 and it is completed in February-2008. Whether the Pre-EMI (interest) paid can be claimed in the current year as deduction or it should be spread over for 5 years?

Explanation to the Sec 24 says:

Explanation.Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:

In this case there is no interest paid prior to the previous year of completion of construction. The commencement and completion of the construction is within the same previous year

Reimbursement of medical expenditure upto Rs 15000/- per year is exempted. Please advise whether medical bills should also be pertain to same financial year or may be related to previous years also( old bills ).