Skip to main content

Blog # 12. Half Monthly Digest (Income Tax) - July 2017

In this edition, we have analysed few orders. A very brief catch note of the related section of The Income Tax Act, 1961, indicates the contents of the order. For reading the whole order, click on the hyperlink attached with the name of the order.

S.221(1). Penalty u/s 221(1) cannot be levied on the interest component charged on “tax”.




221(1) – Penalty u/s 221(1) cannot exceed the amount of “Tax in arrears”


S.37(1). Predevelopment expenses which are directly identifiable with the operations and maintenance of existing business shall be treated as revenue expenses, irrespective of treatment given in the books of accounts.




44AA. Separate books of accounts would be justified only when several distinct business are carried on and not when several business activities are carried on within the same business.



S.68. Where the assessee during the course of assessment proceedings, produced all the documentary evidences to prove identity, genuineness and creditworthiness of share applicants, addition u/s 68 of the Act cannot be made on the ground that the appellant could not produce share applicants in person.



Disclaimer:  The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we have taken due care and precautions in providing accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Errors can occur. We assume no liability or responsibility for any errors or omissions in the contents contained herein neither does it give any guarantee of completeness, accuracy or timeliness. The information and data contained herein may be used at your sole risk after ensuring its accuracy, correctness or completeness.

Quotes : 
Everybody pities the weak, Jealousy you have to earn

Comments

Popular posts from this blog

Blog # 26. Concept of Real Income under the Income Tax Act, 1961

  What is Income ? Before understanding the concept of Real Income, it shall be important to go through the the term “Income” and “Real”. Income is defined under S.2(24) of the Income Tax Act, 1961(Hereinafter referred as “the Act”). The definition as provided under the Act is an inclusive definition so as to cover up all the usual as well as unusual items, however it certainly does not define it in a way that we can be said it to be precise. The same can be understood by various Judge Made Laws. The first and the lead amongst them is a Privy Council Judgment in the case of Kamakshya Narain   Singh CIT 11 ITR 513 (PC)         Facts The assesse was a “Raja” gave mining lease and He received payments by way of royalty for coal mines leased out to various lessees. The case of the Assessee was that this royalty income received by the Assessee was nothing but the recoupment of the resources which shall be exhausted by the end of the le...

Blog # 28. Principles of Natural Justice In Indian Constitution

In The Constitution of India, nowhere the expression Natural Justice is used. However, golden thread of natural justice sagaciously passed through the body of Indian constitution. Preamble of the constitution includes the words, ‘Justice Social, Economic and political’ liberty of thought, belief, worship... And equality of status and of opportunity, which not only ensures  fairness in social and economical activities of the people but also acts as shield to individuals liberty against the arbitrary action which is the base for principles of Natural Justice. Apart from preamble Art 14 ensures equality before law and equal protection of law to the citizen of India. Art 14 which strike at the root of arbitrariness and Art 21 guarantees right to life and liberty which is the fundamental provision to protect liberty and ensure life with dignity. Art 22 guarantees natural justice and provision of fair hearing to the arrested person. Directive principles of state Policy specially Art...

Blog # 27. Conditional Legislation

  Law reaches its end of serving justice and equity only if the medium of transportation and execution of the equivalent is prime. Having a law just in books and having a working, known, very much actualized and executed law are two different circumstances. Former is an instance of legislature at work and the latter is that of legislature and executive working together for reaching the end. Thus, conditional legislation is that thin line where these organs function independently as well as are interdependent in their exercise. Since, lawmakers cannot be present everywhere at every time, they delegate their legislative powers to subordinates where they can implement law to the extent of power they have been delegated. When conditions are added to such delegated power in matters of implementation, it becomes a conditional legislation. In the Venn diagram of Legislation , if delegation of power is a subset then conditional legislation is a sub-sub-set shown by “A” , “B” and “C” respec...