In case, where a capital asset is transferred by a company to a wholly owned subsidiary company and the transferee company is an Indian company, the transferor company is exempted from capital gain tax. As per Explanation (6) to S, 43(1) and Explanation (2) to S. 43(6) the transferee company is entitled to depreciation only… (read more)

S. 54F grants relief from tax on capital gains in respect of any long term capital assets other than residential house. S. 54 and 54F are in Pari-materia. The common condition under both the provisions it that the assessee must purchase or construct a residential house before or after the transfer of the asset which… (read more)

The facts stated in the query are as under:- a) assessee had inherited the farmland (agriculture) on demise of his father/ forefathers. b) the said land was acquired by the government, c) on account of acquisition, assessee received approx. `1 Cr as compensation, d) assessee wants to buy a flat in the name of his… (read more)

The entries in the books of account shall be that excess amount payable to the specified person shall be credited to the account of specified person and it will be debited in the trading account towards the cost of purchase. In other words stock-in-trade value shall be increased by the like amount as per the… (read more)

The excess amount paid to the specified person shall be chargeable to income tax under section 45(4). It will be subjected to capital gains under section 45 in the hands of specified entity and shall be chargeable to income tax. Source : AIFTP Journal November 23 (read more)

The tax under section 115TD is not free from doubt in view of the amendment from 1-4-2023 by addition of clause (iii) in sub section 3 of section 115TD, it is advised that as precautionary measure the compliance of amended provision should be taken care. In my opinion it is it is not hit by… (read more)

In case the gross receipts are less then Rs.5 Cr then no report is required to be submitted as it is exempt from operation of Income Tax act under section 10(23C) (iiiad)., If the school is not registered U/S 12AA/12(23C) will not make any difference. However if the school desires to take benefit of registration… (read more)

Sub section (2) of section 10AA of the Act reads as under: The deduction under clause (ii) of sub section shall be allowed only if following conditions are fulfilled:- a) The amount credited to Special Economic Zone Reinvestment Reserve Account is to utilized- i) For the purpose of acquiring machinery or plant which is first… (read more)

Sub section (3) of section 6 of the Income tax Act, 1961 define the POEM. The section reads as under: (3) A company is said to a resident in India in any previous year, is in India, if:- (i) it is an Indian company; or (ii) Its place of effective management in that year, is… (read more)

In Apollo Tyres v. CIT [255 ITR 273] the Supreme Court held that while computing the income under section 115J (predecessor to section 115JA and this section), the AO has only the power of examining whether the books of account are certified by the authorities under the companies Act, as having been maintain in accordance… (read more)