Category Archives: Income Tax

Prosecution u/s sec. 276CC of Income Tax even if no tax payable under Return : HC

By | November 16, 2018

The offence under Section 276 CC of IT Act deals with failure to comply with the obligation under Sections 139 (1) or 142(1) or 148 of IT Act. Disobedience of each said provision of law itself constitutes a distinct offence. The offence under Section 276 CC, prima facie, stood constituted upon failure on the part… Read More »

Change in Income Tax law of Charitable Trust

By | November 16, 2018

Change in tax law of Charitable Trust Analysis of amendments related to Charitable and religious trusts by Finance Act, 2017 Finance Act’2017 had made some major changes relating to Charitable and religious trusts. These amendments have far reaching impact on the taxation of Charitable and religious trusts. In this Article we have discussed four major amendments… Read More »

Cash Purchases disallowed because banking facilities were available : BOMBAY HC

By | November 16, 2018

Income tax discourages payment of money in cash and beyond a specified limit. That is to encourage cheque transactions and banking operations. It is in these circumstances that the Assessing Officer found that out of the total consideration of Rs. 39,00,960/-, a substantial sum has been paid in cash even though banking facilities are available… Read More »

No Income Tax Exemption for PF interest on accumulated balance after retirement : ITAT

By | October 31, 2018

e are of the considered opinion that the withdrawal to the extent of the accumulated balance (viz., contributions plus interest) up to the retirement of the assessee’s i.e., 1/4/2002 of Rs.37,93,888/- is eligible for exemption u/s 10(12) of the Act . However in respect of the accrued interest of Rs. 44,07,195/-from 1/4/2002 to 11/4/2011 on the… Read More »

Amendments proposed in Income Tax Rules 2C, 2CA and 11AA and form no Nos. 10G, 56 and 56G

By | October 29, 2018

Ministry of Finance Draft Notification proposing Amendment of Rules 2C, 2CA and 11AA and for Nos. 10G, 56 and 56G of the Income-tax Rules, 1962 placed in public domain for inputs from stakeholders and general public Posted On: 29 OCT 2018 5:22PM by PIB Delhi Currently, for grant of approval under sub-clauses (iv) and (v) of… Read More »

CBDT notified Revised Form 13 to implement E-process for Low /Nil TDS Certificate under Section 197/ 206C : Notification No 74/2018 Income Tax

By | October 29, 2018

CBDT notifies amended IT Rules 28, 28AA, 28AB, 37G and 37H along with Revised Form 13 to implement E-process for issue of Certificate under Section 197/ 206C for Lower/ Nil Rate of deduction/ collection of Tax (TDS/ TCS) under Income Tax, vide Notification No. 74/2018 dt. 26 Oct. 2018 (Income-tax (Eleventh Amendment) Rules, 2018), as under: Revised/… Read More »

20% demand can’t be directed to pay during pendency of stay application: Bombay HC

By | October 28, 2018

If that demand is under dispute and is subject to the appellate proceedings, then, the right of appeal vested in the petitioner/assessee by virtue of the Statute should not be rendered illusory and nugatory. That right can very well be defeated by such communication from the Revenue/Department as is impugned before us. That would mean… Read More »

CBDT circular are binding on revenue: HC

By | October 28, 2018

HIGH COURT OF BOMBAY Principal Commissioner of Income-tax, Mumbai v. Nawany Construction Co. (P.) Ltd. S.C. DHARMADHIKARI AND B.P. COLABAWALLA, JJ. IT APPEAL NO. 1142 OF 2015 SEPTEMBER  10, 2018 Arvind Pinto for the Appellant. Sameer Dalal and Ms. Namrata Kasale for the Respondent. JUDGMENT 1. When this appeal was called out, Mr. Arvind Pinto, appearing on behalf of the Revenue in support of… Read More »

Amendment in Income Appeal Forms 36/ 36A for Appeal/ Memorandum of cross-objections before ITAT

By | October 24, 2018

Notification No. 72/2018 Income Tax CBDT has amended Income Tax Forms 36/ 36A (i.e. Form of Appeal/ Memorandum of cross-objections to the Appellate Tribunal) vide Notification No. 72/2018 dt. 23 Oct. 2018 (Income-tax (10th Amendment) Rules, 2018), as under: Amended Forms 36/ 36A for Appeal/ Memorandum of cross-objections before ITAT: CBDT Notification No. 72/2018 Income Tax… Read More »

​Engagement of Advocates as Special Public Prosecutors Chandigarh by Income Tax Department

By | October 18, 2018

PUBLIC NOTICE Dated 15.10.2018 Applications are invited from practicing advocates, h avin g experience in criminal matters, for engagement as Special Public Prosecutors (SPPs), to represent the Income Tax Department before the Courts of Sessions a nd its Subo rd inate Cou rts in Chandigarh and Districts of Mohali and Ropar in Punjab in Prosecution… Read More »

Special Courts Notified under Prohibition of Benami Property Transactions Act, 1988.

