Yes, the stamp duty value of the property cannot exceed Rs. 45 lakhs. No, the safe harbour limit under Section 43CA and section 50C of the Income-tax Act, 1961 (Act) will not be applicable to section 80IBA of the Act. The Hon’ble Supreme Court in the case of P.R. Prabhakar v. CIT [2006] 284 ITR… (read more)

As the Fourth letter is “G”, it means it is a Government Agency. However, that is not conclusive for the purpose of application of the provisions of the Income-tax Act, 1961 (Act). The books of accounts and the nature of transactions would have to be understood. If the fuel pump is merely allotted by the… (read more)

The Assessment order is valid in law . If the assessee is aggrieved by the said order the assessee may have to file an appeal or writ to quash the said order. Tax department can recover the tax based on the said order . (read more)

Where there are two Partners and one of them dies, the Partnership stands dissolved. Where the Legal Heirs of the deceased partner is paid in Cash, on account of dissolution of the Firm, neither section 9B nor section 45(4) of the Income-tax Act, 1961(Act) is attracted. However, where the Partnership Firm is dissolved and the… (read more)

Yes, it is a valid Notice, since the reassessment is within 3 years from the end of the AY i.e., AY 18-19, the pecuniary limit of Rs. 50 lakhs will not apply. (read more)

As per proviso to section 54(2) of the Income-tax Act, 1961, that if the amount deposited under the scheme is not utilised wholly or partly for the purchase or construction of the new asset within the period the stipulated period, the amount not so utilised shall be charged under section 45 of the Act as… (read more)

As the Department has preferred an SLP in all reassessment cases before the Hon’ble Supreme Court. The Ld. Assesing Officer will rightly proceed with assessment so as keep the issue alive. The Assessee might get relief from the first appellate authority. Further, there may not be any recovery proceedings in light of several judicial precedents… (read more)

The Hon’ble Mumbai ITAT in the case of Joseph Mudaliar v. DCIT [2021] 130 taxmann.com 250 (Mumbai - Trib.) has held that Amendment made in section 50C(1) of the Act by inserting third proviso by Finance Act, 2018, with effect from April 01, 2019 is curative in nature and same would apply retrospectively. Therefore, the… (read more)