As we understand, there is no cash or stock or capital asset given to the retiring partner by the firm. Therefore, there will be no implication under section 9B and section 45(4) of the Income-tax Act, 1961 (Act). However, there is an extinguishment of Partner B's rights in the firm and consideration for the same… (read more)

The PCIT can cancel the registration retrospectively if they come to a conclusion that the trust was not running for charitable purposes. PCIT is empowered to cancel the registration of the trust retrospectively subject to the provisions of section 12AA(3) of the Income-tax Act, 1961 (read more)

In ACIT v. Nalgonda Dicocese Society ( 2021) 92 ITR 22 ( SN) (Hyd ) ( Trib) Held that in the remand report the Assessing Officer gave a finding that there is no violation of provisions. The Tribunal held that the department could not be held an aggrieved party where the Assessing Officer files a… (read more)

As we understand, the last amendment to section 54 of the Income-tax Act, 1961(Act) was vide Finance Act, 2019. The said amendment should not have an effect in the interpretation of section 54(1) of the Act. As per judicial pronouncements, two adjacent flats with common entrance and kitchen have been held to be one single… (read more)

The Hon'ble Supreme Court in the case of CIT v. Raja Benoy Kumar Sahas Roy [1957] 32 ITR 466 (SC) held that Dairy-farming will not be 'agricultural' operation and income from dairy-farming will not also be 'agricultural income'. Therefore, income from milk derived from milch cows maintained by the assessee, is not agricultural income. The… (read more)

As we understand, the assessee has a plot of land and an old residential property. Similarly, the assessee's daughter in law also has a plot of land. Both will sell their plot of lands and invest in a new residential house property (i.e., demolishing the old residential property and constructing a new one). Both will… (read more)

Yes, the Partnerships are fundamentally on the basis of Indian Contract Act, 1882. Therefore, as long as the objects are legal and there is a mutual understanding amongst the partners, such an arrangement is possible. AMT is on the basis of total computation of income of all consolidated projects and is not computed project wise. (read more)

Was the statement of the accountant retracted? Was there any incriminating evidence found in the course of search? Was the assessment of the assessee made under section 148 of the Income-tax Act, 1961(Act) or section 153C of the Act? These questions will have to be answered to understand the case better. Further, the Assessee can… (read more)

As we understand, the assessee could not file Form 10-IC on or before the due date. The said Form is a mandatory requirement for claiming the benefit of a lower rate of tax. Kindly refer to the decision of the Hon'ble ITAT Mumbai Bench in the case of Suminter India Organics Private Limited v. DCIT… (read more)