"13 July 2015" Archive

Whether writing of bad debts in accounts sufficient to claim deduction U/s. 36(1)(Vii)?

The Delhi High Court, has held in CIT vs. Samara India(P) Ltd. (2013) 216 Taxman 93 , following the decision of Supreme Court in T.R.F. Ltd. Vs. CIT(2010) 323 ITR 397:190 Taxman 391(SC), that for an assessee to claim deduction in relation to bad debts it is, now, no longer necessary to establish that debt had become irrecoverable and it i...

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Posted Under: Income Tax |

Practice & Validity of Retrospective amendments in Tax Laws

Recently SC held that in exercising legislative power, the legislature by mere declaration, without anything more, cannot directly overrule, revise or override a judicial decision. It can render judicial decision ineffective by enacting valid law on the topic within its legislative field fundamentally altering or changing its character re...

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Posted Under: Income Tax |

Sale consideration taxable in the year in which sale transaction Completes

DCIT Vs Ohm Developers, (ITAT Ahmedabad)

‘On money’ received by the assessee did not have the character of income but was only an advance like the one received through cheque. Both will become part of the sale consideration to the assessee simultaneously on either handing over the possession of the flats or on execution of transfer deed whichever happens earlier....

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No addition can be made u/s 2(22)(e) when assessee is not a shareholder

Satellite Cable TV Network Pvt. Ltd. Vs. ITO (ITAT Mumbai)

The dividend can be received or deemed to have been received only by shareholder of the company, therefore, the provisions of section 2(22)(e) enlarging the scope of dividend under the express deemed dividend cannot be invoked in case of a person who is not a shareholder of the company who has advance the loan....

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Loss in pension fund has to excluded from insurance business income

Birla Sunlife Insurance Company Ltd. Vs JCIT (ITAT Mumbai)

Tribunal in this above case decided two debatable issues. Firstly that the mistake can be rectified after assessment attained finality and assessee had accepted the assessment order. The same is decided by the tribunal in the light of decision of apex court. ...

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ITAT being final fact finding body can direct AO for making addition by ignoring report of valuation officer

CIT Vs Parminder Singh (Punjab & Haryana High Court)

ITAT is the final fact finding body and high court cannot decide a question related to fact of the case. However can decide that whether ITAT has rightly decide a matter or not. If high court found that matter was not decided on facts then it can send back matter to ITAT for fresh examination but ...

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CIT can look into genuineness of activities of trust to satisfy himself about its activities

CIT Vs Sri Guru Gorakh Nath Charitable Educational Society, Ropar (Punjab and Haryana High Court)

CIT was entrusted with powers under section 12 AA to look into the activities of the trust to satisfy himself regarding the charitable nature of activities. Under Section 12A, the provisions of Sections 11 & 12 shall not apply in relation to the income of any trust ...

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Step by Step guidelines for EVC based ITR Filing

Electronic verification code means a code generated for the purpose of electronic verification of the person furnishing the return of income as per the data structure and standards specified by Principal Director General of Income-tax (Systems) or Director General of Income‑tax (Systems).’...

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Posted Under: Income Tax |

Taxability of Software under Present Indirect Tax Laws & Proposed GST With Examples In India

Information Technology (IT) industry has grown multi folds in last 2 decades in India. It is one of the most revenue generating sector for government, job creating sector for individuals. The taxability of Software/Solutions/Clouds has always been a litigative area because of difficulty in its classification as goods or service due to its...

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Posted Under: Income Tax |

How to do Electronic Verification of Income Tax Return

Notification No. 2/2015 dated 13/07/2015 regarding Electronic Verification Code (EVC) for electronically filed Income Tax Return as an alternative mode of verification released. EVC would verify the identity of the person furnishing the return of income . ...

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