Company A has transferred a depreciable capital asset to its wholly owned subsidiary company B during the year 2018. The WDV value in the hands of the company A as on date of transfer is Rs. 10 crs. As per the independent valuer report the value of the said asset is Rs. 8 crs. The company B has been claiming depreciation on WDV value of 10 crs. During the year (June 2020), company A ceased to hold 100% shareholding in company B. a) How to give effect to provisions of S. 47A and S. 49(3). Alternatively, would the situation be…
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An individual purchased a second house property in December 2018 for a total consideration of Rs. 1.15 crores The individual borrowed a home loan from a nationalized bank to the extent of Rs. 1.20 crores. The individual received the possession of the house in April 2020 and he started occupying the house from June, 2020 In December 2020, the individual sold the shares of a private limited company for a total consideration of Rs. 2 crores. (cost of acquiring the shares was negligible and shares were held since 2014). Out of the money received from sale of shares, the individual…
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A company’s one of the unit is set up in a “Special Economic Zone”. The company has claiming tax holiday for last 5 years out of 15 years with respect to SEZ profits and has created the “SEZ Reinvestment Reserve” as per section 10AA(ii) of the Act. Now the management of the company would like to utilize, without losing the tax holiday, the said SEZ Reinvestment Reserve for the following a) Acquiring assets for their other businesses unit. b) Acquire motor cars for SEZ units.
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ABC P. Ltd is engaged in business of rendering IT related services. ABC Ltd has formed wholly owned subsidiaries in USA (PQR Inc) and Dubai (STU FEZ Ltd) to bill transactions to its foreign customers. Promoter and majority of directors in foreign subsidiaries resides in India. However KMP’s of the said companies are based out of India and are on the Board of those companies. Management of ABC Ltd seek your opinion in regards to applicability of POEM of two foreign subsidiaries.
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A Limited has adopted IND AS for the first time in assessment year 2021/22. During the assessment year, company found that there were certain mistakes in the earlier years. Therefore, it rectified the error by recording prior period expenses and as well as income. The said prior period adjustments have been routed through “Other equity and not through Other comprehensive income” as per IND AS – requirements. Whether, can AO make the adjustments while making the assessment under MAT?
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What should be the situs of an intangible asset in case of transfer of an intangible asset?
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An individual assessee sold residential property, held for more than two years, during F.Y. 21-22. He invested the capital gain in residential property during the F.Y. 22-23 i.e. on June 30, 2022 and availed , the benefit of S. 54. Now, the assessee intends to gift the newly acquired residential property to his son i.e. before three years from the date of acquisition. Will there be any implication on claim of deduction under section 54 ?
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What is a distinction between “Burden of Proof” and “Onus of Proof”?
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A is holding rural agricultural land since before 2001. Subsequently he has converted such land as NA land and now sold it. Question is which value should be consider for 2001? Agriculture land value or NA land value? Any other suggestion for computation of capital gains.
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Assessee is promoter and Builder. During the course of carrying of business, assessee accepted one time deposit from flat purchaser for future maintenance of the building. AO is of the opinion that it is taxable in the year of receipt, where as assessee is saying that is not taxable in his hands as assessee is only custodian and after deduction of expenses incurred for maintenance, will be handover the balance to society. What is the correct position?
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Transfer of depreciable capital asset ?