Don't Worry , Be Happy !
Rule 8D is invoked by assessing officer for computing disallowance u/s Section 14A of the Income Tax Act even in case shares are held as Stock-in-Trade.Thus , the agony of the taxpayers who deals in shares only and does not involves in investment aggravates , because in most of cases the dividend received are far...
The education cess was introduced from Assessment Year 2005-06 vide Finance Act 2004 by which an additional tax was imposed computed on the basis of tax & surcharge.However, this new additional tax has created a controversy in case of non resident assessees specially with respect to tax resident of countries with whom India has a...
Special Bench of Income Tax Appellate Tribunal , Kolkata has delivered a very favourable judgment in Madhu Jayanti International Ltd vs DCIT Circle 1 2012] 23 taxmann.com 297 (Kol.) (SB) to all those who are into the blending , processing of tea holding that even if in case of tea blending and packing in various...
The issue of depreciation on website development cost incurred by an assessee has been settled by Income Tax Tribunal ( ITAT) , New Delhi Bench in makemytrip (India) Pvt Ltd vs DCIT Circle [2012] 19 taxmann.com 137 (Delhi)holding that expenditure on website development is capital expenditure and falls within the block of intangible asset which...
Transactions through portfolio management services has the risk of falling in usual controversy of Capital gains vs business income under income tax law .As the rate of income tax on capital gains are much lower than business income , the issue is very important. Therefore,before one opts for ubiquitous portfolio management services ,one must carefully...
Banglore bench of Tax Tribunal held that only capital gains arises when you sale capital assets which are used for business purposes , therefore in that case the capital gains can not be adjusted with business loss of earlier years. The issue before tribunal was exactly that – whether the carried forward loss of business...
Readers were informed in June 2011 about a Mumbai Tribunal decision which held amendment to disallowance u/s 40(a)(ia) by Finance Act 2010 is retrospective . Now this is no good ruling as the Special Bench of Mumbai Tribunal has held otherwise in recent decision in case of Bharati Shipyard Ltd. vs DCIT [2011] 141 TTJ...
Section 50 of the I T Act provides that if the sale consideration of a depreciable asset is more than the block of asset, the excess of proceeds over WDV is to be treated as Short Term Capital gains. let us say , you have earlier years long term capital loss and in one year...
A very common question in mind of flat buyers rises at the time of sale of flat is -Which date–allotment date or Possession or Registration of Flat – should be taken for capital gains purpose because if the flat is Short Term Capital asset much higher tax is payable and no scope for availing exemption...
Delhi Income Tax Tribunal Alka Agarwal vs ADIT has recently dwell on the issue whether long term capital gains exemption as provided u/s 10(38) can be claimed in case of a share which was previously held as investment , but converted to stock in trade and when sold after holding them for more than a...
Disallowance of expenditure u/s 40(a )(ia) of the I T Act for non TDS is very technical and common these days in an assessment proceeding. In one case DCIT vs S.K Tekriwal I.T.A. No. 1135/Kol/2010, Assessment Year : 2007-08 , before ITAT, Kolkata , the issue was whether A.O can disallow the expenditure u/s 40( a)...
In previous posting , readers attention was brought on the invalidity of assessment if it was based on a notice u/s 143(2) which was issued in time , but served after time limitation . Contrary to the said position is the issue of notice u/s 148 of the I T Act. The notice u/s 148...
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