As we understand, the consultant of the purchaser is referring to section 45(5A) of the Income-tax Act, 1961 (Act). The same is applicable to individuals and HUF only. The assessee being a Company will be liable to Capital Gains Tax and Business Profits tax in the year of transfer of the said lands, respectively. As… (read more)

Please contact your tax consultant for further guidance (read more)

Section 194J of the Income-tax Act, 1961 (Act) pertains to deduction of tax on payments of fees made to professionals and technical services. The scope of section 194J is wider than section 44AD or section 44ADA of the Act. TDS is rightly deducted under section 194J of the Act. However, as "freelance journalist" is not… (read more)

Once the assessee opts for the new tax regime under section 115BAC of the Income-tax Act, 1961 (Act), he is not allowed to claim deduction under action 80 TTB of the Act, inter alia. This has been clarified under section 115BAC (2) of the Act. (read more)

The nomenclature of the deed cannot be the basis of deciding the taxability of a transaction. The terms of the deed would have to be understood. It would have to be demonstrated from the terms & conditions that the deed amounts to a Sale deed. (read more)

It is a well settled position in reassessment law that reassessment cannot be made on the basis of a factually incorrect premise. This has been held by the Hon’ble Gujarat High Court in the case of Mumtaz Hazi Mohmad Menon v. ITO [2018] 408 ITR 268 and many other decisions. If the Ld. Assessing Officer… (read more)

Several factors need to be accounted for in determining the jurisdiction of the Assessing Officer, the query is silent about the AY under consideration. Furthermore, the initial burden of proof is on the assessee to prove the genuineness of the money. Albeit, the Assessee should ask for a copy of the relevant documents which are… (read more)

There is no estoppel in law. The assessee can make an application under Rule 29 of the ITAT Rules, 1963, for bringing fresh documents and evidence on record which goes to the root of the matter. (read more)

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)