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Foreign Shareholding Duly Disclosed Not Taxable Under Black Money Act; Debit Note Not Undisclosed Asset/Income Issue: Whether a foreign shareholding, acquired and duly disclosed in a prior assessment year’s income tax return, can be subsequently taxed as an “undisclosed foreign asset” under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act,… Read More »

Rental Income from Day-to-Day Lettings Treated as Business Income; Unexplained Property Investment Taxed Under Section 69 Issue: Whether rental income from premises given on day-to-day basis, with additional facilities provided, should be treated as “income from house property” or “business income.” Whether an undisclosed portion of the consideration for an immovable property, admitted during a… Read More »

Unsubstantiated Ad Hoc Disallowance Under Section 40A(2) Deleted. Whether an ad hoc disallowance of expenditure under section 40A(2)(a) by the Assessing Officer, based on a mere suspicion that payments made by a society to related companies for services were excessive and unreasonable, is sustainable without any evidence or comparable data. Facts: For the assessment year… Read More »

Collection of Donations by Individual Taxable Under Section 56(2)(x) and Subject to Section 175 Due to Personal Use of Funds. Issue: Whether the provisions of section 175 of the Income-tax Act, 1961 (assessment of persons likely to transfer property to avoid tax), are applicable to an individual who collects donations through crowdfunding platforms, mixes these… Read More »

Charitable Trust’s Exemption Restored Despite High-Interest Loans from Specified Persons Due to Financial Hardship. Issue: Whether a charitable trust providing education should be denied exemption under sections 11 and 12 of the Income-tax Act, 1961, if it takes loans from specified persons at interest rates higher than the prevailing market rate, specifically concerning the violation… Read More »

Funds Provided to Sister Concerns: Differentiating Investment from Loan for Interest Disallowance. Issue: Whether an interest-free amount provided to a sister concern, which is subsequently converted into share application money and then share allotment, should be treated as a loan for the purpose of disallowing interest under section 36(1)(iii) of the Income-tax Act, 1961. Whether… Read More »

I. Addition on Share Premium Deleted as Assessee Provided Necessary Documents. Issue: Whether an addition under Section 68 on account of share premium is justified when the assessee has furnished all relevant documents, including a valuation certificate as per Rule 11UA(2)(b), to prove the identity and creditworthiness of investors and the genuineness of the transaction,… Read More »

Form 12BB Income Tax Download Form 12BB , Income-tax Rules, 1962