In Co-Operative Rabobank U. A. v. CIT (IT) (2021)437 ITR 639 / 205 DTR 113/ 322 CTR 257/ ( 2022) 284 Taxman 175 (Bom)(HC) has allowed the writ petition wherein the revenue sought to withdraw the interest paid earlier under section 244A of the Act. The Court also discussed the issue of waiver of interest… (read more)

Sale of agricultural rural land and cash received from the said sale transaction can be deposited in bank. Assessee is able to explain source of said deposits as well as demonstrate said land is rural agricultural land as per the land revenue records and capital assets fall under section 2(14)(iii), addition was not justified under… (read more)

A shareholder selling his share to another shareholder below the Fair Market value will attract section 56(2)(x) of the Income-tax Act, 1961. He would be required to justify his selling price with a valuation report. Valuation under Rule 11UA has to be done as per Net Asset Value (NAV) or Discounted Cash Flow (DCF) Method.… (read more)

The same is a debatable issue, while some argue a day is a span of 24 hours, others consider that a day does not have to be a whole day. However, the assessee must raise this issue in their objection. Reliance should be place on the decision of the Hon’ble Bombay High Court in the… (read more)

In CIT v. Indian Overseas Bank (2021) 207 DTR 202 (Mad) (HC) the Court held that the issue which was not subject matter of reassessment limitation has to be computed from the original assessment . Revision was held to be barred by limitation . Referred CIT v. Alagendran Finance Ltd ( 2007)) 293 ITR 1(SC),… (read more)

As per the language in section 56(2)(x) of the Income-tax Act, 1961, the same is applicable to transactions which are without consideration or in adequate consideration. In case of a buyback where there is a buyback, there is a premium paid by the company to the shareholder. Therefore there is no question of inadequate consideration.… (read more)

For the relevant year the appeal was decided by the CIT(A) hence the revision application may not be entertained by the Commissioner u/s 264 of the Act . If the department has filed an appeal against the order of the CIT(A) , allowing the deduction u/s 80IB(10) of the Act , the assessee can file… (read more)

In CIT v. MD Wadar and Co ( 2020) 429 ITR 451 ( Bom)(HC) , the Assessing Officer Belgaum reopened the assessment . The CIT (A) Bangalore has decided the appeal and the Panaji Bench of the Tribunal decided the matter . The Revenue has filed an appeal before Bombay High Court . Dismissing the… (read more)

As we understand, The assessee wishes to file objections to a Notice issued under section 148 of the Income-tax Act, 1961 issued on or after April 01, 2021. The issue pertains to whether the erstwhile scheme of reassessment is to be followed or the new regime which was Introduced vide Finance Act, 2021. Firstly, the… (read more)

The assessee has to ascertain the market value of the alternative accommodation allotted to the legal heir on surrender of tenancy rights .On the facts value adopted by the stamp authorities as on 26 -12 -2013 can be considered as value of Tenancy rights . Refer special judgement in Dr. D.A. Irani v. ITO (1994)… (read more)