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Introduction: In the intricate world of income taxation, the recent legal battle in the case of Sumit Bhattacharya v. ACIT (2020) has spotlighted the complexities surrounding the assessment of Stock Appreciation Rights (SARs). This blog post delves into the details of the case, shedding light on the evolving landscape of perquisites, particularly in the context …

Continue reading “Right of redemption in respect of stock appreciation rights (SARs) cannot be assessed as perquisite”

Introduction: In the intricate realm of income tax, the case of Jalendra Sahoo v. ITO brings to light a compelling scenario where what appears to be a simple salary payment transforms into a complex interplay of business income and taxation. Let’s delve into the details of this case, where the determination of whether certain payments …

Continue reading “Commission from employer is liable to be taxed as business income”

Introduction: In the ever-evolving landscape of international taxation, the case of DIT (IT) v. Sasken Communication Technologies Ltd. brings to light the intricacies surrounding non-compete fees paid to employees rendering services outside India. The crux of the matter hinges on whether these payments are taxable in India or the United States, unraveling a complex web …

Continue reading “Service rendered outside India  held to be not taxable in India-DTAA-India-USA”

Introduction: In the intricate world of income tax, the classification of assets as short-term or long-term can significantly impact the tax treatment of gains. A recent case, Neelu Analjit Singh (Mrs.) v. Add. CIT, sheds light on the complexities surrounding the holding period of shares of unlisted companies. Let’s delve into the details of this …

Continue reading “Gains on transfer of shares of Shares would be taxable as long-term capital gains when shares are held for more than 12 months”

Introduction: In a recent tax dispute between the District Intermediate Educational Office and the Income Tax Officer (TDS) [2023] 150 taxmann.com 439, the Hyderabad Tribunal has delivered a crucial judgment shedding light on the applicability of Section 194J in the context of payments made to contract teachers. The case revolved around whether the payments to …

Continue reading “Payments to teachers cannot be categorized as Fee for Professional Services under Section 194J”

Introduction: In a recent case, the Income Tax Appellate Tribunal (ITAT) shed light on the tax implications of joint property ownership when the sale deed does not specify the individual shares of the co-owners. The case of Smt. Shivani Madan v. ACIT [2023] 147 taxmann.com 423 (Delhi – Trib.) serves as a crucial precedent in …

Continue reading “If the sale deed of a joint property fails to specify the wife’s share, 50% of the rent is taxable in her hands: ITAT”

Introduction: In a recent decision, the Mumbai Tribunal affirmed the imposition of penalties on a taxpayer under the Black Money Act (BMA) for the non-disclosure of foreign assets in the Schedule FA of Income Tax Returns (ITR). The case of Ms. Shobha Harish Thawani v. Jt. CIT [2023] 154 taxmann.com 564 (Mumbai – Trib.) underscores …

Continue reading “Mumbai Tribunal Upholds Penalty Under Black Money Act on Failure to Disclose Foreign Assets in ITR”

Introduction: In a landmark judgment, the Supreme Court, in the case of US Technologies International (P.) Ltd. v. CIT [2023] 149 taxmann.com 144 (SC), clarified that Section 271C penalties cannot be imposed for belated or non-payment of Tax Deducted at Source (TDS). The ruling sheds light on the strict interpretation of penal provisions and provides …

Continue reading “Supreme Court Ruling: No Penalty Under Section 271C for Belated TDS Remittance”