A new way to appraise Income Tax Officers

Ministry of Finance find a new way to appraise income tax officersincome tax officers

Now onwards Government do not appreciate income tax officers issuing notices for exaggerated & baseless tax demands.

Income Tax department modified Annual Performance Appraisal Report (APAR) of assessing Income Tax officers to bring about greater accountability.

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No disallowance if interest free loan for biz purpose

If interest free loan given in business expediency to Sister concern, no disallowance can be made towards interest paid to banks.Interest free Loan to sister concern

AO has to establish the nexus between the interest bearing borrowings and interest free loan to prove that interest expenditure was for non-business purposes.

‘REPORTABLE’
IN THE SUPREME COURT OF INDIA

HERO CYCLES (P) LTD. Vs COMMISSIONER OF INCOME TAX (CENTRAL), LUDHIANA

CIVIL APPELLATE JURISDICTION; CIVIL APPEAL NO. 514 OF 2008 Continue reading