Business Investment Credit against Service Income

I had made a small investment in a company last year. I have had professional services income (paid service tax on it). Can the investment serve as a tax offset against the services income? more  

Hi Faisal,

You mean general deduction but won't this be related with deductions under
Business Income Alone.

Anyways we do not know if this is an infrastructure company do we. What do
you feel about Sections 32AB Investment Allowance on capoital expenditure
in relation to certain businesses.


Ashish Gosain. more  
if investment is eligible u/s 80C of IT , then u get tax rebate more  
Dear Sir,

I write in reply. As you may be aware that Gains and profits from rendition
of services is generally included under the gains on the head of Business

*The income from the Head "Profits or gains from Business or Profession" is
subject to deductions under Sections 30-37, Income Tax Act, 1961. Sections
32A and Sections 32AB relate to Investment Allowance for investment in
machinery. **Section 35AD talks of one time deduction for specified
business investment i.e. certain sectors. *
*Please mention nature of activity, time frame of investment and profile of
business carried on by the company you invested in to answer your query
specifically. *
In case your situation is different then you may note the following:

Shortly, *the answer to your question on investment, (on general tax
principles) is if the expenditure is in the nature of investment towards
capital expenditure i.e. expenditure incurred in acquiring, building,
maintaining capital assets, then it is not allowable, unless specified. ** *
*Any investment which is revenue expenditure i.e. expenditure incurred
from the perspective of generating revenue is deductible e.g advertising.
(Based on Delhi high Court Judgments which are not listed here for ease of
understanding.) This is also based on accounting principles and concepts
behind Income tax laws.*
*Please let me have your revert on my queries. Also indicate if you want a
legal opinion on applied practical aspect/s of the same. You can contact me
at 9958190988 at 1:00 P.M tommorrow.*
*Thanks and Regards,*
*Ashish Gosain.*
**Advocate,Supreme Court and Tax Return Preparer. more  
dear plz explain your question clearly more  
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