It is not mandatory as shares are movable property and title passes on delivery subject to any conditions in the Articles of Association. (read more)

The order passed by AO2 under Section 148A(d) without issuing a notice under Section 129 or a fresh notice under Section 148A(a)/(b) can be challenged before the High Court as being procedurally flawed and invalid. Alternatively, you can participate in the reassessment proceedings while raising these objections and challenge the assessment order in appeal. (read more)

Leasing gold to your father’s jewelry firm and earning interest is permissible under the Income Tax Act, provided the transaction is genuine, documented, and at arm’s length. The interest (whether in gold or cash) is taxable as "Income from Other Sources". (read more)

Scenario A appears to be risky as it ignores the issue whether the transfer of development rights under the JDA is a taxable transfer. It appears that section 45(5A) was applicable at that stage and the difference between the stamp duty value and the cost of the old property would be assessed in the year… (read more)

As per the judgements of the Supreme Court in CIT v. Dewas Cine Corporation [1968] 68 ITR 240 (SC) and Malabar Fisheries Co. v. CIT [1979] 120 ITR 49 (SC), the distribution of assets by a partnership firm to its partners upon dissolution or reconstitution is a mutual adjustment of rights and not a taxable… (read more)

1. The personal loan has to be disclosed in the ITR-3 Balance Sheet (Schedule BS). ITR-3 requires a complete Balance Sheet for individuals with business or professional income, including all assets and liabilities, whether personal or business-related. 2. As the two businesses are separate, you should maintain separate books of accounts (including Balance Sheet and… (read more)

In my view, the deduction and deposit of TDS does not absolve the company from proving the genuineness of the expenditure under Section 37(1). As the agents are untraceable, the AO may be entitled to disallow on the ground of non-business or fictitious payments. I suggest the payer-company bring on record documentation (such as agent… (read more)

The widow, as a member of the HUF, has a right to maintenance from the HUF’s current assets (including the new capital infused by the eldest son). She is not a coparcener and thus has no automatic share in the HUF assets unless a partition occurs. If the erstwhile Karta distributed the HUF assets amicably… (read more)

There are a number of case laws which hold that under Section 56(2)(x), the Stamp Duty Valuation of immovable property can be challenged post-sale deed registration by claiming that it exceeds the FMV and requesting a referral to a Valuation Officer. See Dulari Devi Pala (ITAT Kolkata, 2020) and Information Technology Park Ltd. (ITAT Bangalore,… (read more)

The question is whether the arrangement between Hospital A and Hospital B is a supply of healthcare services or a manpower supply. In my view, Hospital A facilitates the provision of doctors who deliver exempt healthcare services to patients at Hospital B and the payments (including retention by both hospitals) are part of the healthcare… (read more)