The assessee is a private limited company engaged in the business of manufacturing of machinery required for construction activity. The intrinsic value of its shares is Rs. 150/- (Face value Rs. 10/-). The FMV of the shares is Rs. 200/-. The company is issuing right shares to the existing shareholders at par i.e Rs. 10/- per share. What are the tax implications of this transaction under Income Tax Act as well as Companies Act? Please Guide

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Finance Act 2021 has introduced new provision of taxation on transfer of capital asset or stock in trade on dissolution or reconstitution of Partnership Firm and AOP vide new section 9B and amended section 45(4), A conversion of a Partnership firm under Chapter XXI of the Companies  Act 2013 may not result into reconstitution of Firm or AOP. Hence above provisions may not attract ? This would mean that if self generated Gooldwill is bought into firms book by crediting partners capital acount and there after converting this firm into PVT LTD may not attract any tax ? Section 56(2)(10) will be applicable in the hands partners ?

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Assessee is individual and filling return regularly by offering income U/sec. 44AD . During the  course of assessment proceedings assesee submitted the summary of cash account and bank account deposits in bank account is less than the Turnover also submitted statement of affairs .Assessing Officer has added entire turnover as unexplained receipts u/sec. 69A of the Act on the ground that assessee has not given the evidence of items traded and proof of sales . Is  the action of AO is correct , he has not given any show cause Notice in this context.  Pl guide

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Dear Sir, A portion of my land which is non agricultural was acquired by the Govt.of Kerela for construction of a bridge in 2017. During this time they had verbally mentioned that this was tax free.  They gave me the compensation for the land acquired, but now I am being told that I have pay capital gain tax for this. Can i just ignore this and avoid paying tax for this compulsory acquisition of non agricultural land? This is really unfair that the govt. takes land forcefully from people and then we are forced to pay tax on compensation given by the govt. due to the loss incurred for us. Please advise on this.

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Dear Experts I have filed VSVS 2020 scheme for AY 2017-18 and paid all dues, form-4 issued to me, now department ask 25 % surcharge on unexplained money since while preparing the computation of income the surcharge @ 25% not levied  and the agriculture income was not considered for rate purpose in computing the tax. A order under section 154/147/142(1) issued to me and demand under section 156 for tax with interest and penalty. I ask to experts that what remedy remain for me, can I challenge this order before Commissioner Appeal or since I have adopted VSVS 2020 then I have not option to pay surcharge without interest and penalty because interest and penalty not considered in VSVS scheme.

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Assessee is an Individual engaged in the retail business and disclosing his income u/SEc. 44AD of the Income tax. Assessee has made the booking of flat with builder. On the basis of some noting on the loose paper found during the course of search with the builder and on the basis of his statement U/Sec. 132(4) about acceptance of On Money from flat holders, Notice U/Sec. 153C was served. Assessee filed returns for 6 A.Y. and asked for the copies of seized papers, statement of builder and opportunity of cross examination. However the opportunity of cross examination the builder does not turn up and A.O. provided the declaration given by builder stating that what ever he has said in the statement U/Sec. 132(4) and accepted by him is truth. The Assessing officer made the addition on the basis of noting on the seized paper on account of On Money and also made addition on the ground that assessee has not explained the nature of business, type of products traded and copies of sales bills etc. in support of its income U/Sec. 44AD and therefore the claim of turnover cannot be characterized as business receipts to qualify for presumptive tax scheme and made the addition of entire turnover disclosed by assessee as unexplained receipts u/s 69A of the Act and taxed the same u/s 115BBE for the 6 years. Whether assessing officer can make addition in the assessment completed u/s 153C r.w.s 143(3) without having any incrementing material about his business the income for which is offered u/s 44AD ? Whether action of assessing officer adding the entire gross receipts u/s 69A on the ground that assessee has not explained the nature of business, type of products traded and copies of sales bills etc. in support of its income U/Sec. 44AD. Whether addition made on the basis of noting and the statement of builder about acceptance of on money is justified? Whether denial of opportunity to cross examine the builder on the ground of his declaration about whatever stated by him in the statement u/s 132(4) is true, is justified and legally correct ?

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In case of Builders 100% deduction is allowable under section 80IBA. Is there any form  to be uploded duly certified by CA like form 10CCB? To the best of my knowledge no such form is prescibed. However in the faceless scrutiny the department is asking for above form

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Assessee company is a private limited company and has issued its shares of Rs. 100/- each fully paid up at a premium of Rs. 80/- in the year 2010. As on today the value of the shares is Rs.500/-. the articles of association of the company has a clause for giving option in case of transfer of shares by any shareholder to the existing shareholders only. None of the existing shareholder are ready to buy the said shares from the shareholder who is interested in selling. In this situation can company being a private limited company buy back the shares at  same value on which those have been issues i.e Rs.180/-? What will be tax implication under income tax act?

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Assessee is a company, who has invested in a share of unlisted public company in the year 2006 having total cost Rs. 42,00,000/-. In the month of October 2020, the assessee company has received a letter informing them about capital reduction pursuant to resolution plan  approved by Hon’ble NCLT and informed that entire existing, issue, subscribed and paid up share capital of said unlisted public company held by existing share holders stands cancelled and extinguished. Therefore, the value of shares of the said unlisted public company becomes Zero. Issues: Whether the assessee company can take the benefit of indexation  of the investment in shares made in the year 2006 for Rs. 42,00,000/- and compute a long term loss after taking into account indexed cost?  Whether such loss as worked out above can be set off against the long term capital gain from sale of land in the same year ? Please Guide.

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Dear Sir, A company named ABC has bought 100% of the equity capital of a private limited company named XYZ. XYZ has no assets or liabilities other than a mining lease allotted by the Government. The mining lease is a valuable asset as it gives XYZ exclusive and monopoly rights. The agreement between ABC and the sellers of the shares of XYZ makes it clear that the only reason ABC has bought the shares is to acquire control over the mining lease. Can ABC claim that the amount paid for acquiring the shares should be treated as amount paid for acquiring the lease and should be allowed depreciation. In other words, the submission is that the corporate veil should be lifted and the real transaction i.e. acquiring the mining lease, should be seen for purposes of grant of depreciation. It will be greatly appreciated if your Honours can advice and also cite some case laws to support the submission. With best regards, CA Asit Baran

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