Ans. : It seems the reason given by the Assessing Officer is correct, as the Assessee is filling Return of income under presumptive taxation i.e. u/s.44AD i.e. 8% of the total turnover. If the amount is credited in Bank which is more than the turnover the recording of reasons may be correct . If the… (read more)

As we understand, The Assessee will have the liberty to file Form 10 belatedly and be entitled to statutory benefit. it is incumbent upon concerned authority to examine admissibility of benefit than to foreclose assessee on technicalities. This has been upheld by the Hon’ble Madras High Court in the case of Chandraprabhuji Maharaj Jain v.… (read more)

Based on our understanding of the question, Assuming the assessee is engaged in business and not in profession. Tax Audit is applicable if total sales, turnover or gross receipt from business during the previous year exceeds Rs. 1 crore. (read more)

You may file appeal against the Assessment order. If the addition is deleted then penalty will also be deleted. Note : The assessee should produce evidence before the Appellate Authorities in the form of confirmation , photographs , and may also file Affidavit in the Appellate proceedings by making application for admitting the additional evidence… (read more)

Yes unequal Partition is permissible. Kindly refer CGT v N.S. Getti Chettiar (1971) 82 ITR 599 (SC). Member may accept a smaller/larger share on partition or he may renounce his right fully. But Income Tax Department has no right to avoid partition on the ground of inequality. [M.S.M. Meyappa Chettiar v. CIT 18 ITR 586… (read more)

Though many companies are indeed referred to the NCLT under IBC and at times declared bankrupt, the question as to whether the cost of shares can be treated as a capital loss is not a question that can be generally answered without a keen appreciation of the facts in each case and without seeing the… (read more)

Under the provisions of Section 263, the Pr. CIT may call for or examined the record of any proceedings done under the Income Tax Act. (Here proceedings u/s.153A) And if he considered it was prejudicial to the interest of the revenue, he may give an opportunity to the Assessee and pass order. In Kusumlata Sonthalia… (read more)

Note : Memorandum explaining the provision states that this amendment will take effect from Ist April , 2021 and will , accordingly , apply in relation to the assessment year 2021 -22 and subsequent assessment years (2021) 430 ITR 214 (st) (243). In the case of CIT vs. Hindustan Organics Chemicals Ltd [2014] 366 ITR… (read more)

The Jurisdiction of the Courts is determined by statute. It has been long held by the courts that in the absence of a statutory provision to the contrary, it is the location of the Assessing officer determines the issue of Jurisdiction as the lis lies with the Assessing officer. In the earlier process of Assessment,… (read more)

If the original Assesssment order which is subject matter of revision does not survive then the proceedings u/s 263 are bad in law. Challenge to ITAT is the appropriate remedy. (read more)