Thank you for your question – Page 103

Thank You

Thank you for your question. We will forward it to an expert in our panel. The experts opinion will be made available shortly. Please visit the main page after some time to read the answer to your question.

Some of the queries asked by people are given below.

TDS DEDUCTED IN ONE ASSESSEE BUT TO BE CLAIMED IN ANOTHER ASSESSEE
Excerpt of query:	DURING AY 2017-18, PROPREITORSHIP FIRM WAS CLOSED AND PVT LTD COMPANY WAS FORMED. ALL THE WORK/CONTRACT WERE EXECUTED AND UNDERTAKEN IN PVT LTD COMPANY, BUT THE CONTRACTOR DEDUCTED TDS IN INDIVDUAL/PROPRIETORSIP FIRM. THE INDIVIDUAL IN HIS RETURN HAS NOT OFFERED ANY CONTRACT INCOME AND ALSO NOT CLAIMED THE TDS REFLECTED IN HIS FORM 26AS. AND THE PVT LTD COMPANY HAS OFFERED ALL THE INCOME AND ALSO CLAIMED TDS WHICH IS REFLECTED IN FORM 26AS OF INDIVIDUAL. ASSESSMENT PROCEEDING U/S 143(3) OF PVT LTD COMPANY FOR SAID AY UNDERTAKEN, WHEREIN NO ADDITION WAS MADE AND RETURNED INCOME WAS ACCEPTED. BUT IN COMPUTATION SHEET TDS CREDIT WAS NOT GRANTED AND DEMAND WAS RAISED. IN RETURN OF INCOME OF AY 2017-18, THERE IS NO OPTION TO CLAIM TDS PERTAINING TO OTHER PAN (OPTION OF SELF/OTHER PAN) LIKE THE OPTION AVAILABLE IN RETURN UTILITY OF AY 2020-21 AND 2021-22. PLEASE ADVISE WHAT STEP IS REQUIRED TO BE TAKEN BY PVT LTD COMPANY, GIVEN THE FACT THAT THE CONTRACTORS ARE NOT IN POSITION TO RECTIFY THERE TDS RETURN? read more

TDS DEDUCTED IN ONE ASSESSEE BUT TO BE CLAIMED IN ANOTHER ASSESSEE

Excerpt of query:

DURING AY 2017-18, PROPREITORSHIP FIRM WAS CLOSED AND PVT LTD COMPANY WAS FORMED. ALL THE WORK/CONTRACT WERE EXECUTED AND UNDERTAKEN IN PVT LTD COMPANY, BUT THE CONTRACTOR DEDUCTED TDS IN INDIVDUAL/PROPRIETORSIP FIRM. THE INDIVIDUAL IN HIS RETURN HAS NOT OFFERED ANY CONTRACT INCOME AND ALSO NOT CLAIMED THE TDS REFLECTED IN HIS FORM 26AS. AND THE PVT LTD COMPANY HAS OFFERED ALL THE INCOME AND ALSO CLAIMED TDS WHICH IS REFLECTED IN FORM 26AS OF INDIVIDUAL. ASSESSMENT PROCEEDING U/S 143(3) OF PVT LTD COMPANY FOR SAID AY UNDERTAKEN, WHEREIN NO ADDITION WAS MADE AND RETURNED INCOME WAS ACCEPTED. BUT IN COMPUTATION SHEET TDS CREDIT WAS NOT GRANTED AND DEMAND WAS RAISED. IN RETURN OF INCOME OF AY 2017-18, THERE IS NO OPTION TO CLAIM TDS PERTAINING TO OTHER PAN (OPTION OF SELF/OTHER PAN) LIKE THE OPTION AVAILABLE IN RETURN UTILITY OF AY 2020-21 AND 2021-22. PLEASE ADVISE WHAT STEP IS REQUIRED TO BE TAKEN BY PVT LTD COMPANY, GIVEN THE FACT THAT THE CONTRACTORS ARE NOT IN POSITION TO RECTIFY THERE TDS RETURN?

