"17 March 2019" Archive

Expenditure on removal of encumbrance includible in cost of new house property

ACIT Vs Himanshu Jayanti Lal Kamdar (ITAT Ahmedabad)

While computing exemption under section 54F, expenditure incurred towards vacating the new house property from tenants were includible as part of its cost, because existence of encumbrance was specified in the purchase agreement and original cost of acquisition was much lower than fair market value of the house property due to such attach...

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‘Right to collect toll’ being intangible asset eligible to depreciation U/s. 32(1)(ii)

ITO Vs M/s. Ashoka Highways (Bhandara) Ltd. (ITAT Pune)

Depreciation on right to collect toll being infrastructure and not on toll road, where cost incurred for development and construction of infrastructure facility was a right in nature of intangible asset falling within purview of section 32(1)(ii). Order of AO in amortizing expenditure over period of facility and allowing the same was reve...

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Interest earned on deposit of surplus funds – Business Income?

Hindustan Unilever Ltd. Vs A CIT (ITAT Mumbai)

 Interest earned on deposit of surplus funds could not be taxed as business income in view of the fact assessee was not in the business of money-lending....

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Addition U/s 68 justified on failure to substantiate gift with supportive evidences

Vicky Jethani Vs ITO (ITAT Jaipur)

Income from undisclosed sources--Addition under section 68--No documentary evidences- As assessee failed to substantiate gift transaction with supportive evidences, AO was justified in making addition under section 68....

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Licence fee paid for using MS Office software cannot be treated as Capital expenditure-

M/s. ILink Multitech Solutions Pvt. Vs DCIT (ITAT Cheenai)

By purchasing licence to use MS Office software assessee received enduring benefit in the course of earning of profit, however, it did not become owner of the software, therefore, licence fee could not be treated as capital expenditure....

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Additions u/s 68 merely for not producing directors of investment companies is not sustainable

Income Tax Officer Vs BSNI Commercial Pvt. Limited (ITAT Kolkata)

Whether Additions u/s 68 merely on the ground that the assessee could not produce the directors of the share subscribing companies is sustainable....

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Penalty order u/s 271D & 271E would reckon from date when SCN was issued by AO

Income Tax Officer Vs Shri Prashant Sharma (ITAT Jaipur)

Penalty order u/s 271D and 271E would reckon from the date when the show cause notice was issued by the AO and not from the date when the show cause notice was issued by the Joint Commissioner who is competent to pass the penalty orders....

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Appeal (High Court)–statute confers a limited right of appeal only in a case which involves substantial question of law

Janardhanam Balaji Vs The Additional Commissioner of Income Tax (Madras High Court)

Janardhanam Balaji Vs ACIT (Madras High Court) Right of appeal is not automatic. When statute confers a limited right of appeal only in a case which involves substantial question of law, it is not open to sit in appeal over factual findings arrived at by AO, CIT(A) and Appellate Tribunal. Hence, appeal was not entertained. […]...

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Situs of owner of intangible asset, would be closest approximation of situs of intangible asset

M/s. Lal Products Vs Intelligence Officer (Kerala High Court)

M/s. Lal Products Vs Intelligence Officer (Kerala High Court) Hon’ble Kerala High Court had an occasion to determine the situs of sale of incorporeal goods namely, patents and trademarks when the contract of sale was executed by the Appellant in the state of Gujarat where they had one operating manufacturing plant while the HO of [&hell...

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HC on issue of prosecution notice despite admission of Appeal by HC

M. Suresh Company Pvt Ltd Vs Pr. CIT (Bombay High Court)

M. Suresh Company Pvt Ltd Vs Pr. CIT (Bombay High Court) 1. This Motion is taken by the appellant assessee in Income Tax Appeal No. 738 of 2016. The appeal arises out of a judgment of the Income Tax Appellate Tribunal confirming penalty against the assessee under Section 271(1)(c) of the Income Tax Act, 1961. […]...

