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Some of the queries asked by people are given below.

Charitable Trust , all members retire , Incoming members paying to outgoing members by way of gift , tax implication of such transaction? . Whether Society will loose the exemption?
Excerpt of query:	In case of a charitable society running educational institution, if all the members of the society, retire and new members are introduced the executive body is also replaced by the new members. However, this being a commercial deal, the incoming members desire to pay the outgoing members say by way of gift through account payee cheques. In such a situation can incoming members pay to the outgoing members directly. The outgoing members are in the tax bracket of 30% plus surcharge, then what will be the implication of such transaction, and whether society will lose its character of being a charitable organization? read more

Charitable Trust , all members retire , Incoming members paying to outgoing members by way of gift , tax implication of such transaction? . Whether Society will loose the exemption?

Excerpt of query:

In case of a charitable society running educational institution, if all the members of the society, retire and new members are introduced the executive body is also replaced by the new members. However, this being a commercial deal, the incoming members desire to pay the outgoing members say by way of gift through account payee cheques. In such a situation can incoming members pay to the outgoing members directly. The outgoing members are in the tax bracket of 30% plus surcharge, then what will be the implication of such transaction, and whether society will lose its character of being a charitable organization?

Partnership firm, stock in trade , retiring partners ?
Excerpt of query:	The assessee is a partnership firm constituted by four partners having mainly stock in trade. The firm is reconstituted two partners of the firm have retired. The retiring partners are given stock in trade as their share the questions are as under: (i) The stock in trade given to the outgoing partner will be subject to capital gain or business profit, and it will be taxable in whose hands that is the hands of firm or the outgoing partner? (ii) The second question is , will it be capital gains or business profit, and income tax that has been paid, weather will be added to the cost of remaining assets available in the ballot sheet of the firm. Although large amount of stock entry will still be available with the continuing firm? (iii) Will the situation will change if the stock in trade is only available and there is no capital asset what will happen in that scenario? read more

Partnership firm, stock in trade , retiring partners ?

Excerpt of query:

The assessee is a partnership firm constituted by four partners having mainly stock in trade. The firm is reconstituted two partners of the firm have retired. The retiring partners are given stock in trade as their share the questions are as under: (i) The stock in trade given to the outgoing partner will be subject to capital gain or business profit, and it will be taxable in whose hands that is the hands of firm or the outgoing partner? (ii) The second question is , will it be capital gains or business profit, and income tax that has been paid, weather will be added to the cost of remaining assets available in the ballot sheet of the firm. Although large amount of stock entry will still be available with the continuing firm? (iii) Will the situation will change if the stock in trade is only available and there is no capital asset what will happen in that scenario?

Distinction between “Burden of Proof” and “Onus of Proof”
Excerpt of query:	What is a distinction between “Burden of Proof” and “Onus of Proof”? read more

Distinction between “Burden of Proof” and “Onus of Proof”

Excerpt of query:

What is a distinction between “Burden of Proof” and “Onus of Proof”?

Character of land at the time of sale- Agricultural land converted as NA -Capital gains -Valuation?
Excerpt of query:	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. read more

Character of land at the time of sale- Agricultural land converted as NA -Capital gains -Valuation?

Excerpt of query:

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.

One Time Deposit for future maintenance
Excerpt of query:	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? read more

One Time Deposit for future maintenance

Excerpt of query:

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?

Loan to subsidiary – capital loss
Excerpt of query:	Whether the loan given to the subsidiary company is a “capital asset” within the meaning of section 2(14) of the Income Tax Act and any loss incurred on “assignment” of such debt to the third party can be claimed as a short term capital loss? read more

Loan to subsidiary – capital loss

Excerpt of query:

Whether the loan given to the subsidiary company is a “capital asset” within the meaning of section 2(14) of the Income Tax Act and any loss incurred on “assignment” of such debt to the third party can be claimed as a short term capital loss?

