The said loss would be a Capital loss. Reliance is placed on the decision of the High Court of Calcutta in the case of Calcutta Iron & Engg. Co. (P.) Ltd. v. CIT [1993] 69 Taxman 549 (Calcutta) where Assessee suffered loss of raw materials and other fixed assets on account of burglary in its… (read more)

In case of TDS when there is a doubt it is desirable to deduct the TDS . The Tribunals have taken the view that if the payee has filed the return and paid the tax no disallowance can be made ,however the interest is leviable .Refer , Surat District Co-op. Milk Producer’s Union Ltd. v.… (read more)

The individual who is a non-resident Indian (Assuming he is a non-resident as per Article 4 of DTAA) would be a resident of another jurisdiction as per the DTAA between India and the other jurisdiction. The source jurisdiction will withhold tax and the exemption/credit of the same will be available in the other jurisdiction as… (read more)

Commission to Insurance agent is covered under RCM as per notification no.13/2017 Central Tax (Rate) dated 28.6.2017. Therefore, agent is not required to obtain registration and other formalities under GST not applicable to agent. However, if the relationship is not as an agent, then the assessee will be liable for GST registration as gross receipts… (read more)

As we infer, the assessee was awarded a sum which includes his own capital and a sum of interest as hardship compensation and liquidated damages. The same can be treated as a Capital receipt not exigible to tax under the scheme of Income-tax Act, 1961 (Act) The Hon’ble Supreme Court in the case of PCIT… (read more)

If the photographs or video is shot by a professional, the same would be considered to be art work and as a professional work. However, the same does not fall within the definition of “professional services under section 194J of the Income-tax Act, 1961 (Act). Therefore, the art work and photography would not come within… (read more)

Under GST transactions of supply are liable to tax. The scope of ‘supply’ as given in section 7 is very wide. Normally, the receipts from any party will amount to receipts towards supply, may be supply of goods or service. The investor is making investment for return on the investment made. It appears that there… (read more)

If it is debatable issue , proposed action is not valid . It may be desirable to file writ before High Court .Refer T.S. Balaram, ITO v. Volkart Bros. ( 1971) 82 ITR 50 ( SC), Dinosaur Steels Ltd. v. JCIT (2012) 349 ITR 360/80 DTR 217/254 CTR 640 (SC). In Cooperative Rabobank U A… (read more)

The Section 24 of Prohibition of Benami Property Transactions Act, 1988, makes it mandatory for the Initiating officer to issue a show cause notice upon the alleged 'benamidar' or the 'beneficial owner' to show cause within such time as may be specified in the notice why the property should not be treated as benami property.… (read more)

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)