The case involves an assessee engaged in the business of readymade garments who declared business income of Rs. 3,05,400 and interest income of Rs. 1,57,086. The assessee also deposited cash Rs. 15,68,000 in the bank, which was not fully explained during the assessment proceedings. The Assessing Officer made an addition of Rs. 3,00,000 to the …
The Assessee claimed that the gifts considered for tax purposes were exempted as they were received from Non-Resident Indians (NRI), and the addition of Rs. 46,44,150/- by the respondent was illegal and unjustifiable. The Assessment Officer held that the NRI gifts were not genuine, and the Income Tax Appellate Tribunal upheld the assessment, confirming the …
Continue reading “Gift From Non-Resident Indians (NRI): A Important Ruling Under the Income Tax Act”
The case revolves around the issuance of a new permanent account number (PAN) card to an assessee by mistake, and the subsequent cancellation of the new card upon the assessee’s request. The issue arises when the assessee is served with a show-cause notice alleging that he made transactions using the cancelled PAN without disclosing them …
Continue reading “Show Cause Notice Under Section 148A(b), Duplicate PAN Card”
The Mumbai ITAT has allowed an individual Assessee’s appeal and held that a mere mention of the residential status as a resident in the original return of income cannot be the sole ground for treating the Assessee as a resident. The Assessee had declared his residential status as non-resident in the income tax return for …
Shoppers Stop, a well-known retail chain, has won a legal battle against the Revenue authorities. The Mumbai Income Tax Appellate Tribunal (ITAT) has upheld the decision of the Commissioner of Income Tax (Appeals) (CIT(A)) in a case involving the applicability of Section 194C of the Income Tax Act. The ITAT held that the payments made …
For the assessment year 1981-82, the Income Tax Officer (ITO) discovered that the wife of the assessee had entered into an agreement to purchase a flat, but being a housewife, she had no independent source of income. The ITO thus held that the investment made in purchasing the flat, as well as any income or …
A power of attorney (POA) is a legal document that allows someone to act on behalf of another person. In the case of an NRI (Non-Resident Indian), a power of attorney can be particularly useful as it allows them to appoint someone in India to act on their behalf. This is especially helpful in situations …
Tax treaties are agreements between two countries to avoid double taxation of individuals or companies that may have tax obligations in both countries. Non-Resident Indians (NRI) can benefit from tax treaties in several ways. In this response, We will explain what a tax treaty is, how it works, and the various tax treaty benefits available …
A tax treaty, also known as a double tax treaty or a tax agreement, is a bilateral agreement between two countries that aims to prevent double taxation of income earned by residents of one country in the other country. It establishes the rules for taxing different types of income, such as wages, dividends, and capital …
Continue reading “What is Tax Treaty and How Treaty Benefits To Non-Resident Indians (NRIs)”
When filing income tax, there are several situations that can result in a person being liable to pay interest, such as when there are delays or defaults in the process. The different situations that can lead to paying interest are defined by specific sections of the law, with each section applying to different circumstances. Sections …
