The Central Board of Direct Taxes (CBDT) has issued Notification No. 38/2025 dated 23rd April 2025, introducing important clarifications regarding the allowability of business expenditures under the Income-tax Act, 1961. This notification focuses on amendments made to Section 37, particularly relating to expenses incurred for purposes that are offenses or prohibited by law. Understanding these …
In a significant judgment offering relief to a taxpayer, the Delhi Bench “SMC” of the Income Tax Appellate Tribunal (ITAT) has allowed the appeal of Ms. Meena Neupane, setting aside an addition of over Rs.24 lakhs made under Section 69A of the Income Tax Act. Background: Demonetization Deposits Trigger Scrutiny The case pertained to the …
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In a recent judgment that could set an interesting tone for similar cases, the Income Tax Appellate Tribunal (ITAT), Delhi Bench “SMC”, provided partial relief to an assessee in a matter involving cash deposits made during the demonetization period. Background of the Case The appeal was filed by Shri Abhishek, a resident of Rohtak, against …
Introduction The Income Tax Appellate Tribunal (ITAT) Delhi Bench delivered a landmark ruling in Sunil Kumar Jain vs. ITO (ITA No. 2429/Del/2023) on April 15, 2025, quashing reassessment proceedings for the Assessment Year (AY) 2012-13 due to procedural irregularities. This case highlights the critical importance of adhering to statutory requirements under the Income-tax Act, 1961, …
Background of the Case Smt. Yamini Kapoor, a Non-Resident Indian (NRI) residing at C-4, 6 Aurangzeb Road, Central Delhi-110001, with PAN CPDPK7608J, contested the CIT(A)’s decision affirming an addition of Rs. 8,51,000 as unexplained cash deposits under Section 69A read with Section 115BBE of the Income Tax Act, 1961 (the Act). The respondent was the …
Background of the Case Sanjeeta Chatterjee, a Non-Resident Indian (NRI) residing in Dubai since December 1997, challenged the orders of the Commissioner of Income Tax (Appeals) [CIT(A)], which upheld additions made by the Assessing Officer (AO) under Section 69A of the Income Tax Act, 1961. These additions stemmed from amounts credited to her Non-Resident External …
LLP annual compliance is the process of completing the statutory filings, financial reporting, tax returns and other regulatory requirements applicable to a Limited Liability Partnership (LLP) in India. An LLP may have fewer compliance requirements than a company, but it is not exempt from annual filing obligations. Every registered LLP should maintain proper books and …
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House Rent Allowance (HRA) is a vital component of salary packages for many employees in India, designed to help cover the cost of renting a home. Beyond its financial utility, HRA offers significant tax benefits under the Income Tax Act, 1961. However, recent notices issued by the Income Tax Department to taxpayers claiming HRA exemptions …
For Non-Resident Indians (NRIs), managing financial assets in India is a balancing act that often involves leveraging fixed deposits (FDs) as a secure and lucