Can deduction be denied for partial cultivation on agricultural land?

Case: Rajendra Bastimal Chordiya vs Income Tax Officer, ITAT, Pune Listen to Rajendra Bastimal Chordiya vs Income Tax Officer, ITAT, Pune case summary and stay updated any time anywhere. Background: Assessee’s claim of deduction u/s 54B of the Act related to the sale of agricultural land was denied by the AO as: out of the total … Continue reading Can deduction be denied for partial cultivation on agricultural land?

Forum Review: Authority for Advance Rulings

While most of the preliminary tax litigation in India is centred around the ITATs, the Authority for Advance Rulings (AAR) also plays in important role in resolving tax issues before they get a chance to hit proper litigation. It is an independent quasi-judicial body which can give give rulings on taxation queries presented by Non … Continue reading Forum Review: Authority for Advance Rulings

Most Cited Unreported Judgments

Last week in our article series we discussed the oft overlooked unreported judgments. After establishing how these judgments are a prominent part of the corpus of judicial literature in India, and a valuable resource for any diligent practitioner, we thought we’d trawl our database to uncover the most popular unreported judgements. These judgements on important … Continue reading Most Cited Unreported Judgments

Deductions for Co-operative Societies: 5 questions and their answers

Section 80P of the Income Tax Act, 1961 provides for deduction in respect of income of co-operative societies. These incomes and the respective conditions are briefly as follows- 100% of the profit and gains attributable to certain businesses. 100% of the profit and gains of primary society carrying out supply of milk, oilseeds, fruits or … Continue reading Deductions for Co-operative Societies: 5 questions and their answers

Capital Expenditure vs Revenue Expenditure

The question about the nature of expenditure has always been a highly contested issue in tribunals and courts in India. Characterising an expenditure as revenue or capital has tax implications. Revenue expenditure is taken into account while computing taxable profits and would be eligible for a tax deduction whereas on capital expenditure only depreciation can … Continue reading Capital Expenditure vs Revenue Expenditure

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

Payment of management charges not allowable as a deduction u/s 40(a)(i)

The Mumbai bench of the ITAT in the case of Lloyd’s Register Quality Assurance Ltd v. Dy. Commissioner of Income Tax has held that disallowance under Section 40(a)(i) cannot be made for payment of management charges under Section 44C of the Income Tax Act,1961. Read More: Assessee may file revised return of income after receiving notice from … Continue reading Payment of management charges not allowable as a deduction u/s 40(a)(i)

Assessee not to be penalized if TDS challan mentions PAN instead of TAN

In the case of Income Tax Officer-2(5) Lucknow vs. M-s Umatech, the Lucknow ITAT has held that there can be no levy of penalty if the assessee has wrongly mentioned their PAN number of the TDS challan instead of the TAN number as this would amount to a mere technical error. Also Read: Broadcast companies not … Continue reading Assessee not to be penalized if TDS challan mentions PAN instead of TAN