When notice u/s 143(2) was issued to the company, there was no amalgamation scheme. However after serving the notice, amalgamation took place between two companies and even the scheme was sanctioned by the Court after serving the notice u/s 143(2) of the Act. The fact of amalgamation was brought into the notice of Assessing Officer,… (read more)

A licence to use a trademark was granted to Indian company by Australian Company. The question arose before the Delhi High Court in CUB Pty Ltd v. UOI [388 ITR 617] whether transfer of a trademark would be taxable in India? The Court held that in terms of section 9(1)(i) of the Act, all income… (read more)

Section 54(1) of the Income tax Act 1961 reads as under: “Subject to the provisions of sub section (2) where, in the case of an assessee being an individual or a Hindu Undivided Family, the capital gain arises from transfer of long term capital assets, being building or land appurtenant thereto, and being a residential… (read more)

When the owner of the land enters into an agreement with a developer for the purpose of developing the land, the terms of the contract would indicate when the transfer would take place. Where the owners retains any right in the constructed area that may come-up in the future, it would not be a case… (read more)

The change in guard of the institution should not normally make any difference, unless the objects and functioning of the institution is changed for the purpose of income tax. If there is no change in the objects and functioning of the institution, the society shall not lose its character of being a charitable organization. The… (read more)

The transaction in question will be governed by section 9B of the income tax act. Section 9B provides that in case of retirement of partners, if the specified entity gives to the specified person, either capital asset or stock in trade, same will have to be valued at the market price, and shall be taxable… (read more)

The Income tax Appellate Tribunal, Mumbai in Raw Presery (P) Ltd v. ACIT [143 Taxmann.com 158] has minutely pointed out difference between two, while discussing rigors of section 68 of the Income tax Act, 1961 as under: “The said provision casts the initial burden to prove the nature of credit on the recipient, i.e. the… (read more)

At the time of sale it is Non Agricultural land. Therefore the value of land in 2001 should be considered as Non Agricultural land, as it was converted in 2001 as Non Agricultural Land. Before 2001 it was rural agricultural land but that has no significance after conversion. Thus non agricultural land is a ‘capital… (read more)

The contention of the assessee is correct as he is a “trustee” for the amount received, and is under obligation to spend that amount for future maintenance of the building on behalf of flat owner. Therefore the amount received as one time deposit is not taxable in the hands of promoter and builder. Section 3… (read more)

The loan given to the subsidiary company is a capital asset within the meaning of section 2(14) of the Income Tax Act and assessee can claim the loss incurred on assignment of such debt to the third party as a short term capital loss. The term “capital asset” is defined in section 2(14) of the… (read more)