Reassessment proceedings U/Sec.148
Excerpt of query:	The assessee is a Charitable Trust engaged in running a Primary School solely for educational purposes. The only income earned is by the way of Tuition Fees from student and Interest income. The assessee trust had its original return on 19.08.2016. and revised return of income for A.Y. 2016-17 on 26.06.2017, where there were lots of errors and the claims which were incorrect. such as assessee trust has claimed the the trust is registered U/Sec.12AA by quoting incorrect registration number, when the trust was not having registered U/Sec.12AA of the Act. The AO served notice under section 148 in response to which assessee has filed fresh return on 24.10.2019, claiming deduction u/s 10(23C)(iiiad) of the Act, as the trust exists wholly for educational purposes and not for the purpose of profit. The AO had not appreciated the return filed u/s 148 by the appellant wherein the appellant had claimed that they are eligible for exemption u/s 10(23)(iiiac) of the Act and had proceeded to treat the cash deposit amounting to Rs. 19,78,125/- as unexplained money u/s 69A of the Act and taxed as per provisions of section 115BBE of the IT Act,1961 passing the order u/s 147 r.w.s 144B of the Act without appreciating various submissions made by the appellant from time to time. Whether the Action of AO of Passing an order on the basis of return filed u/s 139 of the Act and ignoring the return filed in response to notice u/s 148 of the Act is correct and legally valid. kindly guide. read more

Reassessment proceedings U/Sec.148

Excerpt of query:

The assessee is a Charitable Trust engaged in running a Primary School solely for educational purposes. The only income earned is by the way of Tuition Fees from student and Interest income. The assessee trust had its original return on 19.08.2016. and revised return of income for A.Y. 2016-17 on 26.06.2017, where there were lots of errors and the claims which were incorrect. such as assessee trust has claimed the the trust is registered U/Sec.12AA by quoting incorrect registration number, when the trust was not having registered U/Sec.12AA of the Act. The AO served notice under section 148 in response to which assessee has filed fresh return on 24.10.2019, claiming deduction u/s 10(23C)(iiiad) of the Act, as the trust exists wholly for educational purposes and not for the purpose of profit. The AO had not appreciated the return filed u/s 148 by the appellant wherein the appellant had claimed that they are eligible for exemption u/s 10(23)(iiiac) of the Act and had proceeded to treat the cash deposit amounting to Rs. 19,78,125/- as unexplained money u/s 69A of the Act and taxed as per provisions of section 115BBE of the IT Act,1961 passing the order u/s 147 r.w.s 144B of the Act without appreciating various submissions made by the appellant from time to time. Whether the Action of AO of Passing an order on the basis of return filed u/s 139 of the Act and ignoring the return filed in response to notice u/s 148 of the Act is correct and legally valid. kindly guide.

Assessment u/sec.148 r.w.s.143(3) of Income Tax Act 1961
Excerpt of query:	Assessee is a charitable trust running a primary school. Assessee trust do not have registration U/sec.12 AA. His consultant has filed the Return of Income by mentioning incorrect number of registration U/sec. 12AA of the Act. Also filed application for registration. His application was rejected by the CIT on the ground of various defects in the financial statement submitted along with ROI and incorrect mentioning of Registration number. Notice u/sec.147 was issued . In response to said notice the assessee trust has filed the Return of Income where in all the errors in earlier Return filed were corrected and since assessee trust is running the school, the Income of the trust is claimed as exempt U/sec. 10 . However the AO has completed the assessment ignoring the Return filed in response to.Notice U/sec.148 completed the assessment by considering the Income of the trust as taxable on the ground that trust does not have registration u/sec.12AA and incorrect Return filed by the trust original. Whether the action of AO ignoring Return filed in response to Notice u/sec. 148 of the Act and denied the legitimate claim for exemption of Income U/sec 10 is justified. Please guide. read more

Assessment u/sec.148 r.w.s.143(3) of Income Tax Act 1961

Excerpt of query:

Assessee is a charitable trust running a primary school. Assessee trust do not have registration U/sec.12 AA. His consultant has filed the Return of Income by mentioning incorrect number of registration U/sec. 12AA of the Act. Also filed application for registration. His application was rejected by the CIT on the ground of various defects in the financial statement submitted along with ROI and incorrect mentioning of Registration number. Notice u/sec.147 was issued . In response to said notice the assessee trust has filed the Return of Income where in all the errors in earlier Return filed were corrected and since assessee trust is running the school, the Income of the trust is claimed as exempt U/sec. 10 . However the AO has completed the assessment ignoring the Return filed in response to.Notice U/sec.148 completed the assessment by considering the Income of the trust as taxable on the ground that trust does not have registration u/sec.12AA and incorrect Return filed by the trust original. Whether the action of AO ignoring Return filed in response to Notice u/sec. 148 of the Act and denied the legitimate claim for exemption of Income U/sec 10 is justified. Please guide.

