The Tax Talk

Loss of stock due to fire: Forget Insurance, it is allowable as deduction in the year in which loss occurred

January 20, 2021 0 Comments

Loss of stock due to fire: Forget Insurance, it is allowable as deduction in the year in which loss occurred Short Overview Where AO disallowed claim of assessee towards loss of stock caused by fire on allegation that same was ...

IT Judgement

Landmark Judgment by Jaipur ITAT: No disallowance u/s 40A(3) if identity of sellers & source of cash payment were established.

January 20, 2021 0 Comments

Landmark Judgment by Jaipur ITAT: No disallowance u/s 40A(3) if identity of sellers & source of cash payment were established. Vijayeta Build con (P.) Ltd. v. ACIT - [2021] 123 taxman 133 (Jaipur - Trib.) Short Overview of the case: A notice ...

IT Judgement

Benefit of Sec. 54G exemption isn’t available if land was notified as urban land after its sale: High Court

January 20, 2021 0 Comments

Benefit of Sec. 54G exemption isn't available if land was notified as urban land after its sale: High Court Fabsun Engineering (P.) Ltd. v. ITO - [2021] 123 taxmann.com 132 (Karnataka) Short overview of the case: Assessee had a factory at Anekal, Bangalore. It ...

IT Judgement

No penalty if Declaration is made under section 132(4) by duly substantiating manner in which such undisclosed income was derived; including those undisclosed income in the return filed under section 153A and the payment of taxes is done thereon

January 19, 2021 0 Comments

No penalty if Declaration is made under section 132(4) by duly substantiating manner in which such undisclosed income was derived; including those undisclosed income in the return filed under section 153A and the payment of taxes is done thereon Short ...

IT Judgement

Benefit of set off of loss of Partnership Firm: AO could examine applicability of section 79 only in the year in which loss was set off, and not in the year in which assessee claimed the loss to be carried forward.

January 19, 2021 0 Comments

Benefit of set off of loss of Partnership Firm: AO could examine applicability of section 79 only in the year in which loss was set off, and not in the year in which assessee claimed the loss to be ...

IT Judgement

Income declared during survey & Year of taxability: Assessment year for which declaration had been made or the year in which survey was conducted?

January 16, 2021 0 Comments

Income declared during survey & Year of taxability: Assessment year for which declaration had been made or the year in which survey was conducted? Short Overview Once statements had been accepted by survey team, tax should have been calculated ...

IT Judgement

Statements recorded under section 132(4) cannot be made the sole basis for making additions unless it is supported by any documentary evidence

January 16, 2021 0 Comments

Statements recorded under section 132(4) cannot be made the sole basis for making additions unless it is supported by any documentary evidence Short Overview Where on date of search, books of account of assessee were incomplete and printouts of cash ...

IT Judgement

Premium for hedging foreign exchange fluctuations as regards loan availed of for purchase of fixed asset is a Capital on revenue expenditure?

January 16, 2021 0 Comments

Premium for hedging foreign exchange fluctuations as regards loan availed of for purchase of fixed asset is a Capital on revenue expenditure? Short Overview : Premium for hedging foreign exchange fluctuations as regards loan availed of for purchase of fixed ...

IT Judgement

CBDT instructs officers to levy for false entries in the books of accounts

January 15, 2021 0 Comments

CBDT instructs officers to levy for false entries in the books of accounts F. No. 414/02/2021 — IT (Inv. I) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ...

IT Judgement

Allowability of depreciation owned jointly with others

January 4, 2021 0 Comments

Allowability of depreciation owned jointly with others Short Overview : Where value of building and value of land on which it was built were separately identifiable, no depreciation could be allowed on undivided share of land even though assessee had ...

IT Judgement

If Sales made by the assessee is not disputed, purchases could not be added considering them as bogus and only profit embedded in such purchases is required to be added

January 4, 2021 0 Comments

If Sales made by the assessee is not disputed, purchases could not be added considering them as bogus and only profit embedded in such purchases is required to be added Short Overview Where sales made by assessee was not disputed, ...

