There is no specific provision under section 47 of the Income-tax Act, 1961 (Act) dealing with a conversion of a charitable trust into a company under section 8 of the Companies Act, 2013. However, assuming the transaction is considered as a transfer under the scheme of the Act, as per the computation mechanism provided under… (read more)

Section 2(15) of the Income-tax Act, 1961 (Act) has defined “charitable purpose”. It would be pertinent to understand which charitable purpose is undertaken by the assessee [As per its Memorandum] If the assessee’s objects/purpose is, relief of the poor, education, yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments… (read more)

As per section 50C of the Income-tax Act, 1961 (Act), where a reference is made to the Valuation Officer and the value adopted by the valuation officer is lower than the stamp duty value; the value adopted by the valuation officer would be the Full value of consideration received. Therefore, only the difference between the… (read more)

It can be contested that the reassessment is on the basis of change of opinion. In the erstwhile reassessment regime, it was well settled that reassessment cannot be made on the basis of a change of opinion. It is a settled position in law that no authority has the power to review its own order.… (read more)

As per section 33 of the Limited Liability Partnership Act, 2008 (LLP Act), a Partner is obligated to contribute money or other property or other benefit or to perform services for a limited liability partnership shall be as per the limited liability partnership agreement. There is no specific penalty for such violation. As per section… (read more)

The firm will attract Capital Gains under section 45(4) of the Income-tax Act, 1961. As per the formula, the Capital gains will be Rs. 60 lakhs. [ Capital Gains = 50 lakhs – ( - 10 lakhs)] The nature of capital gains i.e., short term or long term will be determined as per Rule 8AA/8AB… (read more)

The action of the Ld. Assessing Officer is not completely justified. However, since its clear on what basis the additions have been made by the Ld. AO, the Assessee can file additional evidence before the CIT(A) by making an application under Rule 46A of the Income-tax Rules, 1962 and gather a remand report from the… (read more)

There is a specific provision i.e., Section 45(5A) of the Income-tax Act, 1961 was introduced via Finance Act, 2017 for determining Capital Gain tax in cases where individual land holders enter into an agreement with the developers. Each individual assessee should compute his/her capital gains accordingly. The Security deposit is refundable and hence not the… (read more)

The view of the jurisdictional Tribunal is binding on the departmental officers. In the case of Bajaj Auto Finance Ltd. v. CIT (2018) 404 ITR 564 (Bom.)(HC), It was held that interpretations given by High Courts and Tribunals cannot be ignored by the Assessing Officers. In the case of ITO v. Siemens India Ltd (1985)… (read more)

This is a common issue faced by a lot of assessees. Filing an appeal will not condone the delay in filing Form 10B. The CBDT had issued a Circular No. 2 of 2020 dated January 3, 2020, wherein it empowered the Ld. CIT(E) to condone a delay in filing of Form 10B up to a… (read more)