Posts by Team RPA
S. 2(47)(v): Transfer under a dev. ag. effects on handing over possession. Capital gains chargeable even if no consideration recd
In AY 2003-04, the assessee entered into an agreement with Bhavya Constructions pursuant to which he agreed to transfer the land in consideration of the developer giving him four flats in the developed area. The assessee received a token advance and handed over possession of the land. The developer obtained the approval of the municipality…
Read MoreCalcutta HC : Expl to s. 73: Speculation loss on transactions in derivatives can be set off against the gains of delivery shares
In AY 2005-06, the assessee, a share broker, entered into derivatives in which it suffered losses. The said losses constituted “speculation loss” (prior to the exclusion of derivatives from the ambit of speculative transactions under clause (d) of s. 43 (5) w.e.f. AY 2006-07). The assessee claimed that the said speculation loss was eligible to…
Read MoreThe limitation u/s 153 re-starts from date of stay vacation order of HC and not from date of communication – All. HC
The Hon’ble Allahabad High Court has answered an important question regarding the limitation period of assessment. In this case, the assessment proceedings were stayed by High Court. But lateron the stay was vacated since the assessee failed to bring on record the necessary legal heirs. The order of HC vacating the stay was passed on…
Read MoreCalcutta HC holds damages paid for clearing title deductible for computing Capital Gains
The assessee entered into an agreement dated 2nd September, 2004 with one, Bhagyalakshmi Commercial Company Pvt. Ltd. Under the aforesaid agreement the latter agreed to sub-lease the flat nos. 3b and 3c at premises no.5, Lowdon Street, Kolkata to the assessee. The assessee on his part entered into an agreement dated 5th May, 2005 with…
Read MoreGuj HC holds no 14A disallowance in absence of any tax free income
No disallowance u/s 14A & Rule 8D can be made if the assessee does not have tax-free income & no claim for exemption is sought In AY 2009-10, the assessee had investments in tax-free securities on which it had earned no income. It claimed that as there was no tax-free income, no disallowance u/s 14A…
Read MoreNo 14A disallowance if no tax free income – All HC
No s. 14A & Rule 8D disallowance if there is no tax-free income In AY 2008-09, the assessee claimed that no s. 14A & Rule 8D disallowance could be made on the ground that (i) the assessee had not earned any tax-free income during the year and (ii) the assessee had sufficient surplus fund and…
Read MoreDel HC says rectification u/s 154 of intimation u/s 143(1) possible even after scrutiny assessment
The Hon’ble Delhi High Court in a decision dated 06.05.2014 has held that rectification u/s 154 of an intimation u/s 143(1) is possible even after scrutiny assessment has been concluded. The Court held as under : “It is apparent from the bare reading of the above provision that the power of rectification extends to amendment…
Read MoreP&H HC applies Sec. 55(3) for computation of cost, in absence of same from previous owner
HC upholds application of Sec. 55(3) for computation of cost of acquisition, in absence of its ascertainment in hands of previous owner; Rejects assessee’s plea for non-taxability of capital gains since cost of acquisition not ascertainable; Approves AO’s action in adopting fair market value as on April 1, 1981 as cost of acquisition u/s 55(3);…
Read MoreGujarat HC allows interest u/s 36(1)(iii) following SA Builders
The Hon’ble Gujarat High Court has allowed the claim of Interest u/s 36(1)(iii) following the judgement of Hon’ble Supreme Court in the case of S.A. Builders 288 ITR 1. For complete text of judgement, click here 36(1)(iii)-Gujarat HC
Read MoreBom HC holds courtyard can’t be included for 1500 Ft. defined in 80-IB(10)
In a recent decision dated 11.03.2014 rendered by Hon’ble Bombay High Court (Goa Bench) in the case of Commonwealth Developers has held that the area of Rear Courtyard which is open to sky but has only a boundary wall can not be included in built area limit of 1500 Sq. Ft. provided in Sec 80-IB(10)…
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