Income Tax - Page 2

9 deductions that people miss out while filing their ITR

Chapter VI A of the Income Tax Act, 1961 provides for various deductions that are available from the total income of an assessee while computing the taxable income. The assessees are normally aware of certain common deductions such as deduction u/s 80C in respect to contribution made towards LIC, provident fund, deduction u/s 80D for [&he...

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Section 80D Deduction in respect of health insurance premia

Deduction in respect of health insurance premia under Section 80D Analysis of Section 80D In case of an Individual (a) Deduction in respect of insurance premium paid for family: A deduction to the extent of ₹ 25,000 is allowed in respect of the following payments- (1) premium paid to effect or keep in force an insurance on […]...

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Restrictions on Cash Transactions of Rs. 2 Lacs or More under Income Tax

Provisions of Section 269ST Section 269 T was inserted in the Income Tax Act, 1961 by the Finance Act, 2017. The government has aimed to curb generation of black money, to move towards less cash economy and promote digital economy. The government has attempted to target and penalize receiver instead of payer. It is applicable […]...

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Restrictions on Cash Transactions in Real Estate under Income Tax

Restrictions on Cash Transactions in Real Estate under Income Tax, 1961 (Section 50C, section 43CA and section 56(2)(x)) ♦ Stakes in transactions in immovable properties are quite high and so are the tax implications. It is not only perceived but an open secret in India that sale transactions of immovable properties are undervalued lead...

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Restrictions on Loans, Deposits & Advances- Section 269SS & 269T

Analysis of Section 269SS of the Act This section was introduced in the Act with the objective that Unaccounted cash found in the course of searches carried out by the Income-tax Department is often explained by taxpayers as representing loans taken from or deposits made by various persons. Unaccounted income is also brought into the [&he...

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Section 40A disallowance in case assessee opts for presumptive taxation u/s 44AD

Applicabilty of disallowance u/s 40A of the Act in case assessee opts for presumptive taxation u/s 44AD. Sec 40A relates to disallowance related to excess payment of related party, cash payment to a person in excess of Rs. 10,000 in a day, payment to unapproved fund, mark to market losses etc. The comparison of sec […]...

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Disallowance of Depreciation | Section 43(1) | Cash Payment for Fixed Assets

Disallowance of Depreciation section 43(1)) Disallowance of Depreciation where cash payment exceeding Rs. 10,000 is made for purchase of asset (Amendment to section 43(1)) Clause (1) of section 43 defines ‘actual cost’ for the purposes of claiming depreciation. The cost in acquisition of any asset or part thereof in respect of...

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Analysis of Section 40A(3) & Section 40A(3A) of Income Tax Act, 1961

Analysis of Section 40A(3) and 40A(3A) (a) Analysis of sec 40A(3) of the Act. Where payment is made in the year the expenditure is incurred: 100% disallowance of payment if in excess of Rs. 10,000 and not by a/c payee cheque/draft/ECS. [Sec 40A(3)] There are following two conditions for the applicability of this section. If both of [&he...

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Wife can Know Husband’s Income by filing RTI application: CIC

Rahmat Bano Vs. The CPIO, O/o the Income Tax Officer (Central Information Commission, New Delhi)

In a litigation, where the issue involved is of maintenance of wife, the information relating to the salary details no longer remain confined to the category of personal information concerning both husband and wife, which is available with the husband hence accessible by the wife. But in the present case, as stated earlier, the applicatio...

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Interest on business advances held as fixed deposit is Business Income

ACIT Vs National Film Development Corporation Ltd. (ITAT Mumbai)

ACIT Vs National Film Development Corporation Ltd. (ITAT Mumbai) We are of the opinion that considering the facts that assessee’s business -production of films for Ministries of Government of India and various government departments-and the durations for which the amounts were kept with banks the income earned by it has to held as b...

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Vijaya Bank can claim Section 36(1)(viii) deduction as Financial Corporation

CIT Vs Vijaya Bank (Karnataka High Court)

CIT Vs Vijaya Bank (Karnataka High Court) Learned counsel for the revenue submitted that prior to amendment with effect from 01.04.2008, benefit of Section 36(1)(viii) of the Act was not available to a Banking Company and therefore, the assessee is not entitled to claim deduction under Section 36(1)(viii) of the Act. It is further submitt...

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Foreign tax credit available even on income not subjected to tax in India except foreign tax paid in Finland & Canada

Tata Consultancy Services Ltd. Vs Addl. CIT (ITAT Mumbai)

Tata Consultancy Services Ltd. Vs Addl. CIT (ITAT Mumbai) As could be seen, while the Assessing Officer has disallowed assessee’s claim of foreign tax credit in respect of income exempt under section 10A/10AA of the Act on the reasoning that only such income which is subjected to tax in both the countries would qualify for […...

