Alert: Second instalment of Advance Tax is due

As per section 208 of the Income Tax Act, advance tax is the income-tax which is payable in instalments if the tax liability in a financial year exceeds Rs. 10,000. Advance Tax is payable in the year in which the income is received. Under the scheme of advance tax payment, income received under every head … Continue reading Alert: Second instalment of Advance Tax is due

Penalty notice under section 274 must mention the grounds under which penalty is imposed

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

Peripheral Development Expenditure as part of CSR to be considered revenue expenditure

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

Material found during survey of premises of connected person can be included in block assessment of assessee

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.

Assessee may file revised return of income after receiving notice from IT Dept.

ITAT Mumbai in the case of Mahesh H. Hinduja vs. Income Tax Officer Ward–21(3)(3), Mumbai has held that an assessee can file a revised return of income after receiving a notice from the Income Tax authorities, and any tax benefit claimed by the assessee in such return cannot be denied merely because it was claimed … Continue reading Assessee may file revised return of income after receiving notice from IT Dept.