Right to set-off loss is a “vested right” which is available despite amendment in year of set-off
Jan 19, 2010 Income Tax Case Laws
In the Case of: Geetanjali Trading Limited Vs. The Income Tax Officer, Decided By : ITAT Mumbai, Appeal No: I.T.A. No. 5428/ MUM/ 2007.
In AY 2002-03, the assessee suffered a long-term capital loss. U/s 74(1) as it then stood, such loss could be carried forward and set off against all capital gains including short-term capital gains. S. 74 was amended in AY 2003-04 to provide that long-term capital loss could only be set-off against long-term capital gains and not against short-term-capital gain.
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Tags: 8 years, business loss, enactment, indefinite period, long term capital, long term capital gains, losses, principle, reliance, sadiq, short term capital gain, short term capital gains, speculation
Bonus stripping under the Income tax lens
Jan 13, 2010 Income Tax
After taxing investors for dividend stripping, the Income Tax (I-T) Department is gearing up to tax bonus stripping. Official sources say scrutiny of returns filed by companies, brokers and individuals active in the stock markets and in possession of shares revealed wide use of this mechanism to evade tax.
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Tags: bonus issue, bonus shares, income tax act, income tax act 1961, indian income tax, indian income tax act, individual investors, long term capital, long term capital gains, market transactions, mutual fund units, Scrutiny, stock markets, tax avoidance, Tax Exemption, tax net, tax purposes
Set off of long term capital loss with indexation against long term capital gains without indexation is allowable
Jan 3, 2010 Income Tax Case Laws
CASE LAW DETAILS
Decided by: ITAT, MUMBAI BENCH `B’, MUMBAI, In The case of: Keshav S. Phansalkar v. ITO, Appeal No.: ITA NO. 3261/MUM/2007,
Decided on: JUNE 3, 2009
RELEVANT PARAGRAPH
8. Section 70(3) of the Act postulates that for any assessment year where there is a loss in respect of long term capital asset, the asscssee shall be entitled to have the amount of such loss set off against the income, if any fas arrived at under a similar computation) made for the assessment year in respect of any other long term capital asset.
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Tags: capital asset, hindu undivided family, incom, Income Tax, long term capital, long term capital gains
IT department investigating tax evasion by showing bogus investment losses, May take action against chartered accountants
Jan 2, 2010 Income Tax
Income tax department in the past has stumbled up on many strange things, but nothing as strange as a company exclusively providing bogus stock contract notes to evade taxes, a trail that may lead to it knocking on the doors of many auditors. The Mumbai I-T department estimates that around Rs 1,000 crore of taxes may have been evaded by producing these bogus investment losses, and it now knows the beneficiaries too, a senior department official in the know of things said.
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Tags: bogus bills, chartered accountants, contract notes, duty free shops, Income Tax raids, infrastructure companies, investment losses, long term capital, long term capital gains, preventive measure, real estate developers, stock contract, tax evaders, Tax Evasion
In case of gifted Assets, indexation benefit is available from the year of acquisition of the previous owner
Dec 30, 2009 Income Tax Case Laws
This article summarizes a recent ruling of the Special Bench (SB) of the Mumbai Income Tax Appellate Tribunal (ITAT) [ITA No. 7315/Mum/2007] in the case of DCIT vs. Manjula Shah (Taxpayer) which held that, in the case of gifted capital asset, indexation benefit is available to a donee from the year of its acquisition by the previous owner. The SB adopted a purposive construction of the definition of ‘Indexed Cost of Acquisition’ (ICOA) by looking at the scheme of the Indian Tax Law (ITL), which seeks to grant the benefit of cost and holding period of the previous owner to the donee.
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Tags: acquisition, capital asset, consumer price index, dcit, donee, financial assets, holding period, Income Tax, indexation, inflation index, itat, itl, long term capital, long term capital gains
Taxability of the income from the sale of shares in the hands of resident in Mauritius
Dec 22, 2009 Income Tax Case Laws
Recently, the Delhi bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of DDIT v. M/s Saraswati Holding Corpn. Inc. (2009-TIOL-529-ITAT-DEL) ruled on the taxability of the income from the sale of shares in the hands of resident in Mauritius. The Tribunal held that the taxpayer holding tax residence certificate of Mauritius, was entitled to the exemption provided under Article 13(4) of the India-Mauritius tax treaty (the tax treaty). The Tribunal relied on the decision of the Supreme Court in the case of UOI v. Azadi Bachao Andolan [2003] 236 ITR 706 (SC).
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Tags: appellate tribunal, azadi, bachao andolan, CBDT, contentions, ddit, direct taxes, effective management, Income Tax, itat, long term capital, long term capital gains, residence certificate, shareholders
Consideration for permission to use TDR / FSI not chargeable to tax: ITAT Mumbai
Dec 19, 2009 Income Tax Case Laws
The assessee co-op housing society gave permission to a developer to construct 2 floors and 8 flats on the building belonging to the society by using the TDR / FSI available to the developer. In consideration, the developer paid Rs. 26 lakhs to the assessee and Rs. 66 lakhs to its members aggregating Rs. 92 lakhs.
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Tags: acquisition, chs, co op housing, dcit, development contracts, housing society, hsg, itat, judgement, long term capital, long term capital gains, shailaja, shanti, srinivasa, tdr
Even exempt capital gains are includible in “book profits”
Dec 16, 2009 Income Tax Case Laws
The assessee earned long-term capital gains of Rs. 40.57 L which was not chargeable to tax u/s 54EC. As the said gains were credited to the P&L A/c, the assessee excluded the gains whilst computing “book profits” u/s 115JB in view of the Special Bench judgement in Sutlej Cotton Mills 45 ITD 22 (Cal) (SB) where it had been held that non-taxable capital receipts had to be excluded from book profits. The AO and the CIT (A) rejected the claim. On appeal by the assessee HELD dismissing the appeal:
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Tags: apollo tyres, book profits, capital receipts, cotton mills, Depreciation, hcl comnet, judgement, judgements, jurisdiction, khaitan, long term capital, long term capital gains, net profit, sutlej, taxable capital, taxable profits