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Prosecution can be launched before Income Tax Assessment completion : HC

Rohit Kumar Nemchand Piparia Vs Deputy Director of Income Tax (Madras High Court)

Prosecution proceedings were separate and distinct from the assessment or re­assessment proceedings. There was no requirement under the Act that the assessment proceedings should be completed before launching prosecution. HC refused to quash prosecution for the compounding of offense under Section 276C(1) of Income Tax Act....

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Know when to say no to cash transactions

We were told by history that before advent of cash there was concept of barter system though barter system where there was no currency ‘no cash’ and things were exchanged according to needs and sooner society realized that barter system having its own series of advantages and disadvantages need to be left behind with time and later on...

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Stay Applications under the Income Tax Act, 1961

Sections 220 to 232 of the Income-tax Act deals with collection and recovery of taxes. These provisions will become active every year in the months of February and March. Probably each officer or Commissioner may have to report to the higher authority the taxes outstanding, and total collection of taxes in their charge. As the scope of th...

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Residential property and Tax on capital gain

When investors make profits on sale of assets like land, shares and mutual fund units, it is termed as capital gains. The investor has to pay tax on the resulting gains that is commonly referred to as capital gains tax. The amount of money outflow from your pocket depends on how long you held the property. If a residential property is hel...

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NRI investments – Some FAQs

One of the first things you should know as an NRI is that your existing bank accounts are no longer valid.The Foreign Exchange Management Act (FEMA) requires you to inform all the banks where you have an account,be it savings or deposits, about your changed residential status. ...

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Service Tax will not form part of aggregate amount for section 44BB

BAKR Hughes Singapore PTE Vs Addl. Director of Income Tax International Taxation (Uttarakhand High Court)

The issue under consideration is whether amount of service tax being statutory levy, received by assessee from its customers was to be included in calculating the aggregate amount referred to in sub-section (2) of Section 44BB of the Act?...

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No TP adjustment for delayed receivables if Same is already been factored in working capital adjustment

Barco Electronic Systems (P) Ltd. Vs DCIT (ITAT Delhi)

Barco Electronic Systems (P) Ltd. Vs DCIT (ITAT Delhi) We have noted that the assessee is not charging interest on overdue debts from the third parties and also the assessee is a debt free company and not paying any interest on funds utilized is business. We have also noted that the assessee company has a […]...

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Direct Tax Vivad Se Vishwas Act, 2020- Issues & Suggestions

Chamber of Tax Consultants has made a representation to Hon’ble Finance Minister on Direct Tax Vivad Se Vishwas Act, 2020 brought to its attention some technical issues in implementation of Vivad Se Vishwas and suggestions to overcome those issues. It  also submitted the same to CBDT Chairman and Revenue Secretary (CBDT).  Text of the...

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ITAT excludes comparable having turnover more than 31 to 62 times

Transcend MT Services Pvt. Ltd. Vs DCIT (ITAT Delhi)

Transcend MT Services Pvt. Ltd. Vs DCIT (ITAT Delhi) Assessee has also argued for exclusion of Infosys BPO Ltd, which is having the turnover more than 31.29 times, and TCS E serve Ltd having turnover of 62 times larger than the assessee does. Therefore, for the reasons given by us for exclusion of I gate […]...

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Income Tax searches at various locations in Uttar Pradesh

The Income Tax Department started a search and survey action on 18/11/2020 in the case of a leading cattle feed producer in Northern India. The search and survey actions are being carried out at 16 locations in Kanpur, Gorakhpur, Noida, Delhi and Ludhiana....

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TDS not deductible on Agency Commission paid to Overseas Agents not having PE in India

DCIT Vs Shamrock Pharmachemi Pvt.Ltd. (ITAT Mumbai)

DCIT Vs Shamrock Pharmachemi Pvt.Ltd. (ITAT Mumbai) We find that assessee is engaged in the business of trading activity of import and export of pharmaceutical ingredients, chemicals and intermediates. We find that the assessee debited a sum of Rs. 4,18,50,792/- in its profit and loss account towards export commission paid to overseas age...

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Interest paid on borrowed funds used for business cannot be disallowed

ACIT Vs Chinsha Property Pvt Ltd. (ITAT Mumbai)

ACIT Vs Chinsha Property Pvt Ltd. (ITAT Mumbai) Since the company was engaged in the business of real estate, property in Tulsiwadi was acquired for redevelopment. Hence, commercial expediency/business purpose assessee had invested ₹.11.25 Crores in the project. Therefore, interest cannot be disallowed. Ld. DR submitted that Assessing O...

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Section 41(1) No Addition without evidence of cessation of trading liability

Nama Properties Ltd. Vs DCIT (ITAT Hyderabad)

Nama Properties Ltd. Vs DCIT (ITAT Hyderabad) In the decisions relied upon by the learned Counsel for the assessee it was held that the genuineness of the trade payables or creditors has to be examined in the year in which they originate and that unless the liability becomes unenforceable or is written off by the […]...

