As we infer, there is a dissolution of a Partnership, pursuant to which a capital asset will be transferred to a partner which will attract section 9B of the Income-tax Act, 1961 (Act). On a plain reading of the statute, Deduction under section 54EC of the Act should be allowed to the Specified entity (provided… (read more)

As per section 159(1) of the Act, where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased. (read more)

The assessee has only settled the issue of unexplained share premium under the Vivad se Vishwas Scheme. Any transfer of shares will be a new transaction which will attract Capital Gains. (read more)

: Section 50 specifically refers that where the capital asset is an asset forming part of block of assets in respect of which the depreciation has been allowed . On the facts the depreciation is not allowed as per the Income -tax Act , hence the claim of the assessee is justified . In Divine… (read more)

This seems to be a pecuniary case of miscommunication between the jurisdictional AO and the NFAC. Once the reassessment proceedings are dropped the assessment order is illegal and bad in law. (read more)

The WDV for working out depreciation would be the WDV of the block at the beginning of the year plus additions to the block minus the sales consideration received. In CIT v. Priyadarshini Spinning Mills Ltd. (2014) 366 ITR 563 / 52 taxmann.com 65 (T&AP)(HC) held that Compensation reduction only to the extent value reflected… (read more)

Only agricultural income is exempt u/s 2(1A) read with section 10 (1) of the Act. Dairy income (Milk from Cow ) is taxable . In State of Orissa v. Ram Chandra Choudhury (1962) 46 ITR 246 (Orissa ) (HC) applying the ratio laid down by Supreme Court in CIT v. Raja Benoy Kumar Sahas Roy… (read more)

Yes, the claim can be denied as the assessee has not constructed or purchased a residential house property within the stipulated time as per the statute. (read more)

The Assessee should file its return in compliance with Notice issued under section 148 of the Act and participate in the assessment proceedings. Merely because reassessment proceedings have been initiated does not mean that additions will be made. (read more)

If no incriminating documents found addition cannot be made u/s 153C of the Act . Each case has to be argued on facts . Courts have held that the completed assessment could not be abated unless some incriminating evidence or material was found during search qua additions made by Assessing Officer . Refer following case… (read more)