Tag Archives: Income tax Officer

Interest Income From Mandatory Bank Deposits Is Business Income Eligible For Section 80P Deduction Issue Whether interest income earned by a co-operative society from statutory and compulsory deposits placed with co-operative or scheduled banks in compliance with State co-operative laws is assessable as business income eligible for deduction under Section 80P(2)(a)(i), or as income from… Read More »

Delay of 252 days condoned by ITAT; CIT(A) order dismissing JDA capital gains claim in limine set aside for failure to evaluate delay condonation. Issue Whether the Income Tax Appellate Tribunal (ITAT) should condone a 252-day delay in filing an appeal by a deceased assessee’s legal heir, and whether the CIT(A) was justified in dismissing… Read More »

Bonus shares held as long-term investments yield exempt LTCG, overriding their original stock-in-trade classification per CBDT circular. Issue Whether the gains arising from the sale of bonus shares should be taxed as Business Income under Section 28(i) on the ground that the original underlying shares were held as stock-in-trade, or if they qualify as Long-Term… Read More »

Rebate under Section 87A is computed on the “total income” and cannot be denied on tax payable for Short-Term Capital Gains under Section 111A. Issue Whether the Central Processing Centre (CPC) / Assessing Officer is legally justified in restricting the tax rebate under Section 87A only to the tax computed on normal slab incomes, thereby… Read More »