Daily Archives: October 3, 2015

If notice under section 148(2) is valid,addition can be made on all grounds

By | October 3, 2015

If notice under section 148(2) is found to be valid, then addition can be made on all grounds or issues which may come to notice of Assessing Officer subsequently during course of proceedings under section 147, even though reason for notice for ‘such income’ which may have escaped assessment, may not survive HIGH COURT OF… Read More »

No TDS Under Secction 194LA as Land Acquired by Mutual negotiation and not compulsory acquisition

By | October 3, 2015

Where assessee had acquired land under Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973 by mutual negotiation hence, same could not be treated, as compulsory acquisition and provision of section 194LA would not be applicable   HIGH COURT OF CHHATTISGARH Income-tax Officer (TDS), Raipur v. Naya Raipur Development Authority YATINDRA SINGH, CJ. AND GOUTAM BHADURI, J.… Read More »

No TDS under section 194LA if land owners surrendered their land to municipal corporation for under development right certificates scheme

By | October 3, 2015

Where land owners surrendered their land to assessee municipal corporation, for public purpose under scheme of development right certificates, permitting development rights to owners in form of additional floor area which was equal to one and half times of area of land surrendered, and there was no quantification of said certificates, therefore, section 194LA would… Read More »

Gains from investments portfolio was taxable under Capital gain

By | October 3, 2015

Where assessee company had maintained accounts with applicable accounting standards and revenue was unable to find fault with assessee’s claim, capital gains arising out of investments portfolio was to be taxable under head ‘Capital gain‘ and not as business income HIGH COURT OF CALCUTTA Commissioner of Income-tax, Kolkata-IV v. H K Financiers (P.) Ltd. GIRISH… Read More »

Derivative market transactions of call option/put option are not speculative

By | October 3, 2015

Transaction of derivative market which included foreign currency and call option/put option could not be termed as speculative in nature IN THE ITAT MUMBAI BENCH ‘I’ IVF Advisors (P.) Ltd. v. Assistant Commissioner of Income-tax, Range 10 (1), Mumbai N.K. BILLAIYA, ACCOUNTANT MEMBER AND AMIT SHUKLA, JUDICIAL MEMBER IT APPEAL NO. 4798 (MUM.) OF 2012… Read More »

Market to market loss on derivatives allowed as deduction under section 37(1)

By | October 3, 2015

There is no requirement to deduct tax at source from payments made to NSE/BSE towards VSAT charges and lease line charges under section 194J Market to market loss on derivatives could not be treated as contingent liability and hence, same was to be allowed as deduction under section 37(1) IN THE ITAT MUMBAI BENCH ‘C’… Read More »

Forex derivative transactions Loss is business loss can be set off against other business income

By | October 3, 2015

Where assessee, an exporter of garments, entered into forex derivative transactions through its bankers to hedge its foreign currency risk, loss incurred on such transactions could be considered as business loss which could be set off against other business income Where assessee has acquired a business asset from country outside India in any previous year,… Read More »

share broker loss from trading of derivative transaction is business loss

By | October 3, 2015

Assessee, a share broker, loss incurred in trading of derivative transaction i.e. future and options, was to be regarded as ‘business loss’ and thus same could be set off against its commission income earned on sale and purchase of shares IN THE ITAT CHENNAI BENCH ‘C’ Deputy Commissioner of Income-tax, Co. Circle-I(1) v. Aishwarya &… Read More »

Salary paid to son not disallowable for want for qualification

By | October 3, 2015

Salary paid to son not disallowable for want for qualification if due to his efforts receipts of business has increased IN THE ITAT CHANDIGARH BENCH ‘A’ Shiv Kumar v. Assistant Commissioner of Income-tax BHAVNESH SAINI, JUDICIAL MEMBER AND T.R. SOOD, ACCOUNTANT MEMBER IT APPEAL NO. 684 (CHD.) OF 2012 [ASSESSMENT YEAR 2008-09] MAY  25, 2015… Read More »

No TDS on Compensation paid to evacuate slum dwellers

By | October 3, 2015

Whether Assessee should deduct TDS on Compensation paid to evacuate slum dwellers  ? To implement road widening scheme of Government, assessee evacuated illegal/unauthorised persons in form of squatters/hutments for which assessee paid certain compensation, provisions of sections 194L/194LA would not apply Detailed Analysis of full Judgement on the subject : TDS on Compensation paid to evacuate slum… Read More »

FAQs on Charitable Institutions and Income Tax

By | October 3, 2015

Charitable Institutions and Income Tax act 1961 Q.1 Are NGOs and other charitable and non-profit organizations entitled to claim tax exemption under income tax law in India? Are donors who contribute to such organizations also entitled to any tax deduction? Ans. Yes, such exemption is available to, (i) public charitable  trusts or other legal obligations, [Section 11/ 12A]… Read More »