Answers to queries on legal issues
| Additions in the income based on documents received from third party | |
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| Subject: | Additions in the income based on documents received from third party |
| Category: | Income-Tax |
| Asked by: | Advocate satish kumar solanki |
| Answered by: | Law Intern |
| Tags: | Assessment, natural justice |
| Date: | September 29, 2025 |
| Excerpt of answer: |
No. Under the principles of natural justice, all material or evidence relied upon by the tax authorities must be disclosed to the assessee and he must be given opportunity to rebut or explain it. In Kishinchand Chellaram v. CIT [1980) 125 ITR 713 (SC), the Supreme Court held that non-disclosure of evidence to the assessee… (read more)
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| Urgent – Query on gifted flat and redevelopment thereof | |
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| Subject: | Urgent – Query on gifted flat and redevelopment thereof |
| Category: | Income-Tax |
| Asked by: | Rayannsh Chauhan |
| Answered by: | Law Intern |
| Tags: | Capital Gains, redevelopment |
| Date: | September 29, 2025 |
| Excerpt of answer: |
There is no need to defer the registration date as the property is held by you for more than 24 months and constitutes a long-term capital asset. The gains will be exempt u/s 54. As regards the additional purchased portion of 23 sq ft, it is a fresh purchase from the developer and Section 45(5A)… (read more)
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| Redevelopment and PAAA registration from LTCG perspective | |
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| Subject: | Redevelopment and PAAA registration from LTCG perspective |
| Category: | Income-Tax |
| Asked by: | Komal |
| Answered by: | Law Intern |
| Tags: | Capital Gains, redevelopment |
| Date: | September 29, 2025 |
| Excerpt of answer: |
The purchase of the extra 23 sq ft does not trigger a separate capital gains event. Even without the purchase, there is a "transfer" u/s 45(5A) and short-term capital gains are taxable. However, deferral to February 2026 is desirable because this would make the original flat a long-term capital asset and qualify the gain for… (read more)
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| Income taxable under Section 44AD or 44ADA | |
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| Subject: | Income taxable under Section 44AD or 44ADA |
| Category: | Income-Tax |
| Asked by: | Rajeev JHa |
| Answered by: | Law Intern |
| Tags: | Presumptive taxation, Section 44AD, Section 44ADA |
| Date: | September 29, 2025 |
| Excerpt of answer: |
Recruitment and placement is not a "specified profession" under Section 44AA(1). Therefore, presumptive taxation at 50% of receipts under 44ADA is not available. Section 44AD will apply except if the businesses involves agency business, commission, brokerage etc. (read more)
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| capital gain on sale of Agricultural land | |
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| Subject: | capital gain on sale of Agricultural land |
| Category: | Income-Tax |
| Asked by: | bks |
| Answered by: | Law Intern |
| Tags: | Capital Gains, Sale of Agricultural land |
| Date: | September 29, 2025 |
| Excerpt of answer: |
If all the conditions of s. 2(14)(iii) are satisfied, the capital gain would not be taxable. The fact that income from agricultural activity is not shown should not be a bar. The principle laid down by the Bombay High Court in The Commissioner Of Income Tax-Iii ... vs Smt. Maltibai R. Kadu and CBDT Circular… (read more)
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| 153C vs 148 | |
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| Subject: | 153C vs 148 |
| Category: | Income-Tax |
| Asked by: | bks |
| Answered by: | Law Intern |
| Tags: | incriminating material, search assessment |
| Date: | September 29, 2025 |
| Excerpt of answer: |
As the search on A has yielded materials on B's supplies to C, Section 153C must be invoked instead of Section 148. (read more)
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| unverifiable purchases | |
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| Subject: | unverifiable purchases |
| Category: | Income-Tax |
| Asked by: | bks |
| Answered by: | Law Intern |
| Tags: | Bogus Purchases |
| Date: | September 21, 2025 |
| Excerpt of answer: |
PCIT v. Kanak Impex (India) Ltd (2025) 474 ITR 175 has been distinguished in ACIT v. Dhiraj Parbat Gothi (Mum)(Trib), J. Kumar Infraprojects Ltd. v. DCIT (Mum) (Trib), Palmon Impex Pvt. Ltd. v. ITO (Mum)(Trib), ITO v. Pradeep Kumar Agarwal (Jaipur)(Trib) and Quality Heightcon Pvt. Ltd. v. DCIT(Mum)(Trib) (read more)
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| Refund Adjusted Against Non-Existent Demand Despite Settlement Under DTVsV | |
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| Subject: | Refund Adjusted Against Non-Existent Demand Despite Settlement Under DTVsV |
| Category: | Income-Tax |
| Asked by: | Vishnu |
| Answered by: | Law Intern |
| Tags: | Direct Tax Vivad Se Vishvas Scheme. |
| Date: | September 21, 2025 |
| Excerpt of answer: |
It is an unfortunate situation. A number of other taxpayers have raised similar grievances. I suggest you file a detailed petition with CPGRAMS. If that doesn't work, you may consider filing a Writ Petition in the High Court. (read more)
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| regarding gift of self acquired property | |
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| Subject: | regarding gift of self acquired property |
| Category: | Allied Law |
| Asked by: | k.S.Nehra |
| Answered by: | Law Intern |
| Tags: | immovable property gifted to a relative |
| Date: | September 21, 2025 |
| Excerpt of answer: |
Self-acquired property can be disposed off at the will of the owner, including by giving a gift. Sections 122 to 129 of the Transfer of Property Act deal with gifts. Immovable properties like the commercial shop will require a registered deed and also payment of stamp duty. (read more)
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| Notice u/s 143(2) in case of order u/s 263 rws 143(3) | |
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| Subject: | Notice u/s 143(2) in case of order u/s 263 rws 143(3) |
| Category: | Income-Tax |
| Asked by: | Pawan Singla |
| Answered by: | Law Intern |
| Tags: | notice u/s 143(2), section 263 |
| Date: | September 21, 2025 |
| Excerpt of answer: |
In my view it depends on the scope of the s. 263 order. If the CIT has directed the entire assessment to be redone, all the issues are open and the AO will have to give a s. 143(2) notice pin-pointing the issues he wants to examine. However, if the CIT has himself pin-pointed a… (read more)
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