Section 55 and the head of capital gains refers to the transfer of a capital asset. An agricultural land is not a capital asset under the scheme of Income-tax Act, 1961. Therefore, FMV of NA on the date of conversion may be taken into consideration, also the period of holding will be considered from the… (read more)

Although the words of the newly introduced section 45(4) of the Income-tax Act, 1961 (Act) does not refer to a situation of dissolution; The Memorandum to the Finance Bill 2021 has clarified that the newly proposed sub-section (4) of section 45 of the Act applies in a case where a specified person who receives during… (read more)

The judgment has to be read in the contest in which it was rendered. When the Supreme Court rendered the judgment in Ghanshyam (HUF) [2009] 315 ITR 1 (SC), there was no provison for taxing the interest on enhanced compensation . The Punjab and Haryana High Court in Mahender Pal Narang v. CBDT [2020] 120… (read more)

As we understand the Dispute Resolution Committee is not yet constituted. (read more)

The Hon’ble Supreme Court in the case of DCIT v. Raghuvir Synthetics Ltd. [2017] 394 ITR 1 (SC) held that Expenditure incurred on public issue of shares was in nature of capital expenditure. Although, in the given case, the assessee has paid fee for private equity, in substance it is a transaction to raise funds… (read more)

The Finance Act 2020 expanded the scope of section 206C of the Income-Tax Act, 1961 (Act) by introducing the provision for collection of tax on sale of goods, with effect from 1 October 2020. The term ‘Goods’ is not defined under section 206C or any other provisions of the Act and therefore, an issue arises… (read more)

As we understand, the term “and other game of any sort” should not be read liberally to take into account this competition. As per the rule of Ejusdem generis used to interpret loosely written statutes. Where a law lists specific classes of persons or things and then refers to them in general, the general statements… (read more)

No since as per S.73(1) speculative loss can be set off only against speculative profit. (read more)

Both compensation and interest awarded thereon is a capital receipt not exigible to tax under the Income Tax act, 1961. Note: In Rupesh Rashmikant Shah. v. UOI (2019) 417 ITR 169/ 182 DTR 203 / 310 CTR 826 / 266 Taxman 474 (Bom.)(HC), the Court held that interest on compensation awarded up to date of… (read more)

Section 44AD and section ADA are special provision start with the provision “ Notwithstanding anything to the contrary ----- therefore special provision will override the general provision . In Maruti Udyog Ltd. v. Ram Lal & Ors. (2005) 2 SCC 638 the Court held that where there is a conflict between the provisions of two… (read more)