The married sisters have no right to claim a share in the HUF as the HUF was partitioned and the assets distributed before the enactment of the Hindu Succession (Amendment) Act, 2005 with effect from September 9, 2005. For the same reason they are non-members and cannot demand details of the HUF. (read more)

We can't overrule the Department asking for proof that the interiors are worth the sum allocated to it in the agreement. If possible, mention all items or at least the major items which cost more than ₹50000. (read more)

It appears Form 4 has not been fully issued yet, as the "awaiting signed Form 4 from CIT" status indicates that the CIT has not finalized or signed the form. The issuance of Form 4 is only considered complete when the signed copy is available on the portal or communicated to you, confirming the full… (read more)

This will be considered to be "misreporting of income" under Section 270A because the AO has made a specific reference to "misreporting" in the operating paragraph. (read more)

It depends on why the AO is making the disallowance of the political donation. If the disallowance is due to missing documentation, mistaken belief in eligibility or for bona fide errors, it is likely to be treated as under-reporting attracting 50% penalty. If the disallowance results from deliberate misrepresentation (e.g., falsified receipt, claiming a non-existent… (read more)

It is not mandatory as shares are movable property and title passes on delivery subject to any conditions in the Articles of Association. (read more)

The order passed by AO2 under Section 148A(d) without issuing a notice under Section 129 or a fresh notice under Section 148A(a)/(b) can be challenged before the High Court as being procedurally flawed and invalid. Alternatively, you can participate in the reassessment proceedings while raising these objections and challenge the assessment order in appeal. (read more)

Leasing gold to your father’s jewelry firm and earning interest is permissible under the Income Tax Act, provided the transaction is genuine, documented, and at arm’s length. The interest (whether in gold or cash) is taxable as "Income from Other Sources". (read more)

Scenario A appears to be risky as it ignores the issue whether the transfer of development rights under the JDA is a taxable transfer. It appears that section 45(5A) was applicable at that stage and the difference between the stamp duty value and the cost of the old property would be assessed in the year… (read more)

As per the judgements of the Supreme Court in CIT v. Dewas Cine Corporation [1968] 68 ITR 240 (SC) and Malabar Fisheries Co. v. CIT [1979] 120 ITR 49 (SC), the distribution of assets by a partnership firm to its partners upon dissolution or reconstitution is a mutual adjustment of rights and not a taxable… (read more)