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HC set aside Tribunal order for failure to records that finding of AO was erroneous

PCIT Vs Rakesh Sarin (Madras High Court)

Court under Section 260A would not interfere with the Tribunal's finding of fact could not be applied to the facts of case because the Tribunal did not record any finding of fact that the finding of fact recorded by AO was erroneous and not borne out by records. Thus, the order passed by Tribunal for not calculating the undisclosed income...

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Salient features of Quarterly Return filing & Monthly Payment of Taxes (QRMP) Scheme

NA (20/11/2020)

Who can opt for the scheme: Following registered person (hereinafter RP) can file quarterly returns and pay tax on monthly basis w.e.f. 01.01.2021 : An RP who is required to file Form GSTR 3B with AATO of up to Rs 5 Cr. in the previous financial year is eligible. If AATO crosses Rs 5 Cr. during a qtr., RP will become in-eligible for the S...

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IT Department cannot access data of other clients of a CA if search related to one particular client

S.R. Batliboi & Co. Vs Department of Income Tax (Investigation) (Delhi High Court)

S.R. Batliboi & Co. Vs Department of Income Tax (Investigation) (Delhi High Court) Conclusion: If apparently reliable material could not be directly used against an assessee solely because it was not collected during a Search of that assessee, a fortiori, material palpably concerning a third party with no connection with the raided pa...

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No section 54 Deduction denial for mere Non-Completion of Construction of New House

Estate of Late Dr. S. Zakaulla Masood Vs ITO (ITAT Bangalore)

The issue under consideration is whether the CIT(Appeals) was justified in denying the benefit of deduction to assessee u/s. 54 of the Income Tax Act, 1961?...

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ITAT Restricts addition for Bogus Bills at 5% of bogus purchases

Suresh Mehta HUF Vs ITO (ITAT Mumbai)

The issue under consideration is whether the CIT(A) is correct in confirming the addition made by AO for non-genuine and bogus purchases by applying profit rate at the rate of 12.5% of the bogus purchases?...

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ITAT deletes Addition of sales tax incentive receipt in case of RIL

Reliance Industries Ltd. Vs ACIT (ITAT Mumbai)

Reliance Industries Ltd. Vs ACIT (ITAT Mumbai) The issue under consideration is whether deletion of addition of sales tax incentive/ subsidy as capital in nature is justified in law? In the present case, the assessee in this case is engaged in the business of oil and gas exploration, refining of crude oil, manufacturing of and […]...

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Interest Income on FDR’s Pledged to obtain Contract is Business Income

Awasthi Traders Vs DCIT (ITAT Agra)

The issue under consideration is whether the interest income on FDR’s pledged for security purposes in obtaining the contract business comes within the ambit of business income?...

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No addition for Share application money if Recipient company proves identity, genuineness of transactions & creditworthiness of parties

Network Synthetics Pvt. Ltd Vs DCIT (ITAT Mumbai)

Network Synthetics Pvt. Ltd Vs DCIT (ITAT Mumbai) It is observed that the assessee has discharged its initial onus to prove the identity, genuineness of the transaction and creditworthiness of the parties by filing all these documents. The Tribunal in assessee’s group cases while deleting the additions made u/s. 68 of the Act observed a...

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Pre-filled ITR forms to make tax compliance more convenient

The Pre-filled Income Tax Return (ITR) forms are going to be available for taxpayers. This measure has been adopted in order to make the tax compliance convenient for the individual taxpayers, as notified by the Finance Minister, Nirmala Sitharaman....

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No revision if assessment order was not prejudicial to interests of Revenue

Shri Jitendra Patidar (L/H of Late Shri Satyanarayan Patidar) Vs Pr. CIT (ITAT Indore)

Provisions of section 263 could be invoked when twin conditions i.e. the assessment order was erroneous and prejudicial to the interest of Revenue were satisfied. Revision under section 263 could not be invoked if assessment order was not prejudicial to the Revenue....

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ITAT Sustains Addition for Cash Gifts Received for Marriage, Anniversary & Cancer Treatment from Relatives as evidence was absent

Late Smt. Vineeta Singh Vs ACIT (ITAT Delhi)

The issue under consideration is whether addition made by AO for the cash gifts found in search which is received at the time of marriage and anniversary and cash for cancer treatment is justified in law?...

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In Section 263 Assessment AO cannot go beyond Directions of CIT: Madras HC

CIT Vs Lakshmi Machine Works Ltd. (Madras High Court)

CIT Vs Lakshmi Machine Works Ltd. (Madras High Court) The issue under consideration is whether the AO can go beyond the directions of CIT, even though during the course of fresh assessment proceedings, it is open to the AO to examine any items other than specific item ? High Court states that, the jurisdiction exercised […]...

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Section 195 TDS Applicable on Software Purchase Expenses incurred by Distributor

Kaseya Software India Private Limited Vs DCIT (ITAT Bangalore)

The issue under consideration is whether the CIT(A) is correct in stating that TDS u/s 195 applicable on software expenses without appreciating the fact that appellant was merely acting as a distributor and not having right to have a copy of the software?...

