An oft quoted aphorism states that the only two things certain in life are death and taxes. The truth of this statement comes out from the fact that under the Income Tax Act of India, profits derived from illegal activities of an assessee are also taxable. However, this brings to another interesting conundrum - if … Continue reading The Taxability of Crime
More often than not, income tax cases can devolve into sordid matters involving deceit, dishonesty and general distasteful behavior. But once in a while, you may stumble upon a heart-warming (pun fully intended) story in tax, like I did when I chanced upon the case of Shanti Bhushan vs. CIT on Riverus. Shanti Bhushan, an … Continue reading The Heart of the Matter
Agricultural income in India is categorised as a valid source of income and includes: income from sources that comprise agricultural land, income from buildings on or related to an agricultural land and commercial produce from an agricultural land. Agricultural income is defined under section 2(1A) of the Income Tax and Act and such income earned by a … Continue reading Income from Agriculture: 5 Questions and their Answers
Income from house property is chargeable to tax under Section 22 of the Income Tax Act. As per Section 22, tax on house property is chargeable on the annual value of any property, consisting of any buildings or lands connected to it, owned by the assessee. The determination of annual value in this case is done on … Continue reading Income from House Property: 4 Questions and their Answers
A judgment, ideally, is a prime example of how one should structure any piece of text, especially legal texts. It is supposed to be coherent and concise, and importantly, follow a trail that takes the reader smoothly from one point to the other. While a judgment may simply seem like a collection of legalese to … Continue reading Anatomy of an Indian Tax Case
In the case of DCIT v. Shashikala Ramkumar the Hyderabad bench of the ITAT has come down heavily on the revenue officials for not applying their minds while preferring appeals. The Bench remarked that appeals are being filed on grounds that are not meritorious while invoking wrong provisions so as to raise unnecessary demands.
The Delhi bench of the ITAT has held in the case of Ravina Khurana vs. DCIT that imposing the penalty without mentioning the grounds specified in the notice issued under section 274 of the Income Tax Act is not justifiable and that the AO has to specifically mentioned under which limb of the Act the penalty proceedings … Continue reading Penalty notice under section 274 must mention the grounds under which penalty is imposed
ITAT Kolkata has held in the case of Poonam Bhotika vs. ITO Ward 43(1) Kolkata that Commissioner of Income Tax ( CIT ) does not have power under section 263 to remit the matter to the AO without giving a finding that the order was erroneous or prejudicial to the interest of revenue.
The Kolkata bench of ITAT has held in the case of M/s. Misrilall Mines Pvt. Ltd vs. DCIT CIRCLE 5(1) Kolkata, that peripheral development expenditure as part of CSR is to be considered as revenue expenditure. It also held that if such expenditure was incurred by the company wholly and exclusively for the purposes of the … Continue reading Peripheral Development Expenditure as part of CSR to be considered revenue expenditure
In the case of Commissioner of Income Tax, Chennai vs. S. Ajit Kumar, the Supreme Court has held that any material unearthed during a survey at the premises of a connected person can be included in block assessment of the assessee if such survey was conducted simultaneously to proceedings at the assessee's premises.