Applicability of Sec.115BBE
Excerpt of query:	Assessee is partnership firm. DURING the course of Search shortage in stock is found. Assssee has stated that though there is no reason for shortage, as his maintaining stock record , however to avoid litigation partner agree that they will offer income on the value of shortage in stock in the return . However AO is saying he is going to add entire amount of shortage and tax the same by resorting to sec. 115BBE at special rate. Is he is correct . read more

Applicability of Sec.115BBE

Excerpt of query:

Assessee is partnership firm. DURING the course of Search shortage in stock is found. Assssee has stated that though there is no reason for shortage, as his maintaining stock record , however to avoid litigation partner agree that they will offer income on the value of shortage in stock in the return . However AO is saying he is going to add entire amount of shortage and tax the same by resorting to sec. 115BBE at special rate. Is he is correct .

TDS on payment made outside India for settlement of dispute
Excerpt of query:	ABC company of USA has filed civil law suit against XYZ company of India in the court of USA alleging breach of confidentiality and misappropriation of trade secret. Now both the parties have agreed mutually to fully settle the dispute, wherein XYZ company will pay sum of USD 250000 to ABC company, and ABC company will withdraw the case. Q1. whether such payment made by XYZ company will be deductible expense from business income? Q2. Under which section TDS will be applicable and at what rate? Q3. under what expense head such payment should be booked in profit and loss account? read more

TDS on payment made outside India for settlement of dispute

Excerpt of query:

ABC company of USA has filed civil law suit against XYZ company of India in the court of USA alleging breach of confidentiality and misappropriation of trade secret. Now both the parties have agreed mutually to fully settle the dispute, wherein XYZ company will pay sum of USD 250000 to ABC company, and ABC company will withdraw the case. Q1. whether such payment made by XYZ company will be deductible expense from business income? Q2. Under which section TDS will be applicable and at what rate? Q3. under what expense head such payment should be booked in profit and loss account?

S.45(4) and S.9B
Excerpt of query:	There are three partners in a firm. The firm is having two residential properties having high market value compared to cost. No depreciation has ever been claimed on the properties. The firm is carrying business of export and properties are shown as Investments in books of account. One of the partner who was having 80% share in the firm expires. As per deed the share of the said partners goes to remaining partners only. What will be impact under S.45(4) and S.9B of the act. Whether firm will have to pay the tax since there will be reconstitution on account of death of a partner? read more

S.45(4) and S.9B

Excerpt of query:

There are three partners in a firm. The firm is having two residential properties having high market value compared to cost. No depreciation has ever been claimed on the properties. The firm is carrying business of export and properties are shown as Investments in books of account. One of the partner who was having 80% share in the firm expires. As per deed the share of the said partners goes to remaining partners only. What will be impact under S.45(4) and S.9B of the act. Whether firm will have to pay the tax since there will be reconstitution on account of death of a partner?

Is form 15CA and CB required for payment of Dividend credited in rupees in the NRE account in India to NRI
Excerpt of query:	Public limited co making payment of Dividend to NRI share holder. This payment is credited to his NRE account in Indian Rupees. Whether in this situation Form 15 CA and CB is required. Does this amounts to remittance to NRI, even though payment is credited in bank account maintained in India. read more

Is form 15CA and CB required for payment of Dividend credited in rupees in the NRE account in India to NRI

Excerpt of query:

Public limited co making payment of Dividend to NRI share holder. This payment is credited to his NRE account in Indian Rupees. Whether in this situation Form 15 CA and CB is required. Does this amounts to remittance to NRI, even though payment is credited in bank account maintained in India.

Is certificate required to avail exemption on interest on home loan?
Excerpt of query:	I work in a department of govt India. I have borrowed a housing loan and house construction completed. My office has rejected to give me any rebate on income tax and tax being continued to be debited from salary due to no completion certificate available. I read an article in news paper mentioning no certificate is required to avail the exemption on interest on home loan. Can you please guide me which law (section and sub sections) support this fact. You can refer to the link below https://economictimes.indiatimes.com/wealth/tax/mumbai-tax-tribunal-order-a-major-relief-for-home-buyers/articleshow/55128659.cms?from=mdr read more

Is certificate required to avail exemption on interest on home loan?