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Section 143(2) Notice to Erstwhile Non-Existent Partnership Firm is Void-ab-Initio

Intas Lifesciences Vs ACIT (ITAT Ahmedabad)

The issue under consideration is whether AO is correct in issuing notice u/s 143(2) in the name of erstwhile partnership firm which was a non-existent entity at that point of time?...

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Common strategies used to avoid Permanent Establishment status

Avoidance of Permanent Establishment (PE) status of Non-Residents are made through various arrangements. Company structures their business in way that status of PE can artificially be avoided. The definition of permanent establishment included in tax treaties is therefore crucial in determining whether a non-resident enterprise must pay i...

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Mere depreciation claim on Goodwill cannot be termed As Colorable

Urmin Marketing P.Ltd. Now known as Unicorn Packaging LLP Vs DCIT (ITAT Ahmedabad)

Urmin Marketing P.Ltd. Now known as Unicorn Packaging LLP Vs DCIT (ITAT Ahmedabad) Vs DCIT (ITAT Ahmedabad) Scheme of the amalgamation can be approved under the provisions of section 2(1B) of the Act where shareholders holding not less than 75% in the value of shares of the amalgamating company become the shareholders of the amalgamated [...

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Providing Information regarding ongoing Income Tax investigation to informer is not appropriate: HC

Principal Director, Income Tax (Investigation) Vs Rajiv Yaduvanshi & Ors. (Delhi High Court)

Principal Director, Income Tax Vs Rajiv Yaduvanshi (Delhi High Court) Moreover, in cases pertaining to Tax evasion petitions like the present case, this Court also exercises its powers sparingly and it is a well-settled principle that only the broad outcome of the Tax evasion petition may be communicated to the complainant, that too upon ...

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Section 10(34) & 10(38) exemption on dividend & LTCG of VCU earned by SARA Fund

Japan International Co-operation Agency (JICA) Vs ACIT (Intl. Taxation) (ITAT Delhi)

Japan International Co-operation Agency (JICA) Vs ACIT (ITAT Delhi) A.O. as well as Ld. CIT(A) have taken a wrong view by holding that the assessee cannot grow tax-free income u/ss 10(34) and 10(35) of the Acts unless additional tax has been paid as per the provisions of Sections 115-0 and 115-R of the Act and […]...

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Income Tax Refund- Everyone wants it, not all get it!

Refund – Everyone wants it, not all get it!! Income tax refund! Sounds quite familiar, doesn’t it? Many of us would have received a refund from the income tax department in the past as well as many have claimed it but not received the same. So, let’s discuss when and how does one get a […]...

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DGGI busted Inter State Fake Invoice racket

Release ID: 1673705 (18/11/2020)

Inter State Fake Invoice racket with fake transactions valued at over Rs. 131 Crore value busted by DGGI involving fraudulent Input Tax credit of Rs. 26.09 Crore...

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Income from time charter services rendered by vessel cannot be treated as ‘royalty‘

Smit Singapore Pte Ltd. Vs DCIT (ITAT Mumbai)

Smit Singapore Pte Ltd. Vs DCIT (ITAT Mumbai) Assessee had received charges on account of time charter services rendered by its vessel ‘Smit Borneo‘ along with the crew to Leighton India Contractor Pvt. Ltd., and not for allowing the latter the ‘use‘ or ‘right to use‘ of industrial, commercial, or scientific equipm...

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HC denies relief to CIT accused of Corruption & causing loss of Rs. 7.26 crores to revenue

S. K. Srivastava Vs Central Bureau Of Investigation And 4 Ors. (Allahabad High Court)

The petition is filed by retired official o quash charges in respect of offences of cheating, criminal conspiracy and Corruption against CIT(A)....

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Method of Accounting Can’t be Rejected u/s 145 Without Examination of Books

VRB Foods Pvt. Ltd. Vs DCIT (ITAT Delhi)

The issue under consideration is whether rejection of method of accounting under section 145 without even examination of books of assessee is justified in law?...

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Section 56(2)(vii)(b) Not Applicable if It Is Not Enacted as on Date of Agreement

ACIT Vs Sri Anala Anjibabu (ITAT Visakhapatnam)

The issue under consideration is whether provisions of section 56(2)(vii)(b)(ii) are applicable on difference between consideration paid for purchase of property and SRO value as on date of agreement?...

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Section 147/148 proceedings on mere investigation wing information was not valid

Hitesh Ashok Vaswani Vs DCIT (ITAT Ahmedabad)

Hitesh Ashok Vaswani Vs DCIT (ITAT Ahmedabad) In the present case the search information received from the investigation wing was used to form the reason to believe by the AO but without applying the mind. Thus the reasons were merely recorded on the borrowed satisfaction by the AO. The source for all the conclusions was […]...

