Company Law : Step-loans can unintentionally violate Section 185 by creating indirect loans to directors. Companies often overlook how layered t...
Company Law : Section 185 of Companies Act, 2013 goes beyond just regulating loans to directors—it encompasses a broader spectrum of transacti...
Company Law : "Learn about the prohibitions and restrictions under Section 185 of the Companies Act, 2013, regarding loans to directors, relativ...
Company Law : Among the provisions outlined in the act, Section 185 has garnered substantial attention due to its impact on loans and advances t...
Company Law : Explore Section 185 of the Companies Act, 2013, its exemptions, and practical examples. Learn when Section 185 is not applicable, ...
Income Tax : ITAT Delhi held that the PCIT exceeded jurisdiction by introducing issues not mentioned in the Section 263 show-cause notice. The ...
Income Tax : The ITAT Delhi held that undisclosed income declared under IDS-2016 but unpaid within prescribed time must be taxed in the year of...
Income Tax : The dispute concerned cancellation of IDS benefits due to non-payment. The Tribunal held that once IDS lapses, undisclosed income ...
Income Tax : The ITAT Mumbai deleted Rs. 10.84 crore addition made under Section 68, ruling that the assessee had properly documented loans and...
Corporate Law : Bombay High Court quashed reassessment proceedings initiated using data from a valid IDS declaration, holding that once accepted u...
Company Law : The issue has been examined and it is hereby clarified that loans and/or advances made by the companies to their employees, other ...
ITAT Delhi held that the PCIT exceeded jurisdiction by introducing issues not mentioned in the Section 263 show-cause notice. The revision order was quashed for travelling beyond the scope of the proceedings.
The ITAT Delhi held that undisclosed income declared under IDS-2016 but unpaid within prescribed time must be taxed in the year of declaration, not the original assessment year. The reassessment addition for AY 2013-14 was deleted.
Step-loans can unintentionally violate Section 185 by creating indirect loans to directors. Companies often overlook how layered transactions breach legal provisions. The key takeaway is to review fund flow and ensure ultimate beneficiaries are compliant.
The dispute concerned cancellation of IDS benefits due to non-payment. The Tribunal held that once IDS lapses, undisclosed income is taxable with mandatory penalty.
The ITAT Mumbai deleted Rs. 10.84 crore addition made under Section 68, ruling that the assessee had properly documented loans and repayments. Key takeaway: Genuineness of transactions with third-party entities can neutralize claims of unexplained credits.
Bombay High Court quashed reassessment proceedings initiated using data from a valid IDS declaration, holding that once accepted under the Income Disclosure Scheme, the Revenue cannot revisit or reassess the same income.
Section 185 of Companies Act, 2013 goes beyond just regulating loans to directors—it encompasses a broader spectrum of transactions involving individuals and entities connected to them.
Calcutta High Court ruling states payments by supervisors to individual labourers, each not exceeding Rs. 20,000, cannot be disallowed under Section 40A(3) of the Income Tax Act.
“Learn about the prohibitions and restrictions under Section 185 of the Companies Act, 2013, regarding loans to directors, relatives, and subsidiaries.
ITAT Mumbai held that addition of notional interest on advances to related parties (i.e. the directors and sister concern/related parties) unsustainable as the assessee has been able to substantiate availability of sufficient interest free funds.
