Payments to teachers cannot be categorized as Fee for Professional Services under Section 194J

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 …

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 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 …

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

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 …

Supreme Court Ruling: No Penalty Under Section 271C for Belated TDS Remittance

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 …

Comprehensive Overview on Schedule I and Schedule II of FEMA on Capital Account Transactions

Introduction In the realm of financial regulations, the Foreign Exchange Management Act (FEMA) plays a pivotal role, particularly for residents outside India holding a Permanent Resident status. This blog aims to shed light on Schedule I and Schedule II of FEMA, focusing on capital account transactions of individuals falling under the purview of Persons Resident …

CBDT Records Unprecedented 8.18 Crore ITRs for AY 2023-2024

Introduction: In a remarkable feat, the Central Board of Direct Taxes (CBDT) achieved a historic milestone with an astounding 8.18 crore Income Tax Returns (ITRs) filed for the Assessment Year 2023-2024 by December 31, 2023. This noteworthy achievement, marking a 9% increase compared to the previous year, stands testament to the dedication of taxpayers and …

DGFT Extends Deadline for Mandatory E-Filing of Non-Preferential Certificate of Origin

In a recent development, the Directorate General of Foreign Trade (DGFT) has issued Trade Notice No. 36/2023-24 dated December 26, 2023, announcing the extension of the deadline for the mandatory electronic filing of Non-Preferential Certificates of Origin (CoO) through the Common Digital Platform. The new deadline has been set for December 31, 2024. This decision …

The Income Tax Department issued clarification regarding issuance of notices to taxpayers who have already filed Income Tax Returns.

Introduction: In the intricate world of taxation, communication from the Income Tax Department can sometimes raise eyebrows and cause a bit of concern. Recently, some taxpayers have received notifications from the department regarding transactions they’ve made. Before you jump to conclusions or feel a wave of panic, let’s delve into what these communications mean and …

Reopening assessment based on mistaken factual premises is unsustainable in law

Introduction: The Income Tax Appellate Tribunal, Delhi Bench “C,” recently adjudicated the appeal in the case of Kunwar Ayub Ali against the order of the Commissioner of Income Tax (Appeals)-II, Noida. The appeal, filed against the assessment order dated 27.03.2015 under Section 147/148 for the Assessment Year 2009-10, raised substantial issues concerning jurisdiction and the …

Delay in Filing Form 67 will not disallow Foreign Tax Credit

Introduction: In a significant development within the realm of income tax jurisprudence, the Income Tax Appellate Tribunal (ITAT), Delhi “A” Bench, comprising Shri Kul Bharat (Judicial Member) and Shri M Balaganesh (Accountant Member), rendered a noteworthy decision on April 17, 2023, in the case of Ajay Kumar Mishra vs DCIT. The appeal, originating from the …

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