Yes, as per section 64(1)(iv) of the Income-tax Act, 1961 If an Individual transfers any asset to his/her spouse without adequate consideration; then the income from such asset would be clubbed with the income of the individual who has transferred the asset. Therefore, the rental income will be taxable in the hands of the husband.… (read more)

The terms of the lease agreement will have to be read to understand whether the same would constitute an operational lease or a financial lease. Whether the property is ready to use or modifications would be carried out? Would the property be transferred to the lessee at the end of the lease period or not.… (read more)

Section 270AA of the Income-tax Act, 1961 provides taxpayers with immunity from imposition of penalty under section 270A of the Act. However, Section 270AA (3) of the Act takes into its account penalty on account of `Under-reported Income and not mis-reporting of income. The cases of misreporting of income referred to in sub-section (8) shall… (read more)

As per proviso to section 143(2) of the Income tax Act, 1961, no notice under this sub-section shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished. Since the return is filed on September 30, 2015; scrutiny can be initiated… (read more)

Recently, the Hon’ble ITAT Kolkata Bench in the case of Divine Light Finance Ltd. v. ITO ITA No.1591/Kol/2019 dated February 19, 2020 quashed assessment framed by Ld. AO who had no territorial jurisdiction as per postal pin code. Therefore, the additional ground to quash the Order should be raised before the NFAC, if not already… (read more)

From our understanding of the question, The provisional attachment under section 281B of the Income-tax Act, 1961 can only operate during the assessment proceedings. In the given case, assessment is complete and the assessee is in appeal. Therefore, provisional attachment cannot operate in the given factual matrix. Reliance is placed on the decision of the… (read more)

The Finance Act, 2017 amended section 11 of the Income-tax Act, 1961 (Act) with effect from the A.Y. 2018-19 by adding explanation 2 to section 11(1) of the Act stating that any contribution by a charitable or religious trust or institution to any other trust or institution registered under section 12AA of the Act, with… (read more)

The General Circular No. 21/2014 of MCA dated June 18, 2014 clarifies that Contribution to Corpus of a Trust/ Society/ Section 8 companies etc. will qualify as CSR expenditure as long as : (a) the Trust/ Society/ Section 8 company etc. is created exclusively for undertaking CSR activities or (b) where the corpus is created… (read more)

The taxability of the wavier of loans in the case of a private limited company waiving a loan given to another private company with regards to Section 56(2)(x) would be based upon the commercial and other terms in the agreement for the loan given. Section 56(x)(a) is applicable when a person receives money without consideration.… (read more)