Answers to queries on legal issues

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Issuing scrutiny notice _ AY 2019-20
Subject: Issuing scrutiny notice _ AY 2019-20
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Asked by: Sameer
Answered by:
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Date: June 13, 2021
Excerpt of answer:
The last day for filing Income tax returns for FY 2019-20 is December 31, 2020 for most of the individual taxpayers. Last date for income tax return filing for taxpayers whose accounts need to be audited is January 31, 2021. As per proviso to section 143(2) of the Income-tax Act, 1961 (Act), no notice under… (read more)
What should be done if the Karta of HUF is alive but becomes incapable of contracting?
Subject: What should be done if the Karta of HUF is alive but becomes incapable of contracting?
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Asked by: Advocate Hegde
Answered by:
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Date: June 12, 2021
Excerpt of answer:
From our limited understanding of facts, it appears that the Karta who is responsible for managing the affairs of the HUF is in a state wherein he is incapable of contracting. The HUF can nominate another member as a Karta. The Hon’ble Supreme Court in the case of Union of India v. Sree Ram AIR… (read more)
GST Regn.-Whether Additional New Activity started is required to be incorporated in GST Regn.
Subject: GST Regn.-Whether Additional New Activity started is required to be incorporated in GST Regn.
Category: 
Asked by: Govind Khandelwal
Answered by:
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Date: June 12, 2021
Excerpt of answer:
Any change in the nature of business in GST will require an amendment application for the same. file the amendment application in the portal with the nature of business tab and choose the HSN & SAC Code for the same. (read more)
Whether amount transferred to Indian Bank account of non-resident, for the dividend payment, whether the company can file Form 15CB?
Subject: Whether amount transferred to Indian Bank account of non-resident, for the dividend payment, whether the company can file Form 15CB?
Category: 
Asked by: Sree Lekha
Answered by:
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Date: June 10, 2021
Excerpt of answer:
Yes, Form 15CB is under Rule 37BB of the Income tax Rules, 1962 (Rules), which deals with Furnishing of information for payment to a non-resident. There is no exemption for any transfer made to Indian Bank. Further the purpose of this Form is to ensure that the provisions of the Double Taxation Avoidance Agreement and… (read more)
Whether gift my maternal grandmother to the grand son is considered as relative and exempt u/s 56 (2)(x) of the Act?
Subject: Whether gift my maternal grandmother to the grand son is considered as relative and exempt u/s 56 (2)(x) of the Act?
Category: 
Asked by: Sree Lekha
Answered by:
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Date: June 10, 2021
Excerpt of answer:
Proviso to Section 56 (2)(x) of the Income-tax Act, 1961 (Act) specifies that the said clause shall not apply to any sum of money or property received from any relative. Further, explanation to the said proviso states that the expressions, “relative" shall have the same meanings as respectively assigned in the Explanation to section 56(2)(vii)… (read more)
During the assessment proceeding U/s 153C whether the A.O can make enquiries relating to the issues other than issues covered by the reason recorded for issuance of notice u/s 153C of Income Tax Act.
Subject: During the assessment proceeding U/s 153C whether the A.O can make enquiries relating to the issues other than issues covered by the reason recorded for issuance of notice u/s 153C of Income Tax Act.
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Asked by: MOHAMED ALI, Tax practitioner
Answered by:
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Date: June 9, 2021
Excerpt of answer:
In PCIT.v. S.R.Trust (2021) 123 taxmann.com 311 / 277 Taxmann.com 133 (Mad)(HC) following the ratio in CIT v. Sinhagad Technical Education Society (2017) 397 ITR 344/156 DTR 161/297 CTR 441/250 Taxman 225 (SC) court held that in absence of any incriminating documents or evidence discovered against assessee, during its search upon the third Party, jurisdiction… (read more)
When a transporter having more than 100 Cr of Turnover purchases Diesel from Indian Oil Corporation Ltd and receives Petro Cards of the same amount is he liable to deduct tax at source u/s 194Q of the Act ?
Subject: When a transporter having more than 100 Cr of Turnover purchases Diesel from Indian Oil Corporation Ltd and receives Petro Cards of the same amount is he liable to deduct tax at source u/s 194Q of the Act ?
Category: 
Asked by: P.N.Shangari
Answered by:
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Date: June 7, 2021
Excerpt of answer:
One has to study the term of contract when a card is purchased and the bill issued by Indian Oil Corporation Ltd . The threshold limit would apply in case of every vendor separately . Vendor includes all its branches. Aggregate value of al goods purchased from single vendor should be considered for the purpose… (read more)
Can a son claim deduction u/s 24(b) , if he is not the co-owner of the property ?
Subject: Can a son claim deduction u/s 24(b) , if he is not the co-owner of the property ?
Category: 
Asked by: Parakh
Answered by:
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Date: June 6, 2021
Excerpt of answer:
Section 24(b) refers, where the property has been acquired , constructed , repaired etc , interest can be claimed as deduction . On the facts the querist has not acquired the property it is acquired by mother hence the querist is not entitle to claim deduction u/s 24 (b) of the Act . (read more)
Presumptive Income under section 44AD of the Income tax Act 1961 how many years the assessee can continue ?
Subject: Presumptive Income under section 44AD of the Income tax Act 1961 how many years the assessee can continue ?
Category: 
Asked by: Rahul Pathak
Answered by:
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Date: June 6, 2021
Excerpt of answer:
As per the explanatory notes to the Provisions of the Finance Act, 2016, where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five consecutive assessment years relevant to the previous year succeeding such previous year not in accordance… (read more)
Whether the assessee is liable to deduct tax at source on reimbursement of expenses ?
Subject: Whether the assessee is liable to deduct tax at source on reimbursement of expenses ?
Category: 
Asked by: CA Daleep Bhatia
Answered by:
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Date: June 5, 2021
Excerpt of answer:
It would be pertinent to gather a better understanding of the contract, the nature of services, location of services, expertise of the employees, nature of payment. Note : In PCIT v. Manugraph India (P) Ltd. (2019) 267 Taxman 437 (Bom.) (HC) , held that If the payment is in the nature of actual reimbursement, there… (read more)