Ideally, an HUF comes into existence after the marriage of a Hindu couple. A Hindu male (widower) cannot alone constitute an HUF. He can constitute an HUF along with his daughters & sons, irrespective of their marital status. (read more)

Firstly, the concept of “recorded reasons” is no longer a part of the Income-tax Act, 1961. Therefore, asking for a copy of the recorded reasons won’t help. The assessee should rely on the first proviso to section 149(1) of the Income-tax Act, 1961. However, there is a CBDT Instruction no. 1 of 2022, which has,… (read more)

As we infer, the assessee claimed deduction under section 54F of the Income-tax Act, 1961 on the Capital Gains accrued from sale of interest in the Partnership Firm. The assessee has not fulfilled the conditions for availing deduction under section 54F of the Act and hence the same has been denied. As the assessee never… (read more)

Mere filing an affidavit is not sufficient to prove the creditworthiness of the grand father .Grand father should have appeared before the Assessing Officer in response to summons issued by the Assessing Officer. It may be desirable to get the third party confirmation or affidavit and make an application for filing for additional evidence before… (read more)

The Assessing Officer is not justified in rejecting the valuation of DCF method of valuation . In PCIT v. Cinestaan Entertainment Pvt. Ltd. (2021) 433 ITR 82/ 199 DTR 345/ 320 CTR 381 (Delhi) (HC) the Court held that addition cannot be made disregarding the DCF method adopted by the assessee. Refer , TSI Yatra… (read more)

The issue of penny stock allegations would have to be evaluated on a case-to-case basis. With details such as i. SEBI inquiry or action ii. Source of information for the Department iii. Justification for rise in share price, if any, et cetera. With respect to the alleged unexplained investment, the Assessee should demonstrate before the… (read more)

LTCG to be computed on Gross Basis in the total income i.e.1.50 lakh to included in the total income. Tax on such 1.50 lakh would be calculated excluding 1 lakh i.e. 0.50 lakh @10% chargeable to tax. It is to be shown in ITR Schedule B serial no.5 From sale of equity share in a… (read more)

It would be pertinent to check for which Assessment Years, the Hon’ble ITAT has held that no Capital Gain arises, as now there is no denying that TDR is a Capital Asset as per section 2 (14) of the Income-tax Act, 1961 (Act). Earlier, no Capital Gain was applicable on sale of TDR [CIT v.… (read more)

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)