Description: S.12A : Charitable Trust – Registration as public Trust not necessary for S.12A “charity” registration. Registration as a public Trust is not a condition precedent for grant of registration under section 12A. There is no requirement in the Income tax Act that the institution constituted for advancement of charity, must be registered as a […]
Read MoreDescription: S.254(2) : Appellate Tribunal – Rectification of mistakes – Orders not cited – Tribunal entitled to do “own research” and rely on non-cited cases. Reliance and reference to reasons stated in another decision cannot be regarded as a mistake apparent from the record. It is not unusual or abnormal for Judges or adjudicators to […]
Read MoreDescription: Expenditure incurred on heart operation was not deductible. Under section 31 also 37 (1) because of following reasons: Heart cannot be considered plant as it did not have any mention in assessee’s balance sheet under assets and its cost of acquisition could not be determined. Deduction under section 37 (1) cannot be granted as […]
Read MoreDescription: Interest on enhanced compensation of land is liable to be taxed once it was received . Dy CIT vs. Gopal Ramnarayan Kasat (2011) 240 CTR 266/54 DTR 228 (Bom.) High Court ). Source: 1. www.aiftponline.org 2. AIFTP TIMES Volume.No.2 July, 2011,Page No. 5. Our comment: Accrued interest on enhanced compensation on acquisition of […]
Read MoreDescription: S. 260 A : Appeal to High court – condonation of delay – long delay due to Procedural reasons in filing Dept. appeals cannot be condoned. The SLP challenging the order of the Bombay High Court declining to condone Delay of 656 days in filing the appeal was dismissed on the basis that several […]
Read MoreDescription: The penalty was initiated for filing inaccurate particulars of income, but it was levied for concealment of income – if the satisfaction arrived at during the assessment proceedings was for one reason, penalty cannot be levied for another reason – Even after retrospective insertion of S.271(1)(1B), the difference between the two limbs of S.271(1)(c) […]
Read MoreDescription: Income subject to TDS – Assessee’s income being tax deductible at source under s.195, no interest under ss.234B and 234C could be charged. Source: 1. www.icaihyd.org. 2. HYDERABAD BRANCH OF SIRC NEWSLETTER.Volume:12 Issue:8. August,2010,Page No.12 Our comment: Interest U/s. 234B, 234C cannot be charged where the Assessee’s Income covered by TDS U/s.195
Read MoreDescription: Reassessment- Change of opinion-Assessment under s.143(3) vis-à-vis absence of new material deed of land evidencing the value adopted by the stamp valuation authority at a higher figure than the actual sale consideration received by him, and the assessment having been completed unders.143(3). Reassessment proceedings initiated by the AO for applying the provisions of s.50C […]
Read MoreDescription: Increase where the cancellation of a contract does not affect the trading structure of the business. Then the compensation received for such cancellation shall be treated as revenue receipt. Ion Exchange (India) Ltd. vs. ITO (2010) 8 taxmann.com 295 (Mum.) Source: 1. www.aiftponline.org 2.AIFTP TIMES Volume.No.2 February, 2011.Page No.7. Our Comment: Any compensation received […]
Read MoreDescription: Deeming fiction contained in Explanation to sec.73 not to be invoked merely when there is loss w.r.t. speculative transaction u/s 43(5) carried in by the assessee but it is in relation to the entire activity of purchase and sale of shares whether or not affected by actual delivery. Dartmour Holdings Pvt.Ltd. vs. ITO(2010) 8 […]
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