By | October 17, 2018

The Central Govt. has notified the courts of Session as Special Courts for the trial of offences punishable under the Prohibition of Benami Property Transactions Act, 1988. [Notification No. 67/2018/F. No. 149/144/2015-TPL (Pt. IV)] MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 16th October, 2018 S.O. 5323(E).—In exercise of powers conferred by sub-section… Read More »

Sec. 54 deduction allowable if new house purchased within 1 year prior to date of agreement to sell: ITAT

By | October 16, 2018

IN THE ITAT KOLKATA BENCH ‘B’ Gautam Jhunjhunwala v. Income Tax Officer Ward-25(4), Kolkata A.T. VARKEY, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER IT APPEAL NO. 1356 (KOL) OF 2017 [ASSESSMENT YEAR 2012-13] SEPTEMBER  7, 2018 P.R. Kothari, FCA for the Appellant. Rabin Choudhury, Addl. CIT Sr. DR for the Respondent. ORDER A.T. Varkey, Judicial Member – This appeal… Read More »

Aayakar Adhiniyam (As Amended by Finance Act 2018) (Hindi) – by Taxmann

By | October 15, 2018

Aayakar Adhiniyam (As Amended by Finance Act 2018) (Hindi)Paperback – 2018 by Taxmann (Author) Price Rs 1515 to Buy Click here Product description As Amended by Finance Act 2018 Paperback: 1176 pages Publisher: Taxmann; 2018 Edition edition (2018) Other Income Tax Books

Processing of Income Tax Returns with refund claims if not processed due to technical or other reasons

By | October 12, 2018

Processing of returns with refund claims which were not processed within the time allowed u/s 143(1) due to some technical or other reasons ITBA-Processing Instruction No 4 DIRECTORATE OF INCOME TAX (SYSTEM) ARA Center, Ground Floor, E-2, Jhandewalan Extension, New Delhi – 110055 F.No. System/ITBA/Instruction/ITR Processing/177/16-17/ Dated: 08.10.2018 To, All Principal Chief Commissioners of Income-tax/CCsIT… Read More »

Urgent Attention – Tax Audit AY 2018-19 if Taxpayers having Business/Professional Receipts – Requirement for Filing Tax Audit Report as per Income Tax Act

By | October 11, 2018

Urgent Attention – Tax Audit if Taxpayers having Business/Professional Receipts – Requirement for Filing Tax Audit Report as per Income Tax Act Dear Taxpayer, As per the section 44AB of Income Tax Act, the books of accounts for the relevant previous year are required to be audited by a Chartered Accountant and the audit report has… Read More »

Income Tax audit Date extended AY 2018 19 to 31.10.2018 : Download Order

By | October 9, 2018

Income Tax audit Date extended AY 2018 19 to 31.10.2018 Read Notification F No 225/358/2018/ITA.II Dated 8th October 2018 Press Release CBDT further extends date for filing Income Tax Returns and Audit Reports Posted On: 08 OCT 2018 6:55PM by PIB Delhi The due date for filing of Income Tax Returns and Audit Reports for… Read More »

TDS on Rent -Complete Guide

By | October 7, 2018

TDS on Rent TDS on Rent -Section 194IB w.e.f 01.06.2017 Read Section 194IB -TDS on Rent w.e.f 01.06.2017 in case of Individual and HUF not liable for Audit TDS on Rent -Section 194I Conditions to be satisfied for applicability of TDS on Rent [section 194-I ]  For applicability of TDS on Rent -section 194-I, following conditions… Read More »

Late Fees & Penalty for delay in filing TDS/TCS Statements under Income Tax

By | October 7, 2018

LATE FILING FEES AND PENALTY FOR FAILURE TO FURNISH/DELAY IN FURNISHING THE TDS/TCS STATEMENTS [As amended by Finance Act, 2018] Before understanding the penalty provisions for failure to furnish the statement of Tax Deducted at Source or statement of Tax Collected as Source (i.e. commonly known a TDS/TCS return) we shall first have a look at… Read More »

No TDS on Internet connectivity Charges Paid for dedicated lease line : ITAT

By | October 7, 2018

The lease line charges were paid by the assessee to the internet service provider for faster internet access on dedicated lease line and as such the said payment had been made for use of telecommunication services / connectivity for transmission of voice / data facility provided by the vendors and not for use of any… Read More »

194IB -TDS on Rent w.e.f 01.06.2017 in case of Individual and HUF not liable for Audit

