December 2020
- Capital gains Exemption u/s 54(1) Sale of capital asset and acquisition of a residential house Meaning of a residential house in section 54(1) Includes the plural Purchase of two residential properties Assessee entitled to benefit of exemption Amendment substituting a by one Applies prospectively
- Capital gains Assessability Slump sale Section 2(42C) Assets transferred to subsidiary company in accordance with scheme u/s 394 of the Companies Act Assessee allotted shares Scheme approved by High Court No slump sale for purposes of capital gains tax
- Company Book profits Capital gains Sections 45, 48, 115JB Computation of book profits u/s 115JB Scope of section 115JB Indexed cost of acquisition to be taken into account in calculating capital gains
- Offences and prosecution Wilful attempt to evade tax Sections 132, 153A, 276C(2), 276CC Ingredients of offence Failure to furnish returns and pay self-assessment tax as required in notice Delayed payment of tax pursuant to coercive steps cannot be construed as an attempt to evade tax Only act closely connected with intended crime can be construed as an act in attempt of intended offence Presumption would not establish ingredients of offence Prosecution quashed
- Offences and prosecution Wilful attempt to evade tax Section 276C(2) Delay in payment of tax Admission of liability in return and subsequent payment of tax Criminal proceedings quashed
- Reassessment Death of assessee Validity of notice of reassessment Sections 147, 148, 159, 292BB Notice issued to deceased person is not valid Not a defect curable by section 292BB Representative assessee Legal representative Scope of section 159 No legal requirement that legal representatives should report death of assessee to income-tax department
- Revision Condition precedent Sections 54F, 263 Assessment order should be erroneous and prejudicial to Revenue Capital gains Exemption u/s 54F Assessee purchasing three units in same building out of consideration received on account of joint development A.O. allowing exemption taking one of plausible views based on inquiry of claim and law prevalent Revision to withdraw exemption Tribunal holding Commissioner failed to record finding that order of assessment erroneous and prejudicial to Revenue Tribunal order not erroneous
- Settlement of cases Section 245D Powers of Settlement Commission Difference between sub-sections (2C) and (4) of section 245D Procedure under sub-section (2C) summary Issues raised in application for settlement, requiring adjudication Application cannot be rejected under sub-section (2C) of section 245D
- Sections 50, 112 Capital gains computed u/s 50 on transfer of buildings which were held for more than three years are taxable @ 21.63% u/s 112 and not @ 32.45%, the normal rate
- Section 45, Rule 115 Foreign exchange gain realised on remittance of amount received on redemption of shares, at par, in foreign subsidiary is a capital receipt not liable to tax
- Section 23, Rule 4 Amount of rent, as per leave and license agreement, which is not received cannot be considered as forming part of annual value merely on the ground that the assessee has not taken legal steps to recover the rent or that the licensee has deducted tax at source thereon
- CIT(E) cannot pass an order denying registration u/s 12AA (without following the procedure of cancellation provided in the Act) from a particular assessment year by taking the ground that lease rental income exceeding Rs. 25 lakhs received from properties held by the trust violated provisions of section 2(15) when such registration was granted in the same order for prior assessment years
- Assessee being mere trader of scrap would not be liable to collect tax at source u/s 206C when such scrap was not a result of manufacture or mechanical working of materials
- [ITAT, Chennai B Bench, dated 20th March, 2008 in ITA Nos. 1179/Mds/2007, 1180/Mds/2007 and 1181/Mds/2007; Chennai B Bench, dated 18th May, 2009 in ITA No. 998/Mds/2008 for the A.Ys. 1999-2000, 2000-2001, 2001-2002 and 2005-2006, respectively] Letting of immovable property Business asset Rental income 'Income from Business' or 'Income from House Property
- [Income Tax Appellate Tribunal, 'C' Bench, Chennai, dated 20th April, 2017 made in ITA Nos. 1871/Mds/2016, 2759/Mds/2016 and 1870/Mds/2016; A.Ys. 2007-2008 and 2008-2009] Reassessment Reopening beyond four years Original assessment 143(3) TDS not deducted Auditor responsibility vis-a-vis audit report failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment
- Explanation 7 to section 9(1)(i) Small shareholder exemption introduced by this Explanation inserted by Finance Act, 2015 is retrospective in nature
- Articles 8 and 24 of India-Singapore DTAA Limitation of Relief (LOR) provisions (Article 24 of India-Singapore DTAA) are not applicable if (a) India does not have right to tax income pursuant to treaty provision, (b) income is taxed in Singapore under accrual basis. Accordingly, Article 24 is not applicable to shipping income earned by Singapore tax resident which is not taxable in India as per Article 8 of DTAA as also taxable on accrual basis in Singapore
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