Validity of DVO Reference: Rejection of Books is a Prerequisite for Section 69B Addition Facts The Dispute: The Assessing Officer (AO) made an addition to the assessee’s income under Section 69B representing the difference between the cost of construction reported by the assessee and the valuation estimated by the District Valuation Officer (DVO). Assessee’s Contention:… Read More »
SBI For creation of a new NRE / NRO / FCNR (B) deposit SBI For creation of a new NRE / NRO / FCNR (B) deposit The Form NRI-5.1 is a request document used by State Bank of India (SBI) customers to create specific types of non-resident deposits by debiting an existing savings account. The… Read More »
Rejection of Books Prior to DVO Reference: Validity of Section 69B Addition Facts The Dispute: The Assessing Officer (AO) made an addition to the assessee’s income under Section 69B representing the difference between the cost of construction reported by the assessee and the valuation estimated by the District Valuation Officer (DVO). Assessee’s Challenge: The assessee… Read More »
Deductibility of Payments to Encroachers as ‘Cost of Improvement’ under Section 48 Facts The Transaction: During AY 2023-24, the assessee-company sold a parcel of land and computed Long-Term Capital Gains (LTCG). The Deduction: In its computation, the company claimed a deduction for “Cost of Improvement” regarding compensation paid to various encroachers to secure vacant possession… Read More »
Provision for Actuarial Liabilities under Section 37(1): Ascertained vs. Contingent Liability Facts The Scheme: The assessee-company operated an unfunded defined benefit plan for its employees known as the Bhavishya Kalyan Yojana (BKY). The Accounting: Following Ind AS 19, the assessee created a provision for this scheme based on a report from an independent actuary and… Read More »
SBI For activating internet banking (INB) facility SBI For activating internet banking (INB) facility The registration form and attached terms of service for State Bank of India’s OnlineSBI detail the requirements and responsibilities for users seeking internet banking access. The key points are summarized below: 1. Registration and Setup Location-Specific: You must register at the… Read More »
Letting Out Property and Ancillary Receipts Not ‘Business’ per se: Exemption Upheld under Section 11 Facts The Profile: The assessee is a charitable trust registered under Section 12A, carrying out activities in line with its stated objects. The Revenue Stream: During AY 2014-15 and 2015-16, the trust derived income from letting out community halls, royalty,… Read More »
Limitation Period and Exclusions: Validation of Reassessment Notices for AY 2018-19 Facts The Discovery: An individual assessee with BOI NRE and PNB savings accounts did not file an ITR for AY 2018-19. Data from the Insight/NMS portal flagged significant foreign remittances, interest income, and time deposits. The Timeline: 22-03-2022: Notice under Section 148A(b) issued. 31-03-2022… Read More »
Deemed Dividend: Re-computation of Net Debit Balance Considering Day-to-Day Accrued Interest Facts The Parties: The assessee is a significant shareholder holding more than 10% shares in a closely-held company. The Transaction: The assessee maintained a running current account with the said company during the Assessment Year 2021-22. The Discrepancy: For a brief window of 8… Read More »
Seed Production as Agricultural Income: Control and Risk as Key Determinants Facts The Business: The assessee-company is engaged in the large-scale production, processing, and trading of hybrid seeds. The Model: The company leased land from farmers and entered into production agreements. Farmers performed operations under the strict guidance and supervision of the company’s employees. The… Read More »