The issue is debatable, It can be argued that the transaction of retirement of a partner and the corresponding book entries were completed before commencement of the new Law. Hence the new law is not applicable. (read more)

The Assessee cannot ask for a copy of the recorded reasons, as the same is provided in the form of "information" along with Notice under section 148A of the Act. Yes, the assessee has to object to the "information " which is in the possession of the Ld. AO. In our opinion, the concept of… (read more)

As per section 198 of the Income-tax Act, 1961, the assessee can offer the income to the extent of the TDS and claim a refund of the same. The Hon'ble ITAT - Mumbai Bench in the case of Shri Rangji Realties (P.) Ltd. v. ITO [2017] 82 taxmann.com 456 (Mumbai) held that where in course… (read more)

Tax Authorities can issue the fresh notice as per section 148A of the Act , by following the due process of law, if limitation period is not over. High Courts have quashed the notice issued under section 148 , only on the ground that provisions of section 148A of the Act are not complied with… (read more)

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)