By | October 7, 2018

Section 194IB of Income Tax Act [ TDS on Rent w.e.f 01.6.2017 ] [ Section 194IB of Income Tax Act – Deduction of tax at source on Rent in the case of certain Individuals and Hindu undivided family] If you are paying Rent in India , then you  must have been confused whether you needs… Read More »

Extend tax audit due date for AY 2018-19 & waive off Sec. 234A interest : HC

By | October 6, 2018

HIGH COURT OF RAJASTHAN Rajasthan Tax Consultants Association v. Union of India MOHAMMAD RAFIQ AND GOVERDHAN BARDHAR, JJ. D.B. CIVIL WRIT (P.I.L) PETITION NO. 21774 OF 2018 OCTOBER  1, 2018 Siddharth Ranka, M.I. Iqbal and Saurabh Harsh for the Petitioner. R.D. Rastogi and Chandra Shekhar for the Respondent. ORDER   1. This public interest litigation has been filed by the Rajasthan Tax Consultants Association, Jaipur inter… Read More »

Interest received U/s.28 of Land Acquisition Act not taxable : ITAT

By | October 5, 2018

In case the interest is received under section 28 of the Land Acquisition Act, then same is not taxable in the hands of the assessee and in case, the interest is received under section 34 of the Land Acquisition Act, the same is taxable in the hands of the assessee. IN THE ITAT PUNE BENCH… Read More »

Sec. 112A relief by CBDT : Notification No 60/2018

By | October 4, 2018

The Central Board of Direct Taxes has notified the final list of specified transactions of acquisition of equity shares where requirement of payment of STT (securities transaction Tax ) to levy long-term capital gain tax under section 112A isn’t compulsory. Notification No. 60/2018 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION… Read More »

e-TDS TCS Return Utility (RPU) Version 2.4 from 01.10.18

By | October 4, 2018

NSDL latest e-TDS TCS Return Preparation Utility (RPU) Version 2.4 effective from 01.10.2018 e-TDS/TCS Return Preparation Utility Ver. 2.4 for Regular & Correction Statement(s) from FY 2007-08 onwards. Key Features – Return Preparation Utility (RPU) version 2.4 Integration of new Encryption certificate in File Validation Utilities (FVUs) Renewed Encryption certificate with extended validity has been integrated in… Read More »

Occasion not necessary to receive gifts , Sec 68 addition deleted by ITAT

By | October 3, 2018

  sub-sections 56(2)(v), 56(2)(vi) & 56(2)(vii) shall not be applicable if any sum is received from any relative ( as defined in explanation (e) to section 56). There is no mention about the occasion to be a necessary condition for receiving any sum from any relative. In the instant case, the alleged gifts of Rs.50,000/-,… Read More »

Sec. 89 Income Tax relief allowed for arrears of perquisites : ITAT

By | October 3, 2018

IN THE ITAT AGRA BENCH (SMC) Rajesh Kumar v. ACIT 1(1)(1), Agra A.D. JAIN, JUDICIAL MEMBER IT APPEAL NO. 198 (AGRA) OF 2018 [ASSESSMENT YEAR 2014-15] JULY  16, 2018 Ajay Kumar Sharma, AR for the Appellant. Waseem Arshad, Sr. DR for the Respondent. ORDER   1. This is assessee’s appeal for A.Y. 2014-15 against the CIT (A)’s action of… Read More »

No penalty for late TDS return filing if tax deducted & deposited in time

By | October 1, 2018

IN THE ITAT DELHI BENCH ‘C’ Haryana Distillery Ltd. v. Joint Commissioner of Income-tax, Karnal BHAVNESH SAINI, JUDICIAL MEMBER AND PRASHANT MAHARISHI, ACCOUNTANT MEMBER IT APPEAL NOS. 1642 & 1643 (DELHI) OF 2015 [ASSESSMENT YEARS 2010-11 AND 2011-12] SEPTEMBER  4, 2018 K. Sampath, Sr. Advocate for the Appellant. A.K. Yadav, Sr. D.R. for the Respondent. ORDER Bhavnesh Saini, Judicial… Read More »

Ex-Servicemen Contributory Health Scheme notified for 80D deduction under Income Tax

By | September 27, 2018

Notification No. 55 /2018 Income Tax Summary of Notification No. 55 /2018 Income Tax The Central Board of Direct Taxes (CBDT) has notified the ‘Ex-Servicemen Contributory Health Scheme’ of the Department of Ex-Servicemen Welfare, Ministry of Defence, for the purpose of Section 80D deduction under Income Tax Act . The deduction is available for the assessment… Read More »

Income Tax Audit Date Extended for AY 2018-19 : Notification : Download

By | September 25, 2018

Income Tax Audit Date Extended for AY 2018-19 Govt has extended Income tax Audit Date for AY 2018-19 to 15.10.2018 Tweet from CBDT is as follow CBDT extends due dt for filing of Income Tax Returns & audit reports from 30th Sept,2018 to15th Oct, 2018 for all assessees liable to file ITRs for AY 2018-19… Read More »

