The Hon'ble Calcutta High Court in the case of PCIT v. Trimex Fiscal Services (P.) Ltd. [2022] 141 taxmann.com 524 (Cal)(HC) observed that in terms of clause (viib) of section 56(2) where a company not being a company in which public are substantially interested, receives, in any previous year from any person being a resident,… (read more)

Sales cannot be made addition under section 68 of the Act . When the purchases are reflected in the regular books of account and stock register is maintained . Refer PCIT v. Sandeep P. Shah (2021) 124 taxmann.com 206 (Guj) (HC), SLP of revenue is dismissed, PCIT v. Sandeep P. Shah (2021) 277 Taxman 395… (read more)

If at the time of sale of the property, the land was an agricultural land and also satisfies the conditions for rural agricultural land under section 2(14) of the Income-tax Act, 1961, then Capital Gains will not accrue in the hands of the assessee. (read more)

With respect to the immovable property, the 120 lacs will be the full value of consideration received and 32 lacs will be the cost of acquisition. If the expenses can be supported by bank statements, the same may be claimed as cost of improvement. Further, these costs can be adjusted against inflation. The capital gain… (read more)

There are diverging views on this issue. However, ex abundanti cautela, It would not be ideal to claim the whole amount as deduction in the year of purchase of membership. The claim of expense may be spread out over the period of membership. (read more)

On the facts of the querist at the time of purchase of flat, the said flat was unfinished or semi-finished condition or wardrobe cabinets, kitchen platform, and cabinets not in place. Assessee incurred expenditure after purchasing property, said additional expenses incurred by the Assessee would be eligible as qualifying investment under section 54 of the… (read more)

The Central Board of Direct Taxes vide Order under sub-section (2) of Section 144B of the Act for specifying the scope/cases to be done under the Act, F.No. 187/3/2020-ITA-I dated 31st March, 2021 (the Order) specified that all the assessment proceedings pending as on 31.03.2021 and the assessment proceedings initiated on or after 01.04.2021 (other… (read more)

As the receipt of shares is without adequate consideration, the same can trigger section 56(2)(x) of the Act in the hands of the recipient. (read more)

As the shareholder receives a consideration higher than the FMV of the shares. Therefore, there is no inadequate consideration or indirect gift. Therefore, section 56(2)(x) of the Act will not apply. (read more)

Mr. A should furnish a copy of the return of income of Mrs. A and demonstrate that the income has already been taxed in her hands. File rectification application and thereafter Revision application . If no action is taken the assessee can file writ before High Court. (read more)