AfterGhanshyam (HUF>[2009] 315 ITR 1 (SC), it was settled thatinterest received on compensation or enhanced compensation under section 28 of Land Acquisition Act, 1894 is not taxable being part of enhanced compensation itself Courts /tribunals have decided in favour of assessee on the basis Ghanshyam(HUF) consistently. However, P & H High Court in Mahender Pal Narang v. CBDT [2020] 120 taxmann.com 400 (Punjab & Haryana) decided against the assessee by relying on sections 56(2) and 57 of the 1961 Act. P & H High court while deciding against the assessee, dissented with Gujarat High Court Movaliya Bhikhubhai Balabhai v. ITO(TDS) [2016] 70 taxmann.com 45/388 ITR 343 (Guj.) Further, Hon’ble Supreme Court in Mahender Pal Narang v. CBDT [2021] 126 taxmann.com 105 (SC) dismissed the SLP by way of non speaking order against the above P & H High Court ruling. What is the correct legal position in this regard?

read more

Is it possible to file an appeal against certain additions and for some other additions approach DRC u/s 245M if all the other conditions of this section are satisfied ?

read more

Whether professional fee paid to obtain Private Equity is a revenue expenditure?.

read more

I am buying and selling unlisted equity shares for more than Five years. In view of circular no. F. No. 225/12/2016/ITA.II dated 2nd May, 2016, I am treating the gains/losses thereon as Capital Gains. I have been consistently been following this system of treating trades in Unlisted shares as Investments and Capital Gains. For year ended 31st March, 2021 my sale of unlisted shares exceeded say 12 Crores. My business turnover from FNO in Listed shares is less than say 3 Crores. As I showing trades in Equity Shares as Capital Gains my turnover from Business is less than 3 Crores. Am I liable to deduct TDS or TCS on purchase and sale of unlisted shares? If YES, then WHY?

read more

A number of corporate organizes competition based on real world problems. The topics are like: The corporate will have a panel ,who will judge the best solution and accordingly prize money will be awarded. i am attaching the paper of one such competition from gsk pharmaceuticals ltd. i wanted to know, whether these receipts also will be considered for the purpose of section 115bb in the hands of recipient .In my opinion, these receipts are not  lottery, nor any games or race. so it should not be taxed under section 115bb but should be in the normal course with the exemption benefit and slab rates. will be highly obliged to receive a earliest reply

read more

Whether brought forward non speculative business loss can be adjusted against current year’s income from speculation?

read more

My client met with an accident in R.T. Nagar, Bangalore about 2 years back whose leg has been amputated in Columbia Hospital, Hebbal, Bangalore.  The Court has awarded compensation of about Rs.12 lakhs which is still in the Court and the Court has not released the amount till date (17-5-2021). 2. I request you to please let me know:- a) Whether the compensation receivable from the Court has to be offered to tax for the Assessment Year 2021-22, b) Whether the compensation amount is taxable or exempt from tax.  T.D.S. has been made by the BMTC Department. Kindly clarify. email ID:  mnshank@gmail.com Mobile No.9448505885

read more

Dear Sir, Ma’am, the query is as follows – Both Section 44AD and Section 44ADA prescribe a minimum threshold of declaration of income of 6%/8% and 50% of the turnover respectively in order to opt for presumptive taxation scheme, otherwise tax audit becomes applicable. These provisions also allow the assessee to declare income higher than the prescribed limit of 6%/8% and 50% in the return of income. A question arises whether declaring such higher income is compulsory in case where the actual income of the Assessee exceeds these threshhold limits or can the assessee continue to opt to declare income only on the basis of the prescribed limit ? If yes, then the capital accrual of the Assessee in the form of savings shall exceed the income declared in ITR and it may become hard to explain high-value expenditure. For e.g – Assessee engaged in profession has a turnover of INR 45 lakhs from business & profession chooses to declare income @50% i.e. INR 22.5 lakhs in the income tax return. However, his actual income is INR 42 lakhs and he uses this actual income to purchase a house worth INR 30 lakh. If questioned by the income tax department regarding the source of such expenditure, he will find it difficult to explain income of INR 22.5 lakhs while expenditure is INR 20 lakhs Conversely if the answer is no, then the presumptive taxation scheme becomes redundant since the Assessee is anyways required to compute his actual income and also maintain books of accounts to support such calculations which does not appear to be the intent of these provisions.

read more

Dear Sir. While adopting Ind AS, the company provided for Expected credit loss by adjusting from the retained earnings in the opening balance sheet as at 1st April, 2016. No claim for write off was claimed under Income Tax in the Income Tax Return. Now, in the current financial year, the company has recovered the entire amount from the company under the settlement arrived at with the company to whom advance was made. Now, if we show the amount recovered as Other Comprehensive Income , I feel that  then neither  it need to be first shown as income and then deduction. Some people feel that, the amount recovered should be shown in the main body of profit and loss statement and the amount shall be reduced from the taxable income. I seek your kind guidance in the matter. Regards. O.P. Saraswat

read more

Property is taken in the name of wife but cost borne by husband,the property is rented and proceeds credited to wife accounts….in whose hand will it be taxable….whether clubbing provisions will be applicable

read more