whether allowable or not ?

read more

I have received IT department’s summons under section 131(1A) for AYs 2016-17 and 2017-18 requiring me to disclose my financial interest in 2 foreign accounts that I held at that time, one was a foreign brokerage account and the other was a foreign pension account (IRA). I am still holding the brokerage account. As I was RNOR in both these years, hence I did not disclose my foreign income/assets in the IT returns that I filed for these years. Also, I was a NRI for 9 prior years, which is when I opened these accounts and all the funds deposited in these accounts was from my income as an NRI (there were no funds transferred from India to these accounts). Now these summons are asking me to : a) Disclose my investments and also income accrued year wise from these foreign accounts. b) Provide documents evidencing the date of opening of these accounts. c) Summon also states, “If you hold as a beneficial owner/beneficiary/settlor or otherwise, any asset (including any bank account or financial interest in any entity) located outside India, or have signing authority in any account located outside India, please list details of such assets or account located outside India along with supporting documents. Please note that financial interest includes shareholding, directorship, beneficial ownership or other forms of pecuniary interest, directly or indirectly.” I have the following questions in this regard: 1. Regarding point (a) above, Do I need to disclose my investments/income from these accounts, given that I was RNOR for these assessment years and NRI prior to that? If no, then what should my response be? If yes, then for which years should I disclose this information, since the summons mention ‘year wise’? 2. Regarding point (b) above, Do I need to provide evidence of date of account opening, even though the accounts were opened when I was a NRI? 3. Regarding point (c) above, do I need to disclose my foreign accounts/assets even though I was RNOR for these assessment years and NRI prior to that? If no, then what should my response be? If yes, then what account details should be disclosed and for which year/s, viz, only for assessment years or held in prior years and/or later years? Also, what documents do I need to submit? 4. These summons are for AYs 2016-17 and 2017-18, viz, for time periods that are 7 years ago and 6 years ago respectively. How far back can these summons be issued? Thanks in advance for your help!

read more

The assessee is a company wherein in the assessment completed u/s 143(3) of the Act for A.Y 2021-22, addition of Rs. 70,00,000/- was made u/s 68 of the Act on account of unaccounted cash loan repayments on the basis of noting on seize papers found during the course of search conducted in the year 2021-2022. The director of the company has accepted the above referred seize paper noting in his personal capacity. However, AO has made an addition of Rs. 70,00,000/- as undisclosed income in the hands of assessee company and similar addition has been made on the protective basis in the hands of the director of the company. The assessee company has received notice u/s 271E for alleged repayment of loans of Rs. 70,00,000/-. Whether the action of the AO of initiating penalty proceedings u/s 271E is justified in law even though there is no mention of such initiation in the assessment order.

read more

Overseas Tour Package  includes “Expenses incurred on travel Expenses incurred for stay Expenses incurred for boarding or lodging Any expenditure of similar nature or in relation thereto”     Are these cumulative or even any one of them will be called overseas tour package ?       ‘                        

read more

Does it include a flat which is never constructed by a builder even after execution of agreement ? Word “Recd” under this section  means what ?    

read more

Assessee is partnership firm engaged in the business of development of housing project. It started residential housing project in the F.y. 2013-14 and decided to adopt project completion Method for recognizing revenue . In the F.Y. 2013-14 and 2014-15 assessee has not offered any income and capitalized all cost in WIP. In the 2015-16 search u/132 was carried out at business premises , managing partner in the statement recorded u/sec. 132(4) has stated that he was not aware about offering of income on % completion Method and he accepted that he will offer income computed as per Guidence Note issued by ICAI. Accordingly he has offered the income as per percent completion method in FY2015-16 . In the assessment proceedings,  for FY  2014-15 , on the basis of statement given by managing partner U/Sec. 132(4) AO has made addition by rejecting books of accounts u/Sec.145(3) and by estimating income as per percentage completion method. CIt A has also confirm the addition made by AO on the ground that assessee has accepted percentage completion method in the FY 2014-15. Issues 1. Whether action of AO in making an addition in FY 2014-15 on the basis of admission of managing partner u/Sec 132(4) making declaration of adoption of percentage completion method From F.Y. 2015_16 and accordingly offer the income in FY 2015-16. 2. Whether rejection of books of accounts u/Sec. 145(3) is justified on the ground that in the FY 2015-16 assessee has accepted Percentage completion Method.  

read more

Assessee is charitable trust , registered under sec. 12AA of the Act. For the AY2020-21 filed the Return of income , while filling return of income due to some software issue,deduction for expenditure inccured on the object of the trust were not claimed, however it remained unnotice till the trust received Intimation u/sec. 143(1)(a) with huge demand . What is remedy available for the trust to correct this and any decision in this context . Pl guide

read more

  Dear Sir,   If search is conducted in October 2022, can notice u/s 148 for A.Y. 2013-14 and 2014-15 can be issued as incriminating material for A.Y. 2013-14 and 2014-15 has been seized.   Please clarify.   Thanking You,

read more

  Dear Sir,   Please give your opinion on the following: By virtue of decision of SC dated 04.05.2022 in the case of Union of India vs. Ashish Aggarwal. Assessee received notice u/s 148A(b) dated 24.05.2022 relating to A.Y. 2013-14. The assessee reply in July 2022 mentioning that assessee did not do any transaction in the shares mentioned in the notice. The name of broker in the notice is also wrong. Assessee submitted affidavit also and asks to give details of payment made by the broker and to prove that particular shares were sold by the assessee. Assessing Officer did not give any reply and repeated the same details and passed order u/s 148A(d) and mentioned that it is a fit case for issue of notice u/s 148.   Now, the assessing officer has issued questionnaire in the month of January 2023 again mentioning the same detail which were mentioned earlier but the same are wrong as the assessee never dealt in such shares and neither he dealt with the broker mentioned by the AO. The assessee again filed reply on 25.01.2023 mentioning that please provide the details of payment made, date of payment, number of shares sold by the assessee, etc. but not getting any response. Now, the question arises whether the assessee should submit the current details of Long Term Capital Gain taken by him or not. Please guide.

read more

Assessment on Assessee made u/s 143(3) for the Asst Year 2021-22. Taxable amount of purchase of Rs.10 crores from a Supplier disallowed u/s 37 as the said Suplier has denied the sale transactions  with assessee.Supplier has also intimated that he is only a Watchman in a Residential Colony.Supplier has not been cross examined by the Assessee. GST amount of RS.60.00 Lakhs claimed as ITC  on above purchases  added as unexplained investment. Amount of Rs. 4 crore standing outstanding in the account of above supplier  as on 31-03-2021 was also added as unexplained credit.The said amount was paid to the Supplier through Banking Channels in the subsequent year. All the payments to above supplier were made through Banking Channels.Assesse is having full record of above purchases such as Bills,Transport Receipts,Stock Tally,GSTR-2A,TDS deducted u/s 194-Q etc.All these documents and facts submitted before A.O. Sales have not been disputed by the A.O. Observation of A.O about Stock Tally submitted before him is that the same was not submitted in Tax Audit Report .Hence same can not be relied upon. Also the same is not signed by a C.A. KINDLY ADVISE for Appeal Before CIT(A).

read more