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Secondary & higher education cess deductible as business expenditure

Aptean India Pvt. Ltd. Vs DCIT (ITAT Bangalore)

Aptean India Pvt. Ltd. Vs DCIT (ITAT Bangalore) Assessee submitted that’s education says and secondary and higher education cess has been duly discharged by assessee while computing tax liability under normal provisions of income tax act. Placing reliance on following decisions Ld.AR submitted that ‘cess’ is deductible as business e...

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Income Tax Relief for home buyers & Real Estate Developers

In a recent press conference conducted by the Hon’ble Finance Minister Ms. Nirmala Sitharaman on 12th November 2020 followed by a press release dated 13th November 2020, Diwali gift for the real estate developers and home buyers was announced in the form of income tax relief where a new amendment was proposed in section 43CA […]...

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Valid issuance of notice u/s 143(2) mandatory for framing scrutiny assessment

Balaji Enterprise Vs ACIT (ITAT Guwahati)

Balaji Enterprise Vs ACIT (ITAT Guwahati) The case of the assessee was reopened u/s 148 by the ACIT, Investigation, Delhi, on the basis of CBI search. When the question of jurisdiction came before the Hon’ble High Court, it was held that where the assessee shifts his residence etc., the AO of the place where the […]...

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PPT on Benami Transactions

Benami Transactions One should not enter into any benami transaction as its consequences are severe and unescapable. Please find attached herewith insights on the Prohibition of Benami Property Transactions Act, 1988. Benami property means any property which is the subject matter of a benami transaction and also includes the proceeds f...

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ITAT upheld Penalty u/s 271AAB(1) on Undisclosed Investment

Pawan Mundra Vs DCIT (ITAT Jaipur)

Pawan Mundra Vs DCIT (ITAT Jaipur) The issue under consideration whether AO is justified levying penalty under section 271AAB on failure to offer explanation about the source of the undisclosed investment in land? ITAT states that during course of post search proceedings, assessee admitted an income of Rs. 6,00,000 on account of undisclos...

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Land owner can claim Section 80-IB(10) despite no expense on Housing Project

CIT Vs Astoria Leathers (Madras High Court)

The issue under consideration is whether Tribunal was correct and justified in directing the AO to allow deduction under section 80-IB(10) to assessee land owner when it had not incurred any expenses towards development or construction of the housing project?...

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ITAT explains Tax on Payments received by retired partner

Dr. Vithal V. Kamat Vs JCIT (ITAT Mumbai)

Hon’ble Supreme Court in the case of CIT v. Tribhuvandas G. Patel (supra) has held that any amount paid to the partner upon his retirement towards his share in assets is not a transfer within the meaning of section 47(ii) of the Act and not liable to capital gain....

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ICAI Submits Pre-Budget Memoranda-2021 on Direct & International Tax

The Council of the Institute of Chartered Accountants of India considers it a privilege to submit this Pre-Budget Memorandum - 2021 on Direct Taxes and International Tax to the Government. The memorandum contains suggestions for the consideration of the Government while formulating the tax proposals for the year 2021-22....

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Equalisation Levy- An Overview

Equalization levy was introduced by the Finance Act,2016 on certain non resident companies and related activities. The levy was applied @6% on certain 'specified services' such as online advertisement, any provision for digital advertising space or any other facility or services for the purpose of online advertisement if the aggregate amo...

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Buying your dream home becomes cheaper this Diwali!

As a part of the AatmaNirbhar Bharat Package 3.0, announced on 12th November 2020 our Hon. Finance Minister Smt. Nirmala Sitharaman – a relief has been provided to real estate developers and buyers, by increasing the percentage of safe harbor to 20%. One can now buy a house at a rate of 20% lower than the circle rate. This new norm is f...

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Declaration & Tax Treatment of Interim Dividend

As per Section- 2(35) ‘dividend includes interim dividend’ signifies that the provisions of Companies Act 2013, applicable to the final dividend to the extent possible, shall also applicable on interim dividend. As the word “interim” means “relating to less than a full year’s business activity” so the dividend de...

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Thank You FM for the Income Tax Relief to Real Estate Sector BUT enlargement of scope of Relief is necessary

On the occasion of Dhanteras, FM has announced an Atmanirbhar Bharat Package 3 for over Rs. 2.65 lakh crores. A Demand Booster has been announced for the Real Estate Sector by giving Tax relief for the Developers & Home Buyers under the Income Tax Act....

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To acquire section 153C Jurisdiction, Documents Seized must be Incriminating

ACIT Vs Realtech Construction Pvt. Ltd. (ITAT Delhi)

The issue under consideration is whether to acquire jurisdiction under section 153C is it require that the seized documents must be incriminating and must relate to the assessment year whose assessment were sought to be reopened?...

