The issuance of right shares by a closely held company does not result in a taxable transaction. The Hon’ble Income-tax Appellate Tribunal in the case of Sudhir Menon HUF v. ACIT [2014] 45 taxmann.com 176 (Mumbai), DCIT v. Smt. Mamta Bhandari [2019] 108 taxmann.com 207 (Delhi - Trib.) have held that section 56(2)(vii) would not… (read more)

The conversion of a Partnership Firm into a Company does result in dissolution of the Firm. However, as there is no Capital Asset or Stock in trade or both being transferred by the Firm to the Partners, section 9B of the Income-tax Act, 1961 would not be attracted. The shares issued to the partners should… (read more)

As we understand, the assessee had offered income under section 44AD of the Income-tax Act, 1961 (Act). There is no dispute that the assessee falls under the provision of section 44AD of the Act. The Ld. Assessing Officer has also accepted that the assessee’s case falls under the purview of section 44AD of the Act… (read more)

One has to read the land Acquisition Act of Kerala Govt . If the said Act contains a specific section exempting the capital gain on acquisition of land then the assessee need not pay the capital gains tax. It may be desirable to consult the tax consultant , who can guide properly after studying all… (read more)

It seems the order is passed u/s 154 of the Income -tax Act , the assessee may have to file an appeal before the CIT (A) . (read more)

1.The Assessing Officer cannot make addition in the assessment without having any incriminating documents . There are number of judgements . Refer. Jami Nirmala (Smt.) v .PCIT (2021)437 ITR 573 (Orissa) (HC),PCIT v. Jaypee Financial Services Ltd ( 2021 ) 282 Taxman 475 ( Delhi )(HC), Sri Sai Cashews v. CCIT(2021) 438 ITR 407/ 205… (read more)

As per Rule 18BBB of the Income-tax Rules, 1961 (Rules), Form 10CCB has been prescribed for assessee’s claiming deduction under section 80I, 80IA, 80IB or 80IC of the Income-tax Act, 1961 (Act). However, there is no prescribed Form under the Scheme of the Act for availing deduction under section 80IAB of the Act. (read more)

Assuming all the conditions under the Companies Act, 2013 are fulfilled. Section 115QA of the Income-tax Act, 1961 (Act) shall be applicable on buy back of shares by an unlisted company. The tax liability will be on the Company. The difference between the Market value of the share and the issue price will be the… (read more)

Yes, the assessee can claim the benefit of indexation while computing long-term capital loss. Long-term capital loss can only be set off against long-term capital gain. If there is any surplus Long-term capital loss the same can be carried forward for 8 years. (read more)

As we understand, ABC has purchased equity shares of XYZ. The Books of ABC will demonstrate investment in equity shares of XYZ. Equity shares are not subjected to depreciation. Therefore, ABC cannot claim depreciation on the amount paid to acquire equity shares. (read more)