"23 March 2019" Archive

Reopening u/s 148 not sustainable in absence of reason to believe that income has escaped assessment

DCIT V/s. M/s Kargwal Products P. Ltd. Vs (ITAT Mumbai)

Basic requirement of reopening of assessment is ‘reason to believe’ that the income has escaped assessment without which reopening under Section 148 of Income Tax Act, 1961 is is not sustainable ...

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Capital gain assessable in the hands of legal heirs who inherited the land and shared sale consideration

Sushila Devi Meena Vs ITO (ITAT Jaipur)

Capital gain to be assessed in the hands of all the legal heirs who have inherited the land and also shared the sale consideration. Cost of acquisition has to be determined by considering relevant provisions of the Act as well as the fair market value of the land as on 01.04.1981....

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AO must prove that sale of agricultural land is in the nature of trade to tax gain as business income

Pr. CIT Vs Heenaben Bhadresh Mehta (Gujarat High Court)

Sale of Agricultural Land by the assessee was not 'adventure in the nature of trade' and therefore, profit earned on such sales cannot be taxed as business income....

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How to Claim Deduction of Interest Payments on Home Loan of Under-construction House

A home loan must be taken for the purchase/construction of a house and the construction of the house must be completed within 5 years from the end of financial year in which loan was taken. If you are paying EMI for the housing loan, it has two components – interest payment and principal repayment. The […]...

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Posted Under: Income Tax |

GST on Fixed Assets

GST Provisions for Fixed Assets Background Fixed Assets were subjected to separate provisions under Excise and Service Tax under Cenvat credit rules, 2004. There were several restriction on availability of Cenvat credit, Sale and disposal of Fixed Assets under the previous regime. Under GST, the provision are more liberal as compared to r...

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Posted Under: Income Tax |

GST Impact: Transfer of Business conversion of Pvt Ltd to LLP

Company Act, 2013 or LLP Act, 2008 allows companies or LLP or Partnership Firms to change their constitution or convert them i.e. from Private limited to LLP or any other combination. In such a situation, it’s very important to understand the impacts of the GST. We observed that their merger, demerger or amalgamation or conversion [&hel...

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Posted Under: Income Tax |

SEBI circular on Valuation of money market & debt securities

SEBI/HO/IMD/DF4/CIR/P/2019/41 (22/03/2019)

Valuation of money market and debt securities which are rated below investment grade:2.1 In order to have uniformity and consistency across the Mutual Fund industry on valuation of money market and debt securities rated below investment grade, the following has been decided:...

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CESTAT expresses serious concern on communications to appellants citing Asian Resurfacing case

Vijayanagar Sugars Pvt Ltd Vs Commissioner of Central Excise, Customs and Service Tax (CESTAT Bangalore)

Vijayanagar Sugars Pvt Ltd Vs Commissioner of Central Excise, Customs And Service Tax (CESTAT Bangalore) These applications of M/s Wellcast Steels Ltd, M/s Vijayanagar Sugars Pvt Ltd and of Shri R Rajendra Kumar under section 35F of Central Excise Act, 1944, read with section 35C(2A) of Central Excise Act, 1944 and with rule 41 of [&helli...

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CAIT not happy with calling of GST as ‘ Gabbar Singh Tax’

Dear Shri Rahul ji,We have come across one of your statement made yesterday at a Rally that traders are suffering from GST and if you come to power you will abolish Gabbar Singh Tax as called by you for GST....

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Posted Under: Income Tax |

Addition cannot be made for Share Capital as undisclosed Income merely on surmises

ACIT Vs Gowthami Chemicals & Pesticides (P) Ltd. (ITAT Visakhapatnam)

ACIT Vs Gowthami Chemicals & Pesticides (P) Ltd. (ITAT Visakhapatnam)  In this case, the assessee has furnished the confirmation letters explaining the identity of the shareholder, address and sources of income of the contributor to the share capital along with the evidence for land holdings and copies of IT returns in 4 cases before...

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