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Interest disallowance Justified if Commercial Expediency not established

DCIT Vs Alok Industries Limited (ITAT Mumbai)

DCIT Vs Alok Industries Limited (ITAT Mumbai) Issue raised is with respect to disallowance under Section 36(1)(iii) of the Act. The Revenue contends that assessee did not have adequate interest free funds, and that assessee could not establish commercial expediency. The disallowance in this regard has been done on the same reasoning as in...

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Section 54F deduction cannot be denied for subsequent letting of property for commercial use

CIT Vs Ramesh Shroff (Madras High Court)

The issue under consideration is whether deduction u/s 54F can be denied for the reason that assessee had later on let out new property for commercial purpose to run restaurant?...

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Works of Supply of Water, Disposal of Sewerage Considered as Charitable Activities & Eligible for Exemption u/s 11

PCIT (Exemptions) Vs Surat Urban Development Authority (SUDA) (Gujarat High Court)

The issue under consideration the activity of preparation of development plans and to execute works in connection with supply of water, disposal of sewerage and provisions of other services is considered as “charitable activities” and eligible for exemption u/s 11?...

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Depreciation on Imported Software Not Considered as Royalty & Not Liable for Disallowance u/s 40(a)(ia)

Wifi Networks Pvt. Ltd Vs DCIT (ITAT Bangalore)

The issue under consideration is whether depreciation on ‘imported software’ will be considered as royalty and liable for disallowance under section 40(a)(ia) for want of TDS?...

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Section 80IA(4) deduction eligible on developing / providing Lift Irrigation Scheme/ Lift Water Supply Scheme

Unipro Techno Infrastructure Private Ltd Vs DCIT (ITAT Chandigarh)

Unipro Techno Infrastructure Private Ltd Vs DCIT (ITAT Chandigarh) The brief facts relating to the issue are that the assessee is primarily engaged in developing / providing Lift Irrigation Scheme/ Lift Water Supply Scheme for different state governments. The assessee claims that the said development work carried out by the assessee falls...

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Delete TP adjustment by way of royalty Against Himalaya Drug Company- ITAT Directs AO

The Himalaya Drug Company Vs ACIT (ITAT Bangalore)

Himalaya Drug Company Vs ACIT (ITAT Bangalore) We noticed that the assessee has exported finished goods to its AEs located in various Countries and the AEs have only marketed the goods. Since the finished goods exported by the assessee are drugs and beauty care items, the assessee was required to comply with the requirement of […]...

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Section 12A exemption cannot be denied without considering merits of the case

Thanthi Trust Vs DIT (Madras High Court)

Thanthi Trust Vs DIT (Madras High Court) Whether the Tribunal was right holding that the appellant trust is not eligible for exemption under Section 12A of the Income Tax Act, 1961 without considering the merits of the case in a proper manner? In the case on hand, there is no allegation that the assessee Trust […]...

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Stamp duty, registration charges on Transfer of Capital Assets Allowable

DCIT Vs B. E. Billimoria & Co. Ltd. (ITAT Mumbai)

DCIT Vs B. E. Billimoria & Co. Ltd. (ITAT Mumbai) The material on record would show that the assessee being resident corporate assessee was assessed for the year under consideration u/s. 143(3) on 27/10/2017. During assessment proceedings, it transpired that the assessee sold an office premises vide agreement dated 31/03/2015 for a co...

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Remove your confusions regarding ‘New Income Tax Regime’

You all know that a ‘New Tax Regime’ has been introduced from FY 2020-21 that says individual can reduce their taxes if they are not availing deductions or exemptions. You are provided an option where you can either go for the old tax structure or choose the new tax structure. Now the people are confused […]...

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Income tax on Selling gold

Income Tax Act of India specifies that profit from sale of gold bars, jewelry, coins or utensils or any other form of precious metal will attract tax under capital gains. The profit on sale of your gold holding is taxable under the head “Capital Gains” of Income Tax. Only exception to this is in case […]...

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Assessee can be asked to prove Source of Credits but Not Source of Source

Lalchand P. Dhariwal Vs ITO (ITAT Surat)

The issue under consideration is whether the addition made u/s 68 against unexplained creditors will be sustainable in law? Assessee Can Asked to Prove the Source of Credits in his Books of Accounts but Not Source of Source....

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Metal Purchases from grey market- ITAT upheld 12.5% Addition

ITO Vs Gautam B. Bafna (ITAT Mumbai)

ITO Vs Gautam B. Bafna (ITAT Mumbai) In the instant case, the corresponding sales made out of disputed purchases were not doubted by the Ld. AO before us. No contrary evidence to this effect was also produced by the Ld. DR before us. It is not in the dispute that the assesee had indeed made […]...

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No capital gain tax in absence of transfer of shares

ACIT Vs Safari Mercantile Pvt. Ltd. (ITAT Mumbai)

ACIT Vs Safari Mercantile Pvt. Ltd. (ITAT Mumbai) Conclusion: Where there was no transfer of shares but only a pledge of shares for purposes of obtaining a loan and revenue not disputed the fact of return of loan and also receipt of pledged shares creditor, no capital gain could be charged. Only income was actually […]...

