In PCIT v. Kanak Impex (India) Ltd, the Bombay High Court has held that the assessee failed to prove the genuineness of purchases and merely provided details of sundry debtors and creditors in the original assessment which did not absolve them from proving the purchases during reassessment. It was also held The Court held that… (read more)

If you are opting for Section 44AD, all business expenses (including salaries, rent, interest, etc.) are deemed to be accounted for in the presumptive income rate (8% or 6%). No separate deductions are permissible, regardless of whether payments are made to relatives or third parties. (read more)

As the trust registered under Section 12A has failed to file its return by the due date for A.Y. 2018-19, the exemptions under Sections 11 and 12 will not be available as per Section 12A(1)(ba). The Net income (gross receipts minus allowable revenue expenses) will be taxable as an AOP. Deductions for expenses are allowed… (read more)

If no director is available in India, a person in India holding a valid power of attorney from the company can sign. This could be an employee, officer, or professional. A professional or a regular employee can act as authorized representative. (read more)

Section 269ST prohibits any person from receiving an amount of Rs. 2 lakh or more in cash from a person in a day or for a single transaction multiple days or for an event or occasion. This will apply to sellers also. I am not aware of any case law on the point. (read more)

If an appeal is not filed against the protective assessment, it becomes final and the tax demand is enforceable. However, depending on the status of the substantive assessment, it can be argued that the demand should be dropped as there will be double assessment. Section 263 can apply to protective assessments if the order is… (read more)

It will depend on the nature of the contract. If the customer has reserved space and control of ingress and egress, it will attract Section 194I (Rent) as the slot charges are for the use of space. The rate is 2% if the payment is for equipment (e.g., leasing containers) and 10% if it is… (read more)

The doctor should declare gross receipts of ₹25 lakhs for ITR purposes. Declaring ₹20 lakhs would be incorrect, as personal expenses (₹5 lakhs) cannot be deducted from gross receipts, and under-reporting could lead to penalties. Given no records of professional expenses are maintained, the doctor can opt for Section 44ADA, declaring ₹12.5 lakhs (50% of… (read more)

The only solution if there is an impasse with the landlord is for the tenants to approach Court. Pagdi tenants do not have much rights and cannot dictate terms of redevelopment but if the building is unsafe as per the BMC's structural audit, tenants can be permitted to carry out repairs or redevelopment. (read more)

No, If the cost is zero, there is no indexation available. If the asset is acquired prior to 1st April 2001 and the FMV is substituted for the cost, indexation is available. (read more)