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)

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)