Once assessee is carrying on a speculation business and profits and gains have arisen from that business during course of assessment year, the assessee is entitled to set off losses carried forward from a speculation business arising out of a previous assessment year - CIT v. Lokmat Newspapers Pvt. Ltd. [ITA (L) No. 3005 of 2009] [2010] 3 taxmann.com 4 (BOM.)

l

The expression "any speculation business" in Explanation to section 73 means a speculation business of assessee in respect of which profits & gains for assessment year in question have arisen and there is no justification to restrict content of that speculation business where profits have arisen by excluding a business involving actual delivery of shares 

Right of carry forward u/s 74(1) in respect of long term capital loss is not hit by provisions of section 70(3) - G. K. Ramamurthy v. JCIT [ITA No. 1367/Mum/ 2009] [2010] 3 taxmann.com 8 (MUM. - ITAT)

l

The case of the revenue that "the long term capital gain is income notwithstanding the fact that it is exempt under section 10(38)" is fallacious 

Profit derived from contract works does not qualify for relief u/s 80-IB - Maruti Tubes (P.) Ltd. v. DCIT [ITA No. 500/Hyd/2009] [2010] 3 taxmann.com 7 (HYD. - ITAT)

l

The word 'derived from' in Section 80-IB must be understood as something which has direct or immediate nexus with the assessee's industrial undertaking 

Section 50C has no application for arriving at value of benefit u/s 2(24)(iv) - Ashok W. Phansalkar v. ITO [ITA No. 6373/Mum/2007] [2010] 3 taxmann.com 6 (MUM. - ITAT)

l

The valuation to be considered under section 50C cannot be taken as value for the purpose of section 2(24)(iv) 

Section 35 refers to 'capital expenditure' and does not require any further requirement - Ayushakti Ayurved Pvt. Ltd. v. ACIT [ITA No. 6541/M/20008] [2010] 3 taxmann.com 5 (MUM. - ITAT)

l

Any expenditure of a capital nature on scientific research is allowable deduction u/s 35(1)(iv) read with section 35(2)(ia) 

Direct tax fetches Rs 2.78 lakh crore till February 

I-T slabs may be further raised in DTC: Finmin 

Professionals under I-T lens for incomplete disclosure 

Direct taxes contribute 55.5% of all tax receipts 

Losses - Terms 'accumulated loss' and 'unabsorbed depreciation' as defined in section 72A(7), do not include unabsorbed capital expenditure on scientific research and, therefore, in case of demerger, benefit of section 72A(4) cannot be extended to resulting company in respect of unabsorbed capital expenditure on scientific research - Income-tax Officer, 1(2)-3, Mumbai v. Mahyco Vegetable Seeds Ltd. [2010] 123 ITD 40 (MUM.) [IT APPEAL NO. 6171 (MUM.) OF 2004]

Expenditure incurred by a corporation or a body corporate constituted or established by a Central, State or Provincial Act - Expenditure incurred by an assessee by way of disbursement of grants and royalty, for objects and purposes authorized by Act, would be allowable as deduction under section 36(1)(xii), provided same would not be in nature of capital expenditure - Oil Industry Development Board v. Assistant Commissioner of Income-tax, Circle 31(1), New Delhi [2010] 123 ITd 67 (DELHI) [IT APPEAL NOS. 952 AND 953 (DELHI) OF 2007]

DTA with USA - where person is resident is to grant credit for taxes paid in country where income arises but only to extent to which it itself levies tax - Manpreet Singh Gambhir v. Deputy Commissioner of Income-tax, Circle, Dehradun [2010] 123 ITD 16 (DELHI) [IT APPEAL NO. 4448 (DELHI) OF 2002]

There cannot be payment of tax outside India and claiming refund in India without actually incurring liability for paying taxes in India - Manpreet Singh Gambhir v. Deputy Commissioner of Income-tax, Circle, Dehradun [2010] 123 ITD 16 (DELHI) [IT APPEAL NO. 4448 (DELHI) OF 2002]