Section 172 is the presumptive taxation scheme for Non Residents who have causal income from shipping business under which a ship is not let to sail from the Indian port unless tax on 7.5 % of total receipt as rent or freight charges is paid or arrangement for payment of such tax is made and...
The Explanation to section 73 actually not the definition of Speculation under Income Tax Act , but only a deeming fictaion by which in case of companies the meaning of speculation is enclarged to include even delvery based share tranaction. Facts Related to Reassessment Case under Section 147 The assessee filed return on 30-12-1991 disclosing […]
Audit objections to assessment orders are very routine and equally routine is the manner in which these audit observation is handled within the tax department. Usually , the assessing officer first do not agree with the observation of audit objection, but later on account of CBDT instraution and guideline, issue notice u/s 148 on the […]
The reasons for reopening has to be supplied to assessee when the assessee demands after filing a return in compliance to the notice served u/s 148 of the Income Tax Act. If the A.O does not give the reasons , if demanded by the assessee, it is violation of the Supreme Court judgement in GKN […]
The Mumbai High Court in IOT Infrastructure and Eng. Services Ltd vs ACIT 329 ITR 547 (BOM.)/ made the ruling clear that if assessing officer does not supply the reasons recorded for reopening the assessment u/s 147 of the Income Tax Act. Facts Related to Reassessment Case under Section 147 In the present ease the […]
For the first time in a reassment proceeding u/s 147 , Supreme Court set in a procedure to be followed both by assessee and assessing officer when a notice u/s 148 of the Income Tax Act is issued. The Apex Court in GKN Driveshaft (India) Ltd vs ITO , 259 ITR 19 fixed the responsibility […]
The assessee filed the return declaring income at ‘Nil’ under normal provisions but at Rs. 1.45 crores under section 115JB of the Act. During the assessment proceedings, the Assessing Officer (AO) noticed that the assessee company had received advances of Rs. 6,32,72,265 by way of book entry from JGPL and the shareholders having substantial interest […]