Answers to queries on legal issues

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45[3] vs 50c
Subject: 45[3] vs 50c
Category: 
Asked by: BKS
Answered by:
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Date: June 20, 2023
Excerpt of answer:
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)
Deduction of education of director
Subject: Deduction of education of director
Category: 
Asked by: Venkat
Answered by:
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Date: June 19, 2023
Excerpt of answer:
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)
filing in ITAT
Subject: filing in ITAT
Category: 
Asked by: BS
Answered by:
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Date: June 19, 2023
Excerpt of answer:
The ITAT has not notified the mandatory filing of the appeal . At present the appeals are filed manually . The ITAT has to amend the Income -tax (Appellate Tribunal) Rules , 1963 (read more)
faceless
Subject: faceless
Category: 
Asked by: BKS
Answered by: Reply of the Expert is awaited;
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Date: June 19, 2023
Excerpt of answer: Reply of the Expert is awaited. Please check back later
Show cause notice
Subject: Show cause notice
Category: 
Asked by: Gowhar
Answered by:
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Date: June 19, 2023
Excerpt of answer:
You may once again submit the copy of acquittal order . If no appeal is filed you may state that the no appeal is pending . The competent authority may drop the proceedings . You may consult an advocate who is specialised in service law , he may be able to provide the case laws… (read more)
Tapping of phone records
Subject: Tapping of phone records
Category: 
Asked by: Kiran
Answered by:
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Date: June 18, 2023
Excerpt of answer:
Income tax Authorities does not have a right to listen to the phone conversations .As per Section 5(2 ) of the Indian Telegraph Act , 1885 , Telephone can be trapped on the occurrence of any public emergency or in the interest of the public safety or a State Government or any officer specially authorised… (read more)
Amended Law /TWIN (Old and New) TABLES for COST INFLATION INDEX
Subject: Amended Law /TWIN (Old and New) TABLES for COST INFLATION INDEX
Category: 
Asked by: vswami
Answered by:
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Date: June 16, 2023
Excerpt of answer:
In form ITR 2 – For Individuals and HUF there is a Schedule of B for Long Term Capital Gain from Sale of Land or Building, wherein to fill the details of relevant facts in the column. The column mention such as the Date of purchase/acquisition, Full Value consideration received / receivable, value of the… (read more)
payments to tenants
Subject: payments to tenants
Category: 
Asked by: BKS
Answered by:
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Date: June 15, 2023
Excerpt of answer:
Yes, the same can be claimed as a cost of improvement. The Hon'ble Income-tax Appellate Tribunal - Hyderabad Bench in the case of Mohammed Farooq v. ITO [2015] 60 taxmann.com 212 (Hyderabad - Trib.) held that while determining the cost of acquisition, the cost of buildings on the land to be demolished, amounts paid to… (read more)
54F.Capital gains- Investment in a residential house –
Subject: 54F.Capital gains- Investment in a residential house –
Category: 
Asked by: bs
Answered by:
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Date: June 15, 2023
Excerpt of answer:
From what we understand from the limited facts provided, the assessee is gifting his second residential property to a relative so that the assessee can claim a deduction under section 54F of the Act when the assessee sells a plot of land. The same appears to be permissible as per the law. Courts have upheld… (read more)
legal heir
Subject: legal heir
Category: 
Asked by: BS
Answered by:
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Date: June 14, 2023
Excerpt of answer:
When a Muslim man dies intestate his estate devolves on his heirs at the moment of his death, and the heirs succeed to the estate as tenants-in-common in specific shares. (read more)