Amount received on sale of ESOPS will be taxed under the head ‘Capital Gains’. If the unlisted shares are held for more than 24 months from the date of allotment of shares, it will be taxed as long-term capital gain (along with benefit of indexation) and if sold within 24 months from the date of… (read more)

According to section 278AA of the Act, Prosecution is not to be initiated where there is a reasonable cause for failure in depositing TDS. The assessee will have to demonstrate a reasonable cause. (read more)

Whether the assessee had already commenced business or was pre-operational, as we understand in the case of Tuticorin Alkali Chemicals & Fertilizers Ltd v. CIT ( 1997) 227 ITR 172 (SC) was an issue of capitalization of borrowing cost during the pre-operational period. Refer , CIT v. Bakaro Steel (1999) 236 ITR 315 ( SC),… (read more)

The assessee may make an application under section 270AA of the Act for waiver of penalty. (read more)

File an appeal before Appellate Tribunal . (read more)

It may be contested that as there were diverging views from different High Courts (Also check the position of the Jurisdictional High Court), the issue being a debatable one, a penalty cannot be imposed. (read more)

The issue being debatable and all particulars are furnished . If detailed explanation is furnished with supporting case laws the Assessing Officer may drop the penalty proceedings . Assuming the Assessing Officer levies the penalty , the assessee may succeed in appeal . In PCIT v. Modipon Ltd. (2018) 100 taxmann.com 57 / 259 Taxman… (read more)

The action of the Assessing Officer is not justified . The assessee has to offer proper explanation . In CIT v. Ratanlal Vyaparilal Jain (2011) 199 Taxman 90 / 339 ITR 351 / (2010) 235 CTR 568 / 45 DTR 290 (Guj.)(High Court) the court held that the CBDT circular had been issued for the… (read more)

Amount received on sale of ESOPS will be taxed under the head ‘Capital Gains’. If the unlisted shares are held for more than 24 months from the date of allotment of shares, it will be taxed as long-term capital gain (along with benefit of indexation) and if sold within 24 months from the date of… (read more)