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Date of allotment is date on which purchaser can be stated to have acquired the property

Vembu Vaidyanathan Vs Pr. CIT (Bombay High Court)

Vembu Vaidyanathan Vs Pr. CIT (Bombay High Court) During the course of assessment the Assessing Officer examined this claim and came to the conclusion that the gain arising out of sale of capital asset was a short term capital gain. The controversy between the assessee and the revenue revolves around the question as to when […]...

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What is Cess and Surcharge

What are Cess and Surcharge? While calculating income tax, you have to calculate Cess and Surcharge also. Especially for those who are going to file income tax for the first time, the term Cess and Surcharge is a bit of a brainwave. In this article, we will understand the meaning of Cess and Surcharge. It […]...

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Posted Under: Income Tax |

Situations where tax is payable even if Income is less than Rs. 5 lakhs

Situations where person has to pay tax even if Income is less than Rs. 5 lakhs In Budget 2019 our finance minister has announced that no tax will be paid on Income up to Rs. 5 lakhs. Many of us misunderstood that the income tax slabs have been increased, whereas the finance minister has mentioned […]...

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GSTR 3B Payment and Offset liability, Old Rule or New Rule?

Now as per CGST Amendment act 2018 Prescribed the New rule for Utilization of ITC as Given in Sec 49A 49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or […]...

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Posted Under: Income Tax |

Clearing CA Exam (IPCC and Final Grp-2) in Short Duration

Since, this is my first article, Let me clear that the article is based on my personal experience while undergoing CA Course. I entered through direct entry after my TY BCom exams. And the interesting part during my college years was, I only studied during the examination days (i.e. one day before exams). On friends […]...

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Posted Under: Income Tax |

Search & Seizure (Raid) by Income Tax Department Part I- During raid

Search and Seizure  (raid)  by Income Tax Department Part I – During raid  People are afraid of ‘Income Tax Search and Seizure’ due to lack of proper knowledge and complicated law. Knowing the following will ease them. One should not worry if they are genuine. What is ‘Income Tax Raid’ ?  It  means a search [&he...

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Posted Under: Income Tax |

INC-22A (KYC for the companies)

INC- 22A: Active Company Tagging Identities and Verification (ACTIVE) Introduction: INC -22A is a KYC Form for companies. The intention of MCA behind this form is to detect Shell Companies and update information of all the active companies. Who shall file INC-22A? As per Rule 25A of the Companies (Incorporation) Rules, 2014, INC-22A is re...

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Posted Under: Income Tax |

Sales Promotion Schemes – Taxability and ITC

The Government has issued Circular No. 92/11/2019-GST dated 7 March 2019 where certain aspects with respect to treatment of various sales promotion schemes, their impact on taxable value and input tax credits (ITC) have been clarified. A synopsis of the various cases discussed in the Circular is provided below. Cases discussed in the Circ...

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Posted Under: Income Tax |

Income Tax Dept conduct searches 5 locations in J & K

Income Tax Dept conducted searches at 5 locations in Jammu & Kashmir region on 14/3/19. The actions are part of Deptt’s continued drive against use of black money by disruptive elements in the State; also send message of deterrence 2 those intending 2 vitiate democratic process of free & fair election. Prominent LOC trader who [...

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Posted Under: Income Tax |

First Invest and then Expense

First Invest and then Expense should be our Tag Line. It required to be kept or pasted at a place from where it always be flashed in front of our eyes. The reason behind above is to just change our age old attitude or behavior of expending first and then investing balance if any. The […]...

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Posted Under: Income Tax |

Format for Bill of Supply for goods & Service as per notification no. 2/2019 CGST Rate

Format for Bill of Supply for goods & Service as per notification no. 2/2019 CGST Rate Notification no. 02/2019 CGST Rate has been issued for Composition Scheme for Service provider. Format for bill of supply is attached herewith. Bill of Supply For Service and Goods (Taxable person paying tax in terms of notification No. 2/2019-C...

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Posted Under: Income Tax |

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