If the house property is shown as the property of the Husband though the sale deed in the name of the wife , the assesse can claim the interest paid on the loan borrowed for acquisition of the House property .One has to verify who has paid other contribution such as initial payment to builder… (read more)

As per Board Circular No No. 6-P dated July 1968, (C& P Vol .2 -P. 2431 -32 ) no disallowance was to be made under sec. 40A(2) in respect of payment made to the relatives and sister concern where there was no attempt to evade tax. After referring the Circular, Bombay High Court in CIT… (read more)

It is a well settled position in law that assessment cannot be made in the name of a non-existing entity. The Hon’ble Supreme Court in the case of PCIT v. Maruti Suzuki India Ltd. [2019] 107 taxmann.com 375 (SC) where during pendency of assessment proceedings, assessee company was amalgamated with another company and thereby lost… (read more)

Section 54F of the Income-tax Act, 1961 (Act) is a beneficial provision granting exemption to the assessee. The Hon’ble Karnataka High Court in the case of CIT v. Smt. B.S. Shanthakumari 2015] 60 taxmann.com 74 (Karnataka)where assessee sold a property on 6-10-2008 and purchased another residential plot on 13-10-2008 and commenced construction, which was not… (read more)

Courts have held that the completed assessment could not be abated unless some incriminating evidence or material was found during search qua additions made by Assessing Officer . Refer following case laws; PCIT v. Caprihans India Ltd. (2020) 114 taxmann.com 103 (Bom.)(HC) CIT v. Deepak Kumar Agarwal ( 2017) 398 ITR 586/299 CTR 62/ 251… (read more)

Where income of any member of AOP exceeds the maximum amount which is not chargeable to income-tax (i.e., basic exemption limit), the AOP shall be taxed at Maximum Marginal Rate i.e., 30 per cent plus surcharge and HEC as applicable. (read more)

Section 45(5A) of the Income-tax Act, 1961 was introduced vide Finance Act, 2017. According to the Memorandum explaining the provisions of the Finance Bill, 2017, these provisions were introduced to minimize the hardship faced by Land Owners when they enter into a Joint Development Agreement with a Developer, so that the transfer of land to… (read more)