Category: Income Tax

Share application money circular transaction addition u/s 68 deleted where loan creditors had subscribed out of the loans repaid by the company-ITAT upholds findings of CIT(A) as identity, genuineness of transaction and creditworthiness of subscribers were not doubted Prelude: Section 68 of the Income Tax Act, 1961 (Act) contains provisions …

Change in head of income not permissible u/s 153A if no incriminating material is found during the search-ITAT Prelude: Section 153A of the Income Tax Act, 1961 contains provisions governing assessment of cases where a search action has taken place u/s 132 or books of account/other documents have …

Income Tax to file request for restoration of struck off companies name where assessment, penalty, appellate, or prosecution proceedings are pending-CBDT In order to curb the paper/shell companies, during the current financial more than 2 lacs companies have been struck  off from the register of companies under section 248(5) …

Reimbursement of expenses not income though TDS was deducted on such payments u/s 194C or 194H as contract/commission payments -High Court  Prelude: Under Section 194C of the Income Tax Act, 1961 every person making payment under contractual obligation for carrying out any work is required to deduct tax …

Income of SEEPZ Special Economic Zone Authority notified as exempt  Under section 10(46) of the Income Tax Act, 1961, the Central Government may notify any specific income of a Body, Authority, Board, Trust or Commission etc. as exempt. The twin conditions for  qualifying for the notification are that; …

Condonation of delay in submission of ITR-V or EVC within 120 days by providing reason for delay at income tax efiling website-Steps required As of now for e-filed return which is not digitally signed, the taxpayer is required to either send a signed copy of Income Tax Return …

How to change wrong personal details filled in income tax return. For wrong personal details (i.e. Bank Account, Address, Mobile number and e-mail id) filled inadvertently in the ITR, there is no need to revised the return. Income Tax E-filing website has added a new feature to correct such wrong …

Approval by CIT even before recording reasons by AO for reopening u/s 147 may reflect premature approval but need not render initiation of proceedings as non-est or void -High Court Prelude: Section 147 of the Income Tax Act, 1961 contains enabling provisions for re-assessment of income escaping assessment. …

Expenditure on Construction and improvement on leased building-Revenue or capital. Enduring benefit cannot be a conclusive test and it cannot be mechanically applied-High Court Prelude: Section 29 of the Income tax Act, 1961 (the Act) provides that the profits and gains of business or profession shall be computed …

Interest on bank fixed deposit not credited to account taxable on mercantile basis. It is no defense that TDS was not deducted by bank and hence accrual did not arise -High Court Prelude: Taxation of interest on fixed deposits made with banks have often been seen the litigation. One …