This query is about administrative procedure. In my opinion paying pre-payment from partner account is correct as firm is not operative. In appeal or subsequently a letter should be written informing authority that since the firm is dissolved the amount of part-payment is made on partner’s account bearing no. ________. Further, it should be clarified… (read more)

Your understanding is not incorrect. However, there is no judicial precedent to buttress your contention. The argument will be tested before the Courts in the next few years. (read more)

Penalty under section 271(1)(b) of the Income-tax Act, 1961 (Act) is Rs. 10,000/-. As per section 273B of the Act, no penalty can be levied under section 271(1)(b) of the Act, where the assessee proves that there is a reasonable cause for such failure. Therefore, the onus is on the assessee to establish that there… (read more)

As per section 17 of the Registration Act, the registration has to be done in the district office where the property is situated. Certain State stamp laws have the requirement of stamping an instrument executed outside the state, within 3 months of it being brought within the state. Therefore, it would be imperative to check… (read more)

The assessee may have to explain the reasons for not attending before the Assessing Officer . If required the assessee may have to file an affidavit in support of the reasons . The assessee may have to file additional evidence before the CIT(A) by making an application under Rule 46A of the Act . The… (read more)

1. The subsequent notice is valid. The First reassessment order will be set aside and the appeal before CIT(A) is infructuous. 2. The AO has to provide all the information. The assessee should raise this point during the assessment proceedings. 3. The Assessee has to file the return of income and participate in the reassessment… (read more)

The new tax regime does not automatically apply to any assessee. Once the new regime is selected the assessee cannot go back to the old regime. Further, it is very much possible that the tax liability could be less in the old regime vis-a-vis the new regime, especially when the assessee is claiming deductions under… (read more)

Not argued means the contention is not raised at the time of hearing before the competent Authority. Normally the Appellate Forum will not entertain a arguments on facts if it is not argued before the lower Authorities, however if it is pure question of law the Competent court is bound to entertain. Unless one study… (read more)

Section 45(4) of the Income-tax Act, 1961 (Act) is not applicable as there is no cash payout on retirement of the partner. Further, there can be no implications under section 56(2)(x) of the Act in the hands of the partner, as the transaction cannot be said to be without consideration as the partner extinguishes his… (read more)

As no cash payment nor capital asset is given to the retiring partner, section 9B nor section 45(4) of the Income-tax Act, 1961 is attracted. (read more)