No. U/s 68, if the recipient can prove the identity of the payer (with PAN of lenders), creditworthiness/capacity of the source & genuineness of the transaction (with bank transfer evidence & confirmations), the sum credited in the books of an assessee cannot be treated as unexplained income. The AO is not justified in ignoring the… (read more)

The current exemption u/s 11/12 and 80G continues till up to AY 2026-27. The PCIT (E) has to pass an order of renewal within 6 months from the end of the month in which the Form 10AB was received (i.e., by end of June 2026). If the renewal is rejected, you have to file an… (read more)

I assume you are referring to the conversion of a capital asset into stock-in-trade. If so, u/s 45(2), the conversion is deemed to a transfer but the resultant capital gain is taxable only when the stock-in-trade is sold. (read more)

The period of holding of the new flat will commence from 2018 and so it is a long term capital asset. The cost of acquisition will be the FMV as of the date of redevelopment agreement in 2018. The difference between the sale consideration and the said FMV less expenses will be the LTCG. You… (read more)

Please see the cause list here: https://itatonline.org/info/cause_list/ (read more)

In my view, simultaneous levy of penalty u/s 271AAC and 271D is not permissible. 271AAC will apply here because the unexplained deposit and unexplained interest expenditure are assessed u/s 69A and 69C. However, having treated the deposit as income, the same cannot also be treated as being a loan or deposit for purposes of s.… (read more)

As your pagdi tenancy rights were surrendered in exchange for the new ownership flat under the 2023 redevelopment agreement, it will be treated as a fresh acquisition of the new flat. The cost of acquisition of the new flat is its FMV on the date the tenancy rights were surrendered and the redevelopment agreement became… (read more)

If regular purchases have already been recorded in books of accounts and only sales are unrecorded, then only the profit element embedded in those sales (i.e., GP at the assessee’s normal/historical GP rate) is taxable. (read more)

Please see the ITAT orders in: (i) Govardhan Deepchand Bhambha vs The ITO (ITAT Ahmedabad) (ii) Ram Charan Gupta vs. ITO (ITAT Jaipur) (iii) Sudhakar Gundappa Paldewar V. Commissioner of Income Tax (Appeals) (ITAT Delhi) (read more)

The HUF can continue as before with the daughter acting as Karta and the wife being a member. The details of the HUF can be changed in the income-tax portal and returns filed for AY 26-27 & onwards. Alternatively, the HUF can be partitioned fully between the wife and daughter with a 50% share each… (read more)