The exemption under section 11 of the Income-tax Act, 1961 (Act) will not be denied merely because the trust is having residential income. However, the income would have to be applied for charitable purposes [Oswal Bandhu Samaj v. ITO - [2022] 138 taxmann.com 561 (Pune-Trib.)]. Section 11 to 13 of the Act being a code… (read more)

As we understand, the existence of a nexus is a fact finding mission. The Ld. AO can question the same. The Assessee can take shelter of the principle of consistency as all earlier AYs were accepted by the Department. Further, the Hon'ble High Court of Allahabad in the case of CIT v. Sushila Mallick [2013]… (read more)

I feel the assumption that State has power to levy tax on goods and Centre on services appears to be mistaken. Under GST both have power to levy tax on goods and services. It is Central council which takes policy decisions and all states also implement same. Regarding 2020/2021 amendment about club, association, formalities must… (read more)

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)