It is desirable to file an appeal before the CIT(A) and also file rectification application . CIT v. Pasupati Capital Services Pvt Ltd ITA No. 1622 of 2013 was admitted on 24 -4 -2015 which is pending for final hearing . It may be taken up for hearing after five years . At present appeal… (read more)

The valuation of shares has to be supported by a share valuation report prepared in accordance with Rule 11UA of the Income-tax Rules, 1962. If there is a difference between the value of shares allotted and the assigned value of loan (the consideration), the same will be taxable under section 56(2)(x) of the Act. (read more)

As we understand, the assessee has deposited the TDS with interest before issuance of any notice from the Department. The Hon’ble Supreme Court in the case of Madhumilan Syntex Ltd. v. UOI (2007 ) 290 ITR 199 (SC) held that prosecution proceedings are valid if TDS is not paid to the Central Government within stipulated… (read more)

As we understand an NRI wishes to sell his property and desires that TDS may be deducted not on gross proceeds rather on net proceeds. The Hon’ble ITAT Hyderabad Bench in the case of DCIT v. Kamineni Hospitals (P.) Ltd [2020] 117 taxmann.com 642 (Hyd)( Trib.) remanded back to AO with a direction to assessee… (read more)

As we understand, the consultant of the purchaser is referring to section 45(5A) of the Income-tax Act, 1961 (Act). The same is applicable to individuals and HUF only. The assessee being a Company will be liable to Capital Gains Tax and Business Profits tax in the year of transfer of the said lands, respectively. As… (read more)

Please contact your tax consultant for further guidance (read more)

Section 194J of the Income-tax Act, 1961 (Act) pertains to deduction of tax on payments of fees made to professionals and technical services. The scope of section 194J is wider than section 44AD or section 44ADA of the Act. TDS is rightly deducted under section 194J of the Act. However, as "freelance journalist" is not… (read more)

Once the assessee opts for the new tax regime under section 115BAC of the Income-tax Act, 1961 (Act), he is not allowed to claim deduction under action 80 TTB of the Act, inter alia. This has been clarified under section 115BAC (2) of the Act. (read more)

The nomenclature of the deed cannot be the basis of deciding the taxability of a transaction. The terms of the deed would have to be understood. It would have to be demonstrated from the terms & conditions that the deed amounts to a Sale deed. (read more)

It is a well settled position in reassessment law that reassessment cannot be made on the basis of a factually incorrect premise. This has been held by the Hon’ble Gujarat High Court in the case of Mumtaz Hazi Mohmad Menon v. ITO [2018] 408 ITR 268 and many other decisions. If the Ld. Assessing Officer… (read more)