The subsidiary has neither incurred the expense or paid to the Parent company. Where the same would have been cross charged to the subsidiary, it would be allowed as an expense. The Hon'ble ITAT in the case of Caterpillar India (P.) Ltd. v. DCIT [2017] 80 taxmann.com 325 (Chennai - Trib.) Where holding company allotted… (read more)

The act of renting out should not be construed to be an activity in the nature of trade, commerce or business. Secondly, assuming it is construed to be in the nature of trade, commerce or business, if the total receipts of rent is less than 20 percent of the total receipts of the trust. Thirdly,… (read more)

As we understand, the assessee has purchased shares through a broker, the boker is merely a custodian of the shares whereas the assessee continues to be the beneficiary. Therefore, the assessee should be entitled to the benefit of section 10(34A) of the Income-tax Act, 1961. (read more)

The stand of the assessee is not incorrect. Albeit, it is advisable to form a Company, inter alia, as the rate of tax is 25 per cent if the Turnover is less than Rs. 400 Cr. Au Contraire, where the share of members is known, and the income of any member of BOI exceeds the… (read more)

: As we understand, your case pertains to a Notice under section 148 of the Income-tax Act, 1961 (Act) which is treated as Notice under section 148A of the Act in light of the decision of the Hon’ble Supreme Court in the case of UOI v. Ashish Agarwal [2022] 138 taxmann.com 64 (SC). It is… (read more)

In '3CD Data entry' window Clause 30C & 44 of Form 3CD were kept in abeyance till 31st March 2022. As these are applicable from AY 2022-23, related tables are unhidden. • 30C - Details of Impermissible avoidance arrangement u/s 96 • 44 - Break-up of expenditure under GST Refer Circular No 5 of 2021… (read more)

As we understand, the Charitable Trust is not satisfying the conditions as per section 2(15) of the Income Tax Act, 1961 (Act), and hence wishes to forfeit its exemption under section 11 of the Act. The Income would be business income and the taxability would be on net basis at Maximum Marginal Rate. (read more)

Refer the show cause notice and find out whether any specific charge is mentioned in the show cause notice. If the notice is not accordance with the law ,the penalty can be deleted on technical grounds . Refer Mohd. Farhan A. Shaikh v. ACIT ( 2021 ) 434 ITR 1/ 200 DTR 65/ 320 CTR… (read more)

The last date for filing a belated return under section 139(4) of the Income-tax Act, 1961 (Act) for AY 2020-21 is over. Further, the assessee cannot file an updated return under section 139(8A) of the Act as there is no tax liability. Therefore, the only recourse available to the assessee is to file an application… (read more)

The cost of acquisition shall be the Stamp Duty Value of the property as on December 31, 2010 i.e., Rs. 7,97,500/- and the period of holding shall commence from December 31, 2010. (read more)