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In absence of enduring nature Product development expenses are revenue expense

ACIT Vs Setco Automobiles (ITAT Ahmedabad)

ACIT Vs Setco Automobiles (ITAT Ahmedabad) In the present case, the issue is about allowability of product development expenses which were held by A.O. be a capital in nature. We find that ld. CIT(A) while deciding the appeal for A.Y. 2002-03 and following it has given a finding that due to incurring of product development […]...

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Subsidy cannot be treated as a payment to meet any portion of actual cost of Capital Asset

ACIT Vs Inox Air Products Private Limited (ITAT Pune)

ACIT Vs Inox Air Products Private Limited (ITAT Pune) The only issue raised in the assessee’s appeal is against  the direction of the ld. CIT(A) for reducing the amount of subsidy from the value of assets for the purpose of granting depreciation. From Explanation 10 to section 43(1) of the Act it is immensely clear […]...

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How to file Income Tax Return of Deceased Person???

Many times we face to this question and find difficulty as to how to file income tax return of deceased person. As such the death of the person is not certain, the income earned by person who has expired can still be subject to taxes. According to the section 159 of the Income Tax Act, […]...

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Posted Under: Income Tax |

Representation to FM to Widen Scope of Benefit of 20% for flats

Representation for widening the scope of benefit in case of difference in agreement price and Circle Rate of property is upto 20 per cent for the purpose of Income tax. ...

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Income Tax relief for Real-estate Developers and Home Buyers

Release ID: 1672636 (13/11/2020)

In order to boost demand in the real-estate sector and to enable the real-estate developers to liquidate their unsold inventory at a rate substantially lower than the circle rate and giving benefit to the home buyers, it has been decided to further increase the safe harbour from 10% to 20% under section 43CA of the Act for the period from...

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Finance Ministry seeks Suggestions for Annual Budget 2021-22

Release ID: 1672634 (13/11/2020)

Over the years, the Ministry of Finance has been holding pre-budget consultations in North Block with Industry/Commerce Associations, Trade Bodies and Experts to seek ideas for the Annual Budget. Owing to the pandemic situation, the Ministry has received suggestions from various quarters for holding pre-budget consultations in a differ...

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Tax provisions relating to receipt and forfeiture of earnest money

Introduction The provisions of section 51 of the Income-tax Act deal with advance money received for transfer of a capital asset. As per the old provisions where any capital asset was on any previous occasion the subject of negotiations for its transfer, any advance or other money received and retained by the assessee in respect […...

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Transfer/postings of 643 officers in Grade of CIT

Office Order No. 220 of 2020 (12/11/2020)

F.No. A-22011/6/2020-Ad-VI Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) North Block, New Delhi -110 001 Dated: 12.11.2020 Office Order No. 220 of 2020 Consequent upon diversion of posts of Commissioner of Income Tax (Appeal) to the newly created National Appellate Faceless Centre (NFAC), De...

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Income from Amenities forming Part & Parcel of Building taxable as House Property Income

Nirmala Zaverchand Shah Vs DCIT (ITAT Mumbai) 

The issue under consideration is whether amenities being part and parcel of building will be tax under head 'Income from house property’ or ‘Income from other sources’?...

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Interest expense having nexus with earned interest income allowable

Ravi Mohan Gehi Vs DCIT (ITAT Mumbai)

Ravi Mohan Gehi Vs DCIT (ITAT Mumbai) Conclusion: Assessee was into arranging funds and earned interest income by refinancing to the other parties and the difference in the rates in refinancing was the income of assessee. It was the nature of the business and all the expenditure incurred in earning the income was allowable expenditure. [&...

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Conditions of Rule 18DA(8A) can be Looked into Only by Prescribed Authority & Not by the AO

CIT Vs M/S Quintiles Research (India) Private Limited (Karnataka High Court)

The issue under consideration is whether the Tribunal is right in holding that the conditions of Rule 18DA(8A) can be looked into only by the prescribed authority and not by the Assessing Officer?...

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Container Freight Station Constitutes Inland Port Hence Eligible for Deduction u/s 80IA(4)

PCIT Vs Sanco Trans (Madras High Court)

The issue under consideration whether deduction under section 80IA(4) can be claimed on Container Freight Station (CFS) as it constitutes an ‘inland port’? Container Freight Station Constitutes as Inland Port Hence Eligible for Deduction u/s 80IA(4)....

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Expense on Microsoft EAS licence renewal of AXABS software: ITAT remands case back to CIT(A)

AXA Business Services Pvt. Ltd. Vs DCIT (ITAT Bangalore)

AXA Business Services Pvt. Ltd. Vs DCIT (ITAT Bangalore) We have considered the rival submissions. We find that despite all the details having been filed by the assessee before the CIT(Appeals), the CIT(Appeals) has not considered those submissions with regard to the sum disallowed by the AO, except the sum of Rs.81,52,209 which was incur...

