Private Trust Exemptions and Erroneous Advance Tax Receipts (AY 2022-23) I. Trust Beneficiary Exception for Relatives (Section 56(2)(x)) The assessee, a private trust, received a settlement of shares from its settlor. Under Section 56(2)(x), gifts of shares are generally taxable, but an exception exists for property received by a trust created solely for the benefit… Read More »
No Remission or Cessation of Liability on Loan Assignment to ARC 1. The Core Dispute: Loan Assignment vs. Loan Waiver The Assessing Officer (AO) observed that the assessee’s loan was transferred from the original lender to an Asset Reconstruction Company (ARC) at a “discounted value.” The AO interpreted this discount—the difference between the total outstanding… Read More »
Case Analysis: Retrospective Disallowance of Employees’ PF/ESI Contributions (AY 2018-19 to 2019-20) 1. The Core Dispute: Section 36(1)(va) vs. Section 43B The assessee delayed the deposit of employees’ contributions to the Provident Fund (PF) and Employee State Insurance (ESI). While these deposits were made after the statutory due dates (e.g., the 15th of the following… Read More »
Depreciation on Goodwill in a Slump Sale (AY 2020-21) 1. The Core Dispute: Valuation vs. Commercial Reality The assessee-company acquired a manufacturing unit as a going concern through a slump sale. The acquisition price exceeded the value of individual tangible assets, and the difference was recorded as goodwill. Assessing Officer’s View: The AO disallowed the… Read More »