As we understand, as per the formula given under section 45(4) of the Income-tax Act, the capital account may be represented in any manner. Therefore, the ‘reserves and surplus’ forms a part of the Capital of the Partner. Hence, the sum of Rs. 100 lakhs should not attract section 45(4) of the Act. (read more)

If the tax in dispute is less than the amount prescribed as per the CBDT circular , the appeal will be dismissed by the Tribunal unless, exception provided in para 10(e) of Circular No. 17 of 2019 ( 2019 ) 426 ITR 106 (St) ,is applicable . Refer Circular No. 3 of 2018 dated July… (read more)

File writ petition before High Court . High Court may direct the revenue to refund the amount with interest . (read more)

1. Yes, Partition of an HUF need not be equal. The largest share would be exempted from Stamp Duty. 2. The wife of the karta, can be a member of the HUF but not a coparcener of her husband’s HUF. A coparcener cannot ask for partition of the HUF. The wife of the karta can… (read more)

There is a formula provided under section 45(4) of the Income-tax Act, 1961 (Act) for computation of capital gains. According to it, any excess received over and above the capital balance would amount to Capital Gains. The Firm is liable to tax on the excess paid to the partners over and above the capital balance… (read more)

Merely on the basis of certain documents found in the third party premises the addition cannot be made . The provision of section 132 (4A) and section 292C is not applicable in respect of documents found in the third party premises . In Dy.CIT v .GSNR Rice Industries Pvt. Ltd (2021) 90 ITR 114 /… (read more)

Search assessment are excluded from the provisions of section 148A of the Income-tax Act, 1961 (Act). Further, it is also deemed that the Ld. Assessing Officer has information that suggests that income has escaped assessment. Further, by virtue of first proviso to section 149 of the Act, the Assessment years that could not have been… (read more)

Yes, the purchaser of flat/shops should reply on the first proviso to section 149(1) of the Income-tax Act, 1961 (Act). However, there is a CBDT Instruction no. 1 of 2022, which has, inter alia, instructed Assessing Officers to Assessee AY 2013-14 onwards. Therefore, the purchasers, based on the facts of their case, might have to… (read more)

The Order under section 148A(d) of the Income-tax Act, 1961 (Act) can be challenged if an order is passed without giving at least 7 days’ time for the assessee to respond to the Notice issued under section 148A(b) of the Act. Yes, uploading on the portal amounts to good service. As long as the document… (read more)