In CIT v. Ghanshyam (HUF) [2009] 315 ITR 1 (SC), the Supreme Court held that interest u/s 28 of the Land Acquisition Act on enhanced compensation is an accretion to the compensation and forms part of it. However, as the Finance Act 2009 introduced s. 56(2)(viii) taxing interest on compensation/enhanced compensation as "Income from Other… (read more)

No. The old flat was a long-term capital asset. There was LTCG on its gain which was set-off by the exemption u/s 54 granted for the construction of the new flat. The new flat is a short-term capital gain and is not entitled to any exemption. (read more)

Yes, a freelance business journalist providing editorial services on a weekly/monthly basis is entitled to compute income under Section 44AD, as journalism is not one of the specified professions under Section 44AA. (read more)

According to the Mumbai ITAT in Tata Sons Pvt. Ltd. v. DCIT (2024) 204 ITD 802 (Mum.)(Trib.), interest under section 244A(1A) is computed with a specific adjustment method, relying on the Supreme Court’s interpretation in CIT v. HEG Ltd. (2010) 324 ITR 331 (SC). The assessee becomes entitled to interest on the unpaid refund (including… (read more)

In my view, surcharge applicability will be based on your total income computed without indexation benefit (i.e., using the higher unindexed LTCG figure). This is because indexation benefit is an option only for computing the tax on the LTCG itself u/s 112 (choosing between 20% with indexation or 12.5% without), not for determining "total income"… (read more)

Treatment appears to be correct because employees of Central Autonomous Bodies (CABs) are non-government employees for the purpose of tax exemption on leave encashment u/s 10(10AA) of the Income Tax Act, 1961. (read more)

You may file a rectification application u/s 154 of the Income Tax Act against the intimation/order u/s 143(1) issued by CPC. You may also file an appeal u/s 246A before CIT(Appeals) against the 143(1) demand within 30 days of the intimation. (read more)

Issue A: The ex-parte rejection cannot be recharacterized as being "on merits". The rejection order of 27th March is explicitly for non-response to a questionnaire. There is no findings on genuineness of activities, objects, or eligibility. The Subsequent grant of s. 80G approval in Oct 2021 itself did not treat the March 2021 rejection as… (read more)

U/s 153(5), where effect is to be given to an order u/s 250 by the AO, wholly or partly, otherwise than by way of making a fresh assessment or reassessment, such effect shall be given within 3 months from the end of the month in which the order is received by the Commissioner. The Commissioner… (read more)

The HUF will not automatically dissolve on death of the Karta because the son will become the new Karta. The "family" will continue even with only one coparcener. The son's own HUF will continue independently. Alternatively, the son can opt for a full partition and dissolve the HUF. Even if the HUF continues, the deceased's… (read more)