The intention of any Taxation law is to collect tax once on the taxable transaction. Where legislature feels to protect leakage, instead of forward charge, RCM system is applied. Therefore, if the tax is paid under RCM, though right or wrong, the tax authorities cannot be justified in asking tax on forward basis on the… (read more)

Section 244 of the Income-tax Act, 1961 is a mandatory provision as it uses the term “shall” and the interest is applicable until the payment of refund. The interest will be at the rate of 0.5 per cent per month. The assessee can prefer a rectification application and an appeal on the said issue. If… (read more)

When the Assessee is following presumptive taxation system for his retail trade business and he is offering 10% of his business receipts for taxation under section 44AD. If the Assessee has offer explanation of the cash deposits form the business receipts. The Assessing officer cannot make separate addition for cash deposited in bank under section… (read more)

Depreciation under section 32(1)(iia) of the Income-tax Act, 1961 (Act) will not be allowed to an assessee opting for special rate of tax under section 115BAA of the Act. Furthermore, section 115BAA(2)(ii) of the Act clarifies that set off or carry forward of such depreciation will also not be allowed. The said proviso is to… (read more)

It may be desirable to make an application to rectify the mistake to the Designated Authority to accept the VSVS application filed by the Assessee. In case no response is received within a reasonable time the assessee may have to file writ before the High Court (read more)

Where the assessee has obtained an insurance premium for its employees, the same is deductible under section 37 of the Income-tax Act, 1961 (Act). This has been upheld by various High Courts, including the Hon'ble Madras High Court in the case of CIT v. Coimbatore Premier Corpn. (P.) Ltd. [2000] 244 ITR 753 (Madras). As… (read more)

Sir, The Question asked by you cannot be answered routinely based only upon the information provided. If the parties that are disputing the property claims are getting in touch with you, I strongly suggest that you contact a local lawyer who will be able to guide you better based on the papers that you may… (read more)

As per Section 4(2) of VSVA, upon the filing the declaration, any appeal pending before the Commissioner (Appeals) shall be deemed to have been withdrawn from the date on which certificate is issued by the designated authority. After receipt of certificate the assessee may make an application to the CIT (A) enclosing the copy of… (read more)

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)