IT Judgement

Valuation of shares for a consideration more than FMV: Validity if AO changed the method of valuation adopted by assessee

January 4, 2021 0 Comments

Valuation of shares for a consideration more than FMV: Validity if AO changed the method of valuation adopted by assessee Short Overview : When law has specifically provided a method of valuation of shares and assessee exercised an option by choosing ...

IT Judgement

Taxation of retention Money retained by contracted, to be received only after conclusion of project

January 2, 2021 0 Comments

Taxation of retention Money retained by contracted, to be received only after conclusion of project Short Overview In terms of relevant clauses of contract, contracted had right to withhold certain percentage of the consideration till conclusion of project and ...

IT Judgement

Assessment framed on erstwhile partnership firm which was a non-existent entity was void ab initio.

January 2, 2021 0 Comments

Assessment framed on erstwhile partnership firm which was a non-existent entity was void ab initio. Short Overview : Assessment framed on erstwhile partnership firm which was a non-existent entity at that point of time and even Department being aware of ...

IT Judgement

Assessee engaged in business of real estate & Method of accounting for recognizing profit by completed Contract Method vs. Percentage Completion Method

January 1, 2021 0 Comments

Assessee engaged in business of real estate & Method of accounting for recognizing profit by completed Contract Method vs. Percentage Completion Method Short Overview Where assessee was engaged in undertaking construction activities for those persons to whom it intended to sell ...

IT Judgement

Applicability of TDS on Discount on sale of Set-Top Boxes and Recharge Coupon Vouchers

January 1, 2021 0 Comments

Applicability of TDS on Discount on sale of Set-Top Boxes and Recharge Coupon Vouchers Income Tax Act, 1961, Section 40(a)(ia) Business disallowance under section 40(a)(ia)--Non-deduction of tax at source--Year-end provisions Conclusion: Year-end provisions were debited to profit and loss account and not added back ...

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Loss of stock due to ...

Landmark Judgment by Jaipur ITAT: ...

Benefit of Sec. 54G exemption ...

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Category: IT Judgement

Loss of stock due to fire: Forget Insurance, it is allowable as deduction in the year in which loss occurred

Landmark Judgment by Jaipur ITAT: No disallowance u/s 40A(3) if identity of sellers & source of cash payment were established.

Benefit of Sec. 54G exemption isn’t available if land was notified as urban land after its sale: High Court

No penalty if Declaration is made under section 132(4) by duly substantiating manner in which such undisclosed income was derived; including those undisclosed income in the return filed under section 153A and the payment of taxes is done thereon

Benefit of set off of loss of Partnership Firm: AO could examine applicability of section 79 only in the year in which loss was set off, and not in the year in which assessee claimed the loss to be carried forward.

Income declared during survey & Year of taxability: Assessment year for which declaration had been made or the year in which survey was conducted?

Statements recorded under section 132(4) cannot be made the sole basis for making additions unless it is supported by any documentary evidence

Premium for hedging foreign exchange fluctuations as regards loan availed of for purchase of fixed asset is a Capital on revenue expenditure?

CBDT instructs officers to levy for false entries in the books of accounts

Allowability of depreciation owned jointly with others

If Sales made by the assessee is not disputed, purchases could not be added considering them as bogus and only profit embedded in such purchases is required to be added

Valuation of shares for a consideration more than FMV: Validity if AO changed the method of valuation adopted by assessee

Taxation of retention Money retained by contracted, to be received only after conclusion of project

Assessment framed on erstwhile partnership firm which was a non-existent entity was void ab initio.

Assessee engaged in business of real estate & Method of accounting for recognizing profit by completed Contract Method vs. Percentage Completion Method

Applicability of TDS on Discount on sale of Set-Top Boxes and Recharge Coupon Vouchers

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