As per law both officers have jurisdiction for taking actions. However practically the double proceedings can be avoided by informing the authorities to avoid double proceeding. Reference can be made the judgment of Allahabad High Court Ajay Verma Vs Union of India (WRIT TAX no 1169 of 2021 dated 09.02.2022). In this judgment the legal… (read more)

The assessee should ask for copy of the statement recorded and also copy of excel sheet seized . The assessee should request for cross examination of the CFO. Merely on the basis of statement , addition cannot be made. Refer Krishna D. Pawar v. ITO ( Mum)( Trib) www.itatonline .org . ( ITA No. 151… (read more)

Section 194IC of the Act is only applicable for transactions undertaken under section 45(5A) of the Act. We do not think that is your case. As we understand, section 54 of the Act is attracted in the case of a redevelopment of a residential building and the excess sum received in cash, if any, is… (read more)

The equity shares granted under the Employee’s Stock Option Plan to an employee comes with a vesting period. It is only after the vesting period has ended and the employee has exercised his right to convert the option into shares (at an exercise price), the employees get voting rights along with title of the shares… (read more)

It is advisable to have a gift deed in place. The amount received by your wife should be shown in her income computation as a gift exempt from tax as it is received from her relative. (read more)

Till today no direct judgment. The department is relying on section 16(4) which reads as under: “16. Eligibility and conditions for taking input tax credit.— (4) A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after… (read more)

Both sections are independent . Section 55A is very broad it applies for ascertaining the fair market value of a capital asset for the purposes of this Chapter , ie. Chapter IV . The Assessing Officer may refer the matter to Departmental Valuer . When the stamp duty valuation is more than the consideration the… (read more)

If the valuation of shares is backed by a report of valuation as per Rule 11UA of the Income-tax Rules, 1962, the same cannot be denied by the Assessing Officer. (read more)

The deeming fiction of section 50C of the Act cannot override the deeming fiction under section 45(3) of the Act. This has been held by the Hon'ble Income-tax Appellate Tribunal - Mumbai Bench in the case of Network Construction Company v. ACIT (2020) 185 ITD 318 (Mum)(Trib) (read more)

Depends upon the facts of the case and the agreement with director , how it is beneficial to the interest of the company . In Aswathanarayana & Eswara v. Dy. CIT (2018) 258 Taxman 210 (Mad.)(HC) the court held that if it is related to business the expenditure is allowable as deduction . In Shreenath… (read more)