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)

File writ petition before High Court . High Court may direct the revenue to refund the amount with interest . (read more)

1. Yes, Partition of an HUF need not be equal. The largest share would be exempted from Stamp Duty. 2. The wife of the karta, can be a member of the HUF but not a coparcener of her husband’s HUF. A coparcener cannot ask for partition of the HUF. The wife of the karta can… (read more)

There is a formula provided under section 45(4) of the Income-tax Act, 1961 (Act) for computation of capital gains. According to it, any excess received over and above the capital balance would amount to Capital Gains. The Firm is liable to tax on the excess paid to the partners over and above the capital balance… (read more)

Merely on the basis of certain documents found in the third party premises the addition cannot be made . The provision of section 132 (4A) and section 292C is not applicable in respect of documents found in the third party premises . In Dy.CIT v .GSNR Rice Industries Pvt. Ltd (2021) 90 ITR 114 /… (read more)

Search assessment are excluded from the provisions of section 148A of the Income-tax Act, 1961 (Act). Further, it is also deemed that the Ld. Assessing Officer has information that suggests that income has escaped assessment. Further, by virtue of first proviso to section 149 of the Act, the Assessment years that could not have been… (read more)