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)

Section 43 of the Companies Act, 2013 allows companies to issue equity shares with differential rights as to voting, dividends, or other privileges. So, a company can design an ESOP policy to allocate non-voting equity shares to employees with shorter tenure or lower performance and voting equity shares to high-performing or senior employees. (read more)

According to the judgement of the Bombay High Court in Sarfaraz S. Furniturewalla v. Afshan Sharfali Ashok Kumar, the hardship compensation is not to be considered as revenue receipt and is not liable to be tax, as a result there will be no question of deduction of TDS. from the amount payable by the Developer… (read more)

If the ocean freight payment is to a Non-Resident Shipping Company, no TDS is applicable on export and import of goods. See Section 172 of the Income Tax Act, 1961 and CBDT Circular No. 723 dated 19th September 1995. If the payment is made to a resident shipping company or freight forwarder, TDS is applicable… (read more)

You can file an appeal even after the expiry of the limitation period and request for condonation of the delay. If reasonable cause for the delay is made out, the appeal will be admitted and heard on merits. (read more)

The transaction of receiving Rs. 90 lakhs in cash for the sale of agricultural land violates Section 269SS. It also violates Section 269ST. The assessee is liable for penalty under Section 271D and Section 271DA. It is arguable that only Section 269ST and Section 271DA should be considered as it is a high-value cash transactions.… (read more)