Archive for December, 2007

The issue before the Tribunal is the gifts amounting to Rs. 12 lakhs in cash and Rs. 62 Lakhs in immovable property received by Mayavati. The donors had even borrowed money and made the gifts to her. The AO was not convinced but the CIT(A) was and Revenue is in appeal before the Tribunal. Assessee Mayavati is also before the Tribunal pleading Standard deduction of Rs. 30,000/-. Full Article

Section 80C of the Income-tax Act provides for a deduction of up to Rs. One lakh to an individual or a Hindu undivided family (HUF) for:- (i) making investments in certain savings instruments; or (ii) incurring expenditure on tuition fee and repayment of housing loan. Full Article

The Reserve Bank of India (RBI) has clarified that a company in the structure of Hindu undivided family (HUF) cannot access public deposits if it is in the business of finance and on-lending. It can only access funds from relatives and family members. However, companies of such structures can access public deposits (inter-corporate deposits) as defined under the company law if their operation is other than financing. Full Article

Right to Information is a fundamental right - Income Tax Department to furnish information sought within two weeks - serious note taken of lackadaisical approach of Department in releasing information - Delhi High Court Full Article

The government on Monday asked the investors planning to put their money in IPOs to check with the Ministry of Corporate Affairs on issues like the promoters' track record and regulatory compliances. Investors should verify the track record of the company and its promoters, compliance status with various regulations and whether any of its officers had been found guilty of economic offence, the Ministry of Corporate Affairs said. Full Article

The definition of the term `Asset' includes any building, whether it is used for residential or commercial purposes or for the purpose of maintaining a guesthouse. WEALTH TAX is a tax on the value of wealth owned by a person, levied under the Wealth Tax Act. The tax is levied @ 1 per cent on the amount of wealth as on 31st March of every year, where such amount exceeds Rs.15,00,000. This is similar to the basic exemption limit of Rs.1,00,000 provided under the Income Tax.. Full Article

Commissioner of Income-tax, Delhi IV v. Insilco Ltd. - Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/rate of - Assessment year 1999-2000 - Whether in view of decision of Delhi High Court in CIT v. Woodward, Governor India (P.) Ltd. [2007] 162 Taxman 60, Tribunal was correct in allowing depreciation to assessee on increase in cost of plant and machinery due to increased liability on account of foreign exchange rate fluctuation on last date of accountin.. Full Article

If in law income has to be taxed in hands of AOP, it has to be taxed as such, and mere fact that the income is taxed in hands of individual members of AOP, does not bar Assessing Officer from taxing AOP-ITAT . In a recent case of Pradeep Agencies-v.- Income-tax Officer Delhi Tribunal held that even if the income is taxed in hands of individual members of AOP, does not bar Assessing Officer from taxing AOP. Full Article