"17 May 2023" Archive

Capital Gain Tax Exemption – Part 2 Sale of Inherited Property

In this article, let us focus on specific issues involved in Capital Gain tax exemption on the sale of inherited property. An attempt has been made to simplify the relevant provisions & legal decisions with the help of Illustrations....

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Posted Under: Income Tax | ,

Understanding section 56(2)(viib) of the Income Tax Act 1961

Section 56(2)(viib) of the Income Tax Act encompasses a provision that pertains to closely-held companies issuing shares to resident investors at a value exceeding the “fair market value” of those shares. In such cases, the surplus amount of the issue price over the fair value is subject to taxation as the income of the compan...

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Posted Under: Income Tax |

AAR Locus Standi: Victory for Applicants or Pandora’s Box for Litigation?

The recent legal dispute regarding Anmol Industries Ltd’s application for an advance ruling on the applicability of an exemption notification issued under the GST Act, and the subsequent rejection of the application by the West Bengal Authority for Advance Ruling (AAR) due to lack of locus standi, followed by the reversal of the rul...

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Posted Under: Income Tax |

Section 271B Penalty Sustained even where Books of Accounts Not Maintained at all

Rakesh Kumar Jha Vs ITO (ITAT Ranchi)

Rakesh Kumar Jha Vs ITO (ITAT Ranchi) Assessee has been running the business of imparting tuition classes. As per the statement of facts furnished by the assessee, assessment was made on estimation basis on account of non-maintenance of books of accounts applying provisions of section 145(3) being 8% of gross receipts u/s 145(3) . Assesse...

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How to deal with Special drive against fake GST registration?

Let’s first understand, what this drive is all about & why is this being started? In the National Co-ordination meeting held on 24th April 2023, various issues in relation to bogus GST registration, fake GST ITC availment & passing, use of forged documents for GST registration etc. were addressed. It was decided in the meeting [...

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Posted Under: Income Tax |

Strengthening the GST System: Special Drive against Fake Registrations

Goods and Services Tax (GST) system plays a pivotal role in streamlining indirect taxation in India, ensuring transparency and accountability. To further fortify the integrity of the GST framework, the GST Department has recently announced a Special All-India Drive against Fake Registrations....

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Posted Under: Income Tax |

Addition of sales reversal entry as unexplained expenditure is unjustified

Chotanagpur Petroleum Agency Vs PCIT (ITAT Kolkata)

ITAT Kolkata held that addition of sales reversal entry alleging the same as unexplained expenditure is unjustified and unsustainable in law....

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Penalty u/s 271(1)(c) not sustained as concealment or furnishing inaccurate particulars not proved

Goldstar Finvest Pvt. Ltd. Vs  Commissioner of Income Tax (ITAT Mumbai)

ITAT Mumbai held that penalty u/s 271(1)(c) of the Income Tax Act unsustainable as entire addition is made on estimation basis and at no point of time it is proved that assessee has concealed the particulars of income or has furnished inaccurate particulars of income....

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2023 – International Year of Millets

I attended an event ‘Accelerating Growth of Integrated Agriculture Value Chains in Maharashtra” organized by IMC Chamber of Commerce & Industry’ on 15th May, 2023. Following is the  update on the event. The event included three commodities that are  grown on  fairly large scale in Maharashtra: Millets, Edible Oil Seed...

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Posted Under: Income Tax |

FIR filed against Secretary of Red Cross not quashed as irregularities observed in order awarded to firm owned by his daughter

Manoranjan Sharma Vs State of Haryana (Punjab and Haryana High Court)

Punjab & Haryana High Court refused to quash the FIR filed against the Secretary of Red Cross as several irregularities committed in the process of awarding an order to the firm owned by the daughter of the Secretary....

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