The transaction is merely a book entry. There is no "actual payment". So, neither Co will get a deduction until the amount is actually paid. (read more)

In my view, neither Section 45(4) nor 9B will apply because this is not a transfer by the firm to a partner. It is a transfer of a partner's interest to a third party (the trust). These sections do not target external gifts of interests. (read more)

Sections 194JA and 194JB were introduced by the Finance Act, 2020 with effect from April 1, 2020. (read more)

It is a debatable issue. In my view, the principal amount cannot be claimed as a deduction under Section 43B, as it is hit by Explanation 1 to Section 37(1). The fraudulent availment of Cenvat credit via fake invoices is an offence. The payment reverses the direct financial gain from this offence and restores the… (read more)

As per the proviso to section 206C(1H), if the buyer has deducted TDS under section 194Q on the purchase of coal, the seller is exempted from collecting TCS under section 206C(1H) on that transaction. (read more)

Yes. U/ 45(5A), there is a transfer on redevelopment and capital gains are chargeable. Exemption u/s 54 will not be available as the reinvestment is in a commercial property. If the old property was depreciable, than the transaction will have to be processed as STCG u/s 50 by reducing the consideration from the block of… (read more)

Even prior to section 56(2)(viib), addition of unexplained credits such as share premium etc could be assessed u/s 68 as was done in CIT v. Lovely Exports 299 ITR 268 (SC), NRA Iron & Steel Pvt. Ltd. v. PCIT 412 ITR 161 (SC) etc. If the AO has accepted the share capital as genuine, he… (read more)

Yes. The activity carried on by your mother is a business and not the medical profession as she is not a qualified dentist. In Ranjita Jena, the Tribunal recorded the following finding of fact: "13. From the facts and findings recorded by the AO, it is clear that the assessee was engaged in the medical… (read more)

No. Under the principles of natural justice, all material or evidence relied upon by the tax authorities must be disclosed to the assessee and he must be given opportunity to rebut or explain it. In Kishinchand Chellaram v. CIT [1980) 125 ITR 713 (SC), the Supreme Court held that non-disclosure of evidence to the assessee… (read more)

There is no need to defer the registration date as the property is held by you for more than 24 months and constitutes a long-term capital asset. The gains will be exempt u/s 54. As regards the additional purchased portion of 23 sq ft, it is a fresh purchase from the developer and Section 45(5A)… (read more)