Admission by third party to buy peace
Excerpt of query:	Assessee is an individual and purchase flat with one developer . During the course of search at builder , some loose papers were found where noting about on money were recorded. The builder has stated that these noting are in respect of extra work carried out by contractor for flat holders and developer is only conduit between flat purchaser and contractor and has not received any money. However to avoid the litigation and buy peace he is accepting the noting and accordingly addition is made in the hands of builder . On the basis of such acceptance and assesssment order of developer of the project AO has proposed to make addition in the hands of the assessee. assessee has requested the AO to give full details and statement and opportunity of cross examination of person and has objected to the proposed addition on the ground AO has provided the copy of seized paper and copy of assessment order of developer and his submission made where is he has accepted the addition to buy peace and avoid litigation. And has made addition in the hand of assessee. is the action of AO is justified ? Is there judicial support for contention of the assessee that no addition can be made on the basis of conditional acceptance of other persons assessment order or any other ground where Assessee can challenged the order . read more

Admission by third party to buy peace

Excerpt of query:

Assessee is an individual and purchase flat with one developer . During the course of search at builder , some loose papers were found where noting about on money were recorded. The builder has stated that these noting are in respect of extra work carried out by contractor for flat holders and developer is only conduit between flat purchaser and contractor and has not received any money. However to avoid the litigation and buy peace he is accepting the noting and accordingly addition is made in the hands of builder . On the basis of such acceptance and assesssment order of developer of the project AO has proposed to make addition in the hands of the assessee. assessee has requested the AO to give full details and statement and opportunity of cross examination of person and has objected to the proposed addition on the ground AO has provided the copy of seized paper and copy of assessment order of developer and his submission made where is he has accepted the addition to buy peace and avoid litigation. And has made addition in the hand of assessee. is the action of AO is justified ? Is there judicial support for contention of the assessee that no addition can be made on the basis of conditional acceptance of other persons assessment order or any other ground where Assessee can challenged the order .

The assessee HUF consist of husband H, wife W, Daughter D, and minor son S. It is assessed to I.T. Act. The husband A expire in a road accident on 10.04.2023
Excerpt of query:	Query: (i) Whether HUF will continue? (ii) Who will be karta of HUF as the male member is minor? (iii) Can the partition be made by the karta? read more

The assessee HUF consist of husband H, wife W, Daughter D, and minor son S. It is assessed to I.T. Act. The husband A expire in a road accident on 10.04.2023

Excerpt of query:

Query: (i) Whether HUF will continue? (ii) Who will be karta of HUF as the male member is minor? (iii) Can the partition be made by the karta?

In the business premises of A, survey took place, where-in excess stock was found for ` 15 lakh. In the statement recorded during the course of survey the assessee stated that excess stock is due to adjustment of profit by valuation of stock in earlier years and offered for tax in the current year.
Excerpt of query:	Query:- (i) Can the surrender of stock be treated as undisclosed u/s 69 of the Act? (ii) Application of section 115 BBE is correct in law or it can be treated as business income taxable at normal rate? (iii) Is it possible to apply 115BBE by passing 154 order when section 69 is not applied? read more

In the business premises of A, survey took place, where-in excess stock was found for ` 15 lakh. In the statement recorded during the course of survey the assessee stated that excess stock is due to adjustment of profit by valuation of stock in earlier years and offered for tax in the current year.

Excerpt of query:

Query:- (i) Can the surrender of stock be treated as undisclosed u/s 69 of the Act? (ii) Application of section 115 BBE is correct in law or it can be treated as business income taxable at normal rate? (iii) Is it possible to apply 115BBE by passing 154 order when section 69 is not applied?

Non -Resident -Purchase of Residential property – Exemption – S-54
Excerpt of query:	Mr Headache is a Non Resident Indian bought a house at Delhi, from original allottee in 2020. The registry and delivery of possession is given by the builder in November 2021 in the name of Headache’s wife Mrs Migraine, as the stamp duty chargeable to ladies have concessional rate for total consideration of Rs 2 cr. Mr Headache sold his inherited house in Maharashtra in October 2022 where he made a capital gain of Rs 90 lakh chargeable to Income Tax. He has following query Is it allowed in FEMA to purchase a residential house in India by an NRI? What are the implication of Benami Transactions Act for purchase of house in the name of spouse? Can he claim exemption under section 54 for purchase of house against the sale of house in Maharashtra? read more

Non -Resident -Purchase of Residential property – Exemption – S-54

Excerpt of query:

Mr Headache is a Non Resident Indian bought a house at Delhi, from original allottee in 2020. The registry and delivery of possession is given by the builder in November 2021 in the name of Headache’s wife Mrs Migraine, as the stamp duty chargeable to ladies have concessional rate for total consideration of Rs 2 cr. Mr Headache sold his inherited house in Maharashtra in October 2022 where he made a capital gain of Rs 90 lakh chargeable to Income Tax. He has following query Is it allowed in FEMA to purchase a residential house in India by an NRI? What are the implication of Benami Transactions Act for purchase of house in the name of spouse? Can he claim exemption under section 54 for purchase of house against the sale of house in Maharashtra?

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