Excerpt of query:

I work in a department of govt India. I have borrowed a housing loan and house construction completed. My office has rejected to give me any rebate on income tax and tax being continued to be debited from salary due to no completion certificate available. I read an article in news paper mentioning no certificate is required to avail the exemption on interest on home loan. Can you please guide me which law (section and sub sections) support this fact. You can refer to the link below https://economictimes.indiatimes.com/wealth/tax/mumbai-tax-tribunal-order-a-major-relief-for-home-buyers/articleshow/55128659.cms?from=mdr

Procedure for intimation to Registrar of Firms.
Excerpt of query:	A partnership firm was with two partners between Father and Son. Assets of the firm consist of immovable n movable assets. Father expired on 20.08.2020. There is no other member in the family. How to comply the following 1. What deed is to be executed so that relevant form regarding dissolution of firm can be uploaded. 2. How to intimate this to GST authorities and get the number change 3. Will there be any Tax liability U/sec. 45(4) and 9 B of the Act. 4. How to inform Income Tax Authorities about dissolution of Partnership read more

Procedure for intimation to Registrar of Firms.

Excerpt of query:

A partnership firm was with two partners between Father and Son. Assets of the firm consist of immovable n movable assets. Father expired on 20.08.2020. There is no other member in the family. How to comply the following 1. What deed is to be executed so that relevant form regarding dissolution of firm can be uploaded. 2. How to intimate this to GST authorities and get the number change 3. Will there be any Tax liability U/sec. 45(4) and 9 B of the Act. 4. How to inform Income Tax Authorities about dissolution of Partnership

Refiling of appeal
Excerpt of query:	Assessment order was completed u/s 144 of the Act by making an addition of Rs. 20,70,000/- along with demand notice raising demand of Rs. 1,03,62,001/-. In the computation sheet gross total income was considered at Rs. 82,80,000/-. An assessee filed an appeal against the said order before CIT(A). The assessee has also filed an application u/s 154 of the Act pointing the mistake apparent from record in the computation sheet enclosed along with the demand notice. The AO has passed order u/s 154 on 11.02.2020 and reduced the income by Rs. 62,10,000/- and raised the revised demand of Rs. 25,90,455/-. On receipt of rectification order, the AR of the assessee advised him to withdrawn an appeal filed against original order passed u/s 144 by making an application on 19.08.2020. Accordingly, CIT(A) has passed the order allowing withdrawal request of assessee on 20.08.2020. Meanwhile, as per the AR’s advice, assessee has filed an appeal against the order passed u/s 154 wherein the ground has been raised that Ld AO erred in making addition of Rs. 20,70,000/- as undisclosed income u/s 69 of the Act. In this background, whether – (a) Assessee can context the addition of Rs. 20,70,000/- made in the assessment order u/s 144 in an appeal filed against order u/s 154 of the Act? (b) Assessee can file an appeal against an order passed u/s 144 of the Act with delay condonation once again? (c) Assessee can file a petition u/s 264 of the Act against the order passed u/s 144 on 08.12.2019 since he can file within one year from the date of receipt and due to the covid period limitation is extended? Kindly guide! read more

Refiling of appeal

Excerpt of query:

Assessment order was completed u/s 144 of the Act by making an addition of Rs. 20,70,000/- along with demand notice raising demand of Rs. 1,03,62,001/-. In the computation sheet gross total income was considered at Rs. 82,80,000/-. An assessee filed an appeal against the said order before CIT(A). The assessee has also filed an application u/s 154 of the Act pointing the mistake apparent from record in the computation sheet enclosed along with the demand notice. The AO has passed order u/s 154 on 11.02.2020 and reduced the income by Rs. 62,10,000/- and raised the revised demand of Rs. 25,90,455/-. On receipt of rectification order, the AR of the assessee advised him to withdrawn an appeal filed against original order passed u/s 144 by making an application on 19.08.2020. Accordingly, CIT(A) has passed the order allowing withdrawal request of assessee on 20.08.2020. Meanwhile, as per the AR’s advice, assessee has filed an appeal against the order passed u/s 154 wherein the ground has been raised that Ld AO erred in making addition of Rs. 20,70,000/- as undisclosed income u/s 69 of the Act. In this background, whether – (a) Assessee can context the addition of Rs. 20,70,000/- made in the assessment order u/s 144 in an appeal filed against order u/s 154 of the Act? (b) Assessee can file an appeal against an order passed u/s 144 of the Act with delay condonation once again? (c) Assessee can file a petition u/s 264 of the Act against the order passed u/s 144 on 08.12.2019 since he can file within one year from the date of receipt and due to the covid period limitation is extended? Kindly guide!

Latest Judgements

Latest Articles

Categories

Recent Posts

Meta