Depreciation under section 32(1)(iia) of the Income-tax Act, 1961 (Act) will not be allowed to an assessee opting for special rate of tax under section 115BAA of the Act. Furthermore, section 115BAA(2)(ii) of the Act clarifies that set off or carry forward of such depreciation will also not be allowed. The said proviso is to… (read more)

It may be desirable to make an application to rectify the mistake to the Designated Authority to accept the VSVS application filed by the Assessee. In case no response is received within a reasonable time the assessee may have to file writ before the High Court (read more)

Where the assessee has obtained an insurance premium for its employees, the same is deductible under section 37 of the Income-tax Act, 1961 (Act). This has been upheld by various High Courts, including the Hon'ble Madras High Court in the case of CIT v. Coimbatore Premier Corpn. (P.) Ltd. [2000] 244 ITR 753 (Madras). As… (read more)

Sir, The Question asked by you cannot be answered routinely based only upon the information provided. If the parties that are disputing the property claims are getting in touch with you, I strongly suggest that you contact a local lawyer who will be able to guide you better based on the papers that you may… (read more)

As per Section 4(2) of VSVA, upon the filing the declaration, any appeal pending before the Commissioner (Appeals) shall be deemed to have been withdrawn from the date on which certificate is issued by the designated authority. After receipt of certificate the assessee may make an application to the CIT (A) enclosing the copy of… (read more)

In Co-Operative Rabobank U. A. v. CIT (IT) (2021)437 ITR 639 / 205 DTR 113/ 322 CTR 257/ ( 2022) 284 Taxman 175 (Bom)(HC) has allowed the writ petition wherein the revenue sought to withdraw the interest paid earlier under section 244A of the Act. The Court also discussed the issue of waiver of interest… (read more)

Sale of agricultural rural land and cash received from the said sale transaction can be deposited in bank. Assessee is able to explain source of said deposits as well as demonstrate said land is rural agricultural land as per the land revenue records and capital assets fall under section 2(14)(iii), addition was not justified under… (read more)

A shareholder selling his share to another shareholder below the Fair Market value will attract section 56(2)(x) of the Income-tax Act, 1961. He would be required to justify his selling price with a valuation report. Valuation under Rule 11UA has to be done as per Net Asset Value (NAV) or Discounted Cash Flow (DCF) Method.… (read more)

The same is a debatable issue, while some argue a day is a span of 24 hours, others consider that a day does not have to be a whole day. However, the assessee must raise this issue in their objection. Reliance should be place on the decision of the Hon’ble Bombay High Court in the… (read more)

In CIT v. Indian Overseas Bank (2021) 207 DTR 202 (Mad) (HC) the Court held that the issue which was not subject matter of reassessment limitation has to be computed from the original assessment . Revision was held to be barred by limitation . Referred CIT v. Alagendran Finance Ltd ( 2007)) 293 ITR 1(SC),… (read more)