Author: Akshay Sharma

The assessee is an individual engaged in the business of plastic products. He filed a return of income on 15th October 2015 at a total income of Rs.1,22,83,260/-. The assessment under section 143(3) of the Act was passed on 21st December 2018. The learned Assessing Officer noted that the assessee has not shown interest of Rs.2,97,122/- in the income. The assessee submitted that these incomes are credited to the assessee’s account, however as the income belongs to Jolly Containers, where the assessee is a partner. Therefore, the same is chargeable to tax there. The learned Assessing Officer rejected the contention…

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This month Income Tax appellate Tribunal Delhi branch held that the assessee failed to provide call log details to verify the claim under the provision of Income Tax Act 1961 hence disallowing telephone expenditure claimed as business expenditure. Brief facts of the case are that an Ad-Hoc addition of 4,00,000 rupees was made by the assessing officer in the assessment order. the assessee here has challenged the ad hoc addition made by the Assessing Officer (AO) and has stated that the amount claimed under the expenses was neither fully vouchered nor verified, so it cannot be said that the amounts…

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In order to reduce the number of cheque bounce cases under Section 138 of the Negotiable Instruments Act, it was important that the deadline for cheque bounce cases was clearly defined. The Supreme Court has ordered the setting up of pilot courts containing retired judges to deal with pending cheque bounce cases. To help solve more cases about cheque bounces complete more quickly, the Supreme Court has ordered that a pilot court be set up for this. The judges in charge will come from retired high courts. The bench comprising Justices L Nageswara Rao, BR Gavai, and S Ravindra Bhat…

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The brief facts of the case are that during the year, the assessee sold agricultural lands for total consideration of 10,30,200/-. The gain on sale of such agricultural lands amounting to 6,60,504/- was claimed as not taxable in the return of income under the head “Exempt Income” since the said agricultural lands at the time of sale were situated beyond 8 km from the local limits of Vadodra Municipal Corporation (VMC). During the course of assessment proceedings, the assessing officer issued a show-cause notice as to why provisions of section 50C should not be applied to the sale of such…

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The petitioner had submitted an application for an education loan to the Manager of the State Bank of India. The petitioner had submitted all documents required by the Bank in support of the application. The Bank, however, rejected the loan application submitted by the petitioner. The reason for the rejection of the application for an education loan was given that the CIBIL score of the co-applicant (parents) is not up to the mark. In response, The petitioners contended that the Reserve Bank of India had affirmed that an education loan is a futuristic loan and the aim of the educational…

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Brief facts of the case are that the assessee sold immovable property situated at Jaipur for sale consideration of Rs.14,75,000/- on 11/10/2010. The value of which was evaluated at Rs.14,79,960/- by the Stamp Duty Authority. Out of sale consideration of Rs. 14,75,000/- the assessee made an investment of Rs. 7,48,000/- in the purchase of new residential house property in the name of his wife name, within the prescribed time limit as prescribed under the provisions of section 54F of the Act. Accordingly, the assessee claimed exemption u/s 54F of the Income-tax Act. Consequently, no capital gain was chargeable under the…

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The Government has extended the due date for filing GSTR-3B for the month of April as taxpayers faced a technical glitch on the Goods and Service Tax (GST) portal. This information was tweeted by CBIC: https://twitter.com/cbic_india/status/1526594411404341248 CBIC Tweeted The Central Board of Indirect Taxes and Customs (CBIC) updated that Infosys had reported a technical glitch while generating April 2022 GSTR-2B which is an auto draft Input Tax Credit statement. GSTR-2B is available to every registered Taxpayer based on the information submitted by their suppliers in return. Based on GSTR-2B Taxpayers can claim Input Tax Credit (ITC) while furnishing returns and…

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The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has held that the Addition cannot be made against an individual who is earning income from salary and has deposited an amount of Rs.2,30,000/- during the demonetization period, as per the relevant CBDT circular. The fact of the case is that the Appellant is a qualified professional (ICWA). The main source of income of the appellant is a salary income and the appellant is regularly filing ITR. For the concerned assessment year, the appellant had filed the ITR declaring a gross total income of Rs. 5,13,458/-. In the year under…

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The Central Board of Direct Taxes (CBDT) issued a notification, amending the Income Tax Rules to make it mandatory to provide a Permanent Account Number (PAN) or Aadhaar for a specific set of transactions. As per the notification, a person must obtain and quote a PAN when making any Cash deposit that sums up to Rs 20 Lakh during a year, or such transactions are done in one or more bank accounts of a person Below are the transitions which was specified in the Notification: (a) cash deposit or deposits aggregating to twenty lakh rupees or more in a financial…

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Fixed Deposits (FD) have always been considered one of the safest havens for investors’ money. RBI data shows that inflation has remained high over the last few years, however, a look at the real rate of return on FDs would tell a different story. In the current scenario, where inflation is ruling high, the so-called “real” or “inflation-adjusted” return on investments such as Fixed Deposits (FDs) in India falls short when compared to other investment options. The rate of interest (%) offered by banks on FDs is around 5-6%. However, considering the current rate of Retail inflation (around 7.9%), The…

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