Category: Income Tax

ITAT explains the law on exemption u/s 10(2A) for partners share of profit in the income of the firm. Revision order u/s 263 quashed as it failed to state what kind of enquiry AO failed to make. Prelude: Section 10 of the Income Tax Act, 1961 (the Act) …

Amendment to section 32(2) is not prospective. Unabsorbed depreciation can be carried forward beyond 8 years, prior to amendment-High Court Prelude: Section 32(2) of the Income Tax Act, 1961 (“the Act”) provides that where due to loss or inadequate profits in any year, full depreciation allowance could not …

Addition for accommodation entries merely based on statement of investors and without controverting the documents furnished invalid-High Court Prelude: The additions on account of accommodation entries have been a common feature in income tax proceedings which have attracted litigation. A typical modus operandi adopted by the receiver of the such …

Sharp increase in cases of prosecutions by Income Tax Department The Income Tax Department has accorded the highest priority to tackle the menace of black money. With this objective in mind, the Department has initiated criminal prosecution proceedings in a large number of cases of tax offenders and …

Having afforded a hearing, ITO can not attach assessee’s bank straightway without informing as to whether the stand taken by the assessee is justified or not-High Court  Prelude: Section 222 of the Income Tax Act, 1961 (the Act) provides that in where an assessee is in default or …

Comparable company following calendar year for maintaining accounts can not be used in contrast to assessee following financial year ending 31st March despite functional similarities – ITAT Prelude: Chapter X of the Income Tax Act, 1961 (the Act) contains Special provisions relating to avoidance of Tax. Section 92 …

e-TDS/TCS RPU version 2.2 for TDS returns released by NSDL The New e-TDS/TCS Return Preparation Utility Ver. 2.2 released by NSDL today for Regular & Correction quarterly e-TDS/TCS statements is applicable from FY 2007-08 Guidelines for usage of these RPUs are provided in the respective utilities. The users are advised …

Income Tax Department steps-up actions under Prohibition of Benami Property Transactions Act. Benami properties of more than Rs. 3,500 crore in more than 900 cases attached  Due to intensive efforts undertaken by the Income Tax Department, provisional attachment has been made in more than 900 cases of properties under the …

How to submit Taxpayers response to intimation u/s 143(1)(a)(vi) for mismatch of income from 26AS Form-16 or 16A. CBDT circular giving manner of furnishing response  Sub-clause (vi) of clause (a) of sub-section {1) of section 143 of the Income-tax Act, 1961 (‘Act’) as introduced vide Finance Act, 2016, …

Assessment made without notice u/s 143(2) where ITR-V not received within 30 days can not be sustained. The extended period of 120 days for sending ITR-V validated the returns originally filed-High Court Prelude: Under the Income Tax Act, 1961 (the Act) section 139D empowers the CBDT to make rules …