Sunny Singla Tax Classes

Here is now clarify by ICAI that inter company holding in amalgamation is not topic to discussed in CA IPC and IPCC in BOTH GROUPS

"Anger is false show of strength by a weak person,
while politeness and cool mind reflects
dignity and strength of a strong person"

In the instant case the Tribunal examined the word "In-house" and give following criteria's to check that whether an research is an "In-house research" or not:
(i) An in-house job is that when a job is done within the organization("inside-job") and not by any other organization;
(ii) For doing internal research there can be a possibility to mobilize some external resources. But that external mobilization is only a part of the entire in-house research;
(iii) The language of this section "incurs any expenditure on scientific research on in-house research and development facility" do not suggest that the research is to be conducted within four walls of an undertaking.
Therefore, the words "In house" in section 35(2AB) means by utilizing the staff of an organization or by utilization of resources of the organization if a research is conducted within the organization; rather than utilization of external resources or staff. CADILA HEALTHCARE LTD. v. ACIT [2012] (Ahmedabad - Trib.)

Membership expense allowed as per the provision of AS-26:

Assessee paid Rs. 15 lakh to a club for acquiring its membership for 15 years and claim it as revenue expenditure. AO denied the assessee's claim on ground that membership fees, resulted in enduring benefit to assessee and was thus capital in nature.
The Tribunal held that in view of nature of expense and benefit derived, club membership could be construed as an 'intangible asset', and said expense had to be written off in proportion to its 'life term' and if 'life term' extended beyond ten years it had to be restricted to ten years, as per AS 26. Therefore, following 'matching concept', 'materiality concept' and AS 26, amount of Rs. 15 lakh claimed as expense towards corporate membership had to be apportioned in ten years proportionately from date of obtaining membership. - DCIT v. G. CORP. (P.) LTD. [2012] 21

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