ICAI Guide on Tax Audit Report Form 3CD for AY 2018-19 NN 33/2018

By | September 24, 2018

ICAI Implementation Guide on Revised Tax Audit Report in Form 3CD  as per CBDT Notification No. 33/2018 As we all are aware, recently, the CBDT vide Notification No. 33/2018 dated 20th July, 2018 has made several amendments to Form No. 3CD madating additional requirements for reporting puproses. The additional reporting requirement has increased the scope of tax… Read More »

Penalties under Income Tax Act [FA 2018]

By | September 24, 2018

PENALTIES UNDER THE INCOME-TAX ACT [As amended by Finance Act, 2018] Introduction Under the Income-tax Act, penalties are levied for various defaults committed by the taxpayer. Some of the penalties are mandatory and a few are at the discretion of the tax authorities. In this part, you can gain knowledge about the provisions relating to… Read More »

Allowable and Not allowable Business Expenses under Income Tax

By | September 24, 2018

Business Expenses under Income Tax Here are the case Laws on allowed and not allowed Business Expenses under Income Tax Business Expenses Allowed under Income Tax Expenses incurred on abandoned project was revenue expenses as no new Asset is created : MADRAS HC Depreciation on Road constructed on BOT basis allowed as Intangible asset :… Read More »

No penalty for concealment if property sold wasn’t residential and Sec 54 deduction disallowed : HC

By | September 22, 2018

An appeal lies under Section 260A of the 1961 Act, only when there is a substantial question of law. We find that there is no question of law involved in this appeal much less any substantial question of law. The learned Tribunal, which is the highest fact finding body, has found on facts that the… Read More »

No Income tax on Interest Income on Specified Off-shore Rupee Denominated Bonds

By | September 17, 2018

Ministry of Finance Exemption to Interest Income on Specified Off-shore Rupee Denominated Bonds Posted On: 17 SEP 2018 7:23PM by PIB Delhi Interest payable by an Indian company or a business trust to a non-resident, including a foreign company, in respect of rupee denominated bond issued outside India before the 1stof July, 2020 is liable… Read More »

No Tax on compensation/damage for settlement of dispute as is capital receipt : ITAT

By | September 17, 2018

In terms of the settlement deed assessee withdrew the criminal complaint filed by him and in lieu thereof received compensation of Rs. 6,77,94,580/-. Thus, as could be seen, the compensation received by the assessee was not for his professional activities but for settlement of dispute between him and some other7 party resulting in filing of… Read More »

Sec. 54 deduction available for new residential house including Land Cost : HC

By | September 17, 2018

Section 54(1) of the said Act is specific and clear. It is the cost of the new residential house and not just the cost of construction of the new residential house, which is to be adjusted. The cost of the new residential house would necessarily include the cost of the land, the cost of materials… Read More »

Unsecured loan/ Gifts to be added in Income if paying capacity of giver is not proved : HC

By | September 17, 2018

when the assessee failed to prove the capacity of the concerned persons who alleged to have given the unsecured loan and/or gift, it cannot be said that the learned Tribunal has committed any error in confirming the additions made by the Assessing officer and confirmed by the CIT (Appeals) of Rs.19,92,730/- as unsecured cash credit.… Read More »

Capital Receipt or Revenue Receipt under Income Tax : Free Study Material 

By | September 17, 2018

Capital Receipt or Revenue Receipt under Income Tax Here is the Free Study Material on Capital Receipt or Revenue Receipt under Income Tax No Tax on compensation/damage for settlement of dispute as is capital receipt : ITAT carbon credit sale is capital receipt hence not taxable Interest on fixed deposits is Capital receipt as FDR was linked… Read More »

Taxmann’s Guide to Tax Audit : September 2018 Edition Book by CA Srinivasan Anand G.

By | September 12, 2018

Guide to Tax Audit-Incorporating IT (8th Amdt.) Rules 2018 effective from 20-8-2018 (September 2018 Edition) Paperback – 2018 by CA Srinivasan Anand G. Incorporating IT (8th Amdt.) Rules 2018 effective from 20-8-2018 Price Rs 1295 Buy online Click here Paperback: 680 pages Publisher: Taxmann; September 2018 Edition edition (2018) Language: English View Contents of this Book: Taxmann’s Guide to Tax Audit :… Read More »

Date of allotment of property is relevant for Capital Gain and not date of registration of conveyance deed. : ITAT

By | September 12, 2018

In order to determine taxability of capital gain arising from the sale of property, it is the date of allotment of property which is relevant for the purpose of computing holding period and not the date of registration of conveyance deed. The provisions of the Act nowhere states that the option of selecting self occupied… Read More »