The purchase of the extra 23 sq ft does not trigger a separate capital gains event. Even without the purchase, there is a "transfer" u/s 45(5A) and short-term capital gains are taxable. However, deferral to February 2026 is desirable because this would make the original flat a long-term capital asset and qualify the gain for… (read more)

Recruitment and placement is not a "specified profession" under Section 44AA(1). Therefore, presumptive taxation at 50% of receipts under 44ADA is not available. Section 44AD will apply except if the businesses involves agency business, commission, brokerage etc. (read more)

If all the conditions of s. 2(14)(iii) are satisfied, the capital gain would not be taxable. The fact that income from agricultural activity is not shown should not be a bar. The principle laid down by the Bombay High Court in The Commissioner Of Income Tax-Iii ... vs Smt. Maltibai R. Kadu and CBDT Circular… (read more)

As the search on A has yielded materials on B's supplies to C, Section 153C must be invoked instead of Section 148. (read more)

PCIT v. Kanak Impex (India) Ltd (2025) 474 ITR 175 has been distinguished in ACIT v. Dhiraj Parbat Gothi (Mum)(Trib), J. Kumar Infraprojects Ltd. v. DCIT (Mum) (Trib), Palmon Impex Pvt. Ltd. v. ITO (Mum)(Trib), ITO v. Pradeep Kumar Agarwal (Jaipur)(Trib) and Quality Heightcon Pvt. Ltd. v. DCIT(Mum)(Trib) (read more)

It is an unfortunate situation. A number of other taxpayers have raised similar grievances. I suggest you file a detailed petition with CPGRAMS. If that doesn't work, you may consider filing a Writ Petition in the High Court. (read more)

Self-acquired property can be disposed off at the will of the owner, including by giving a gift. Sections 122 to 129 of the Transfer of Property Act deal with gifts. Immovable properties like the commercial shop will require a registered deed and also payment of stamp duty. (read more)

In my view it depends on the scope of the s. 263 order. If the CIT has directed the entire assessment to be redone, all the issues are open and the AO will have to give a s. 143(2) notice pin-pointing the issues he wants to examine. However, if the CIT has himself pin-pointed a… (read more)

One way to reconcile may be that Vembu Vaidyanathan was a case of construction where substantial payments had been made. CBDT Circular No. 471 dated 15.10.1986 and Circular No. 672 dated 16.12.1993 help this interpretation. Otherwise, if it is a ready-made flat fit for occupation, possession may be insisted upon. (read more)

GST paid as part of the purchase price can be included in the cost of acquisition for LTCG calculation. However, GST paid for services related to the flat may or may not be allowable depending on the nature of the services. Interest paid before the property was acquired/possessed may be allowable as a deduction. (read more)