Convertible preference shares (CPS)/Cumulative Convertible Preference Shares (CCPS) are issued with the specific terms and conditions that after a certain period the CPS/CCPS shall be converted into equity shares (or other asset) at a pre-determined price or the price to be determined as per the prescribed formula. On conversion of a CPS/CCPS, preference shares are […]
SECTION 194A – CIT (TDS) vs. CANARA BANK (2018) 406 ITR 161 (SC)
Payment of interests by the banks to the State Industrial Development Authority is not liable to TDS in terms of section 194A(3)(iii)(f) The New Okhla Industrial Development Authority (NOIDA) (“Authority”) was constituted by Notification dated 17.04.1976 issued u/s. 3 of the Uttar Pradesh Industrial Area Development Act, 1976 (“1976 Act”). The Canara Bank made a […]
SECTION 254(1) – POWERS OF TRIBUNAL – SMT. SARIKA JAIN VS. CIT 407 ITR 254 (ALL HC)
The assessee had inducted capital in the firm in which she was a partner. During reassessment proceedings u/s. 147 of the IT Act, the assessee explained the source of the amounts received as gifts through banking channels and also produced the gift deeds. The statements of the two donors were also recorded u/s. 131. However, […]
SECTION 48 – MEANING OF FULL VALUE OF CONSIDERATION
Sec. 48 of the Act deals with the methodology to compute capital gains. Section 48 provides that the income chargeable under the head “Capital gains” shall be computed, by deducting cost of acquisition/improvement and expenditure incurred wholly and exclusively in connection with transfer from the full value of the consideration received or accruing as a […]
MASTECH TECHNOLOGIES P. LTD. vs. DCIT 407 ITR 242 (Del HC)
The assessee filed writ petition challenging the validity of two notices dated 23/03/2015 and 18/01/2016 issued u/s. 148 of the Act by the AO for the A. Y. 2008-09. During the pendency of the writ petition, the AO passed the reassessment order making additions. However, as per directions of interim order passed by the High […]
SECTION 54/54F EXEMPTION WHEN PURCHASE OF HOUSE IN JOINT NAME OR NAME OF THE RELATIVE
Section 54 provides for exemption from tax for capital gain arising from the transfer of long-term capital asset (being a residential house), if the assessee has, within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after […]
CIT v. Dynamic Enterprises [2013] 40 taxmann.com 318 (Karnataka HC-FB)
The assessee was a partnership firm engaged in the business of buying landed properties, constructions of buildings thereon, construction of industrial sheds, commercial complexes etc. It had purchased the property under a registered sale deed in the name of the firm. The firm was reconstituted. Five partners brought in cash by way of capital contribution. […]
NATURE OF RIGHTS OF PARTNERS IN PROPERTY OF THE PARTNERSHIP
The following decisions assist in understanding the concept of partnership, assets of partnership and rights of partners in property of the partnership. It also deals with the aspect whether partner’s right in the partnership asset is movable and immovable. The most authoritative statement of the law on this subject, is to be found in the […]
Addanki Narayanappa v. Bhaskar Krishnappa AIR 1966 SC 1300/ 1966 SCR (3) 400
In this case, the members of two joint Hindu families, which we may for the sake of convenience describe as “A” and “B”, entered into a partnership for carrying on business of hulling rice, decorticating groundnuts, etc. The capital of the partnership consisted, inter alia, of some lands contributed by the two families and in […]
TAXABILITY OF DEFERRED CONSIDERATION IN CAPITAL GAINS
Section 45 provides for the charge of tax in respect of capital gains. It provides that any profits or gains arising from the transfer of a capital asset shall be chargeable to income-tax under the head “Capital Gains”, and shall be deemed to be the income of the previous year in which the transfer took […]