"21 April 2019" Archive

Notice for reopening of assessment against a dead person is invalid

Rupa Shyamsundar Dhumatkar Vs ACIT & Ors. (Bombay High Court)

Impugned notice of reopening of assessment was issued on a dead person. There are several judgments of different High Courts holding that the notice or reopening of assessment is invalid in law. Suffice it to say, as per the settled law, notice for reopening of assessment against a dead person is invalid....

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Section 50C cannot be avoided merely for sufficiency of exemption u/s 54EC

Jagdish C. Dhabalia Vs ITO (Bombay High Court)

While giving full effect to the deeming fiction contained under section 50C of the Act for the purpose of computation of the capital gain under section 48, for which section 50C is specifically enacted, the automatic fallout thereof would be that the computation of the assessee’s capital gain and consequently the computation of exemptio...

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Posted Under: Income Tax |

Subsidy received for setting up of new unit is capital receipt

M/s. Alkoplus Producers Pvt. Ltd. Vs DCIT (ITAT Pune)

On going through the language of the Explanation 10, it is manifest that it is attracted only when the object of the Scheme is to subsidize the cost of an asset and not otherwise. If the object of the Scheme is to accelerate the industrial development of the State, then the case is not caught within the mandate of the Explanation 10....

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Gross Working Capital and Net Working Capital

CHAPTER-I :- SUB: WORKING CAPITAL Introduction: Working Capital is such a kind of capital which is required for daily business activities. This helps in keeping the wheel of the business organization running. The operating activities can run smoothly with the sufficient working capital and on the other hand, the same activities can be ham...

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Posted Under: Income Tax |

LTCG on sale of shares cannot be treated bogus merely on investigation report

Mr. Sanjiv Shroff Vs ACIT (ITAT Kolkata)

When AO has not brought any material on record to show that the assessee has paid over and above the purchase consideration as claimed and evident from the bank account then, in the absence of any evidence it cannot be held that the assessee has introduced his own unaccounted money by way of bogus long term capital gain....

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HC orders release of detained goods on Compliance with GST Rule 140(1)

Rajan Joseph Vs Asstt. State Tax Officer & Ors. (High Court Kerala)

It is seen that an identical matter has been disposed of by a Division Bench of this Court in W.A. No. 1802 of 2017, directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of rule 140(1) of the Kerala Goods and Services Tax Rules, 2017....

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GST on Export of Services (OIDAR)

OIDAR (Online Information and Database Access or Retrieval) Services Both the following conditions must be satisfied to be an OIDAR service. If one is not satisfied, the service is not OIDAR. i. Delivery is mediated through internet. ii. The supply is essentially automated involving minimal human intervention and impossible without inform...

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Posted Under: Income Tax |