Transfer
This query is : Resolved
18 December 2015
A WITHOUT INFORMING B USED HIS TRADEMARK.2 MONTHS LATER B CAME TO KNOW ABOUT THIS FACT AND FILED A CASE AGAINST A.COURT ORDERED A TO PAY 50,00,000 TO B FOR MISUSE OF HIS TRADE NAME.LOSS OF PROFITS FOR 2 MONTHS 15,00,000 NOT INCLUDED IN COMPENSATION ORDERED BY COURT.
1.UNDER WHICH HEAD IT IS TAXABLE AND WHY?
2.WHAT ARE THE EXPENSES HE CAN CLAIM LIKE SUIT FILE EXPENSES.
3.CAN B CLAIM LOSS OF PROFITS DUE TO LOSS OF CUSTOMERS.
4.IS TRANSFER IN THE ABSENCE OF WILLFULNESS, TREATED AS TRANSFER AS PER IT ACT.COMPARE WITH COMPULSORY ACQUISITION BY GOVT.
1.UNDER WHICH HEAD IT IS TAXABLE AND WHY?
2.WHAT ARE THE EXPENSES HE CAN CLAIM LIKE SUIT FILE EXPENSES.
3.CAN B CLAIM LOSS OF PROFITS DUE TO LOSS OF CUSTOMERS.
4.IS TRANSFER IN THE ABSENCE OF WILLFULNESS, TREATED AS TRANSFER AS PER IT ACT.COMPARE WITH COMPULSORY ACQUISITION BY GOVT.
18 December 2015
sorry 50,00,000 and 15,00,000...what is the relevance? I could not get. Please elaborate.
18 December 2015
Dear Madhu
Does the amount you receive is for the compensation for loss or else.
1. If it is compensation for loss i.e it is a revenue income taxable under head PGBP i.e business
income.
2. ANy expense related with the litigation is allowed as expense.
i.e advocate fees, conveyance , other litigation expenses.
3. Claim of Loss i.e Rs.1500000/- is a notional figure.
and notional losses are not allowed in income tax. Hence cannot claim such loss.
4.Query no.4 not clear pls elaborate.
Does the amount you receive is for the compensation for loss or else.
1. If it is compensation for loss i.e it is a revenue income taxable under head PGBP i.e business
income.
2. ANy expense related with the litigation is allowed as expense.
i.e advocate fees, conveyance , other litigation expenses.
3. Claim of Loss i.e Rs.1500000/- is a notional figure.
and notional losses are not allowed in income tax. Hence cannot claim such loss.
4.Query no.4 not clear pls elaborate.
21 December 2015
thank you.actual loss of profits is 65,00,000 but after long debate court ordered 50,00,000.can i claim remaining 15 lakhs loss while filing it return.
21 December 2015
Dear MAdhu bau
as you say loss was Rs.65lacs but dear this is a notional loss.
Since court has considered 50lacs as loss now you cannot claim rest 15lacs as loss uner income tax.
as you say loss was Rs.65lacs but dear this is a notional loss.
Since court has considered 50lacs as loss now you cannot claim rest 15lacs as loss uner income tax.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Free lancer income
- Specified Profession
- Last year TDS Claim
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