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100% Addition for Bogus Purchase not sustainable if Sales were accepted by AO

ITO Vs Vipul K Sheth (ITAT Mumbai)

ITO Vs Vipul K Sheth (ITAT Mumbai) In the present case the AO has not doubted the sales. The assessee could not establish the genuineness of the transaction to the satisfaction of the AO during assessment proceedings. Hence, from the facts of the case it can be concluded that assessee had made purchases from grey […]...

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New Income Tax relief for Developers & Home Buyers

Income Tax relief for Developers & Home Buyers in Atmanirbhar Bharat Package 3.0 Differential between circle rate and agreement value in real estate income tax under Section 43 CA of IT Act has been increased from 10% to 20%. This is for primary sale of residential units up to ₹ 2 Crore (from date of […]...

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Posted Under: Income Tax |

Should you invest in tax-free bonds?

One of my friends,  who had already decided to invest his retirement savings in such a way so that he does not have to pay any tax after his retirement and so wanted to invest in tax free bonds,  had called me to know about the tax-free bonds available. I discussed the matter threadbare with […]...

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Posted Under: Income Tax |

A Practical Approach to TDS & TCS (Amended upto 31.10.2020)

About The Author Born in a humble middle-class family in Jalandhar (Punjab) in 1962, Ravinder, an avid academic turned every obstacle into opportunity through sheer hard work, graduated in Bachelors of Commerce from DAV College, Jalandhar. After graduation he stepped into nonetheless a rigorous course of accountancy from Institute of Char...

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First Tax Audit Report or Income Tax Return or both by same due date

In this article, the author highlights the issues faced by Tax Auditor and Assessee with respect to furnishing of Tax Audit Report one month prior to submission of Income Tax Return:...

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Posted Under: Income Tax |

Deductions under Income Tax Act

There are different investments & expenditures which can be claimed as deduction while computing Total Income. Chapter VIA of the Income Tax Act 'Deductions to be made in computing Total Income' should must be referred before claiming any amount in Income Tax Return to ensure that the conditions mentioned therein are followed....

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Posted Under: Income Tax |

Undisclosed income of more than Rs. 500 crore unearthed

Release ID: 1672235 (12/11/2020)

The Income Tax Department conducted searches on 10/11/2020 in the case of a leading wholesale bullion and Gold Jewellery dealer doing business from Chennai. The search operation was carried out at 32 premises located in Chennai, Mumbai, Kolkata, Coimbatore, Salem, Trichy, Madurai and Tirunelveli....

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Deduction Claimed as R&D Expense For Development on Mechanism to Produce Customised Products Allowed

Harsha Engineers Ltd. Vs DCIT (ITAT Ahmedabad)

The issue under consideration is whether deduction can be claimed under Research and Development (R&D) for Amount incurred towards development on a mechanism to produce customised products?...

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Income From Land Sale by Assessee Engaged in Property Development Taxable as Business Income

Ashok Kumar Chouta Vs DCIT (ITATBangalore)

The issue under consideration is whether land sold by assessee engaged in property development taxable as capital gains or business income?...

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Sale of Agricultural Land after Conversion is Taxable as Capital Gain

Ramesh Raj Bohra Vs DCIT (ITAT Jodhpur)

The issue under consideration is whether sale of agricultural land after conversion taxing under capital gain or under business income? ITAT direct the A.O. to treat the property on sale of land as capital gains and given the benefit of exemption claimed by the assessee U/s 54F of the Act....

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Latest Income Tax News

Income tax is the part of your income which you are required to pay to the Indian government for funding various infrastructural developments, pay salaries to those who are employed by the central or the state governments, etc. All the taxes which are imposed are based on law, and the law which governs provisions about taxes on income is the Income Tax Act, 1961.

Income tax needs to be paid by each and every individual, Hindu Undivided Family, Association of Persons, Body of Individuals, companies, corporate firms, local authorities and every artificial juridical person generating any income based on the income tax slab rates.

Income tax might seem to be a tedious tax for most us, and it has a lot to do with the fact it involves a lot of nitty-gritty and details while calculating and in paying income tax. However, if you need a clear picture about income tax which is simple and easy to understand then you are at the right place.
Get all the latest news on income tax with Taxguru. We will offer you all the insight and details about all the updates and trending news on income tax. Get a comprehensive coverage of income tax-related news and regular updates on income tax circulars.

At Taxguru, we give a cohesive understanding off all income tax related circulars. We keep updating all the circulars as and when issued by the income tax department. You could view online or you can download all the latest news on Income Tax and circulars free of cost.

Find all the latest developments and amendments to the Income Tax Act. Get to know all the tips and tricks on how to save income tax and develop your own income tax planning work plan. We keep updating our portal regularly so that you don’t miss out on anything.

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