Refusal to provide recorded reasons for issue of notice itself becomes a cause for filing Writ in High court and for court to intervene in income tax proceedings. Facts Related to Reassessment Case under Section 147 The assessee, retired from partnership received certain amount during the relevant assessment year in full and final settlement of […]
The assessee-firm was working as a sub-contractor with a company and had received interest-free advances from the said company. The Commis-sioner after scrutinizing the assessment order under section 263 held that the interest-free advance was taxable in the hands of the assessee by way of dividend income within the meaning of section 2(22)(e). Accordingly, the […]
The assessee was a partnership firm carrying on the business of clearing and forwarding agents (C&F agents) and booking cargo for transportation abroad for various airlines operating in India. It had collected freight charges from the exporters who intended to send the goods through a particular airline and paid the amount to the airline or […]
The assessee is a partnership firm carrying on the business of clearing and forwarding agents (C&F agents) and booking cargo for transportation abroad for various airlines operating in India. The assessee collected freight charges from the exporters and paid the amount to the airline or its General Sales Agents. The assessee charged commission for the […]
The assessee claimed deduction on interest paid on borrowed funds for investment in a partnership firm where-from the assessee as partner got share income which was exempt from tax under section 10(2). The Commissioner inovoked action u/s 263 of the Income Tax Act as the claim of deduction made by the assessee and allowed by […]
The assessee brought in certain land owned by him into the partnership firm which was running the business of purchase and sale of immovble property. In the assessment year 1975-76, five new partners were taken in the firm and subsequently through a deed of retirement those five new partners took over the business of the […]
Section 54 of the I T Act provides exemption in case capital gains arises on sale of house property whereas section 23(2) says that annual value of a house property occupied by owner is NIL. The issue is “whether these tax exemption provisions are available incase of a firm which owns house property?” The said...
Any expenditure incurred wholly and exclusively for the business is alloowable expenditure u/s 37 of the I.T.Act. The premium paid on insurance policy on any employee life is also allowable expenditure. The insurance company sells Keyman insurance policy which basically means as per Explanation to section 10(10D) as under
An unlimited company is a company having no limit on the liability of its members. The members of such a company are liable to the full extent of their fortunes to meet the obligations of the company by contributing to its assets in the event of its being wound up. Thus, such a company does not carry the benefit of limited liability which is available to the members of all the other types of company. So far as the risk of the members is concerned, there is no difference between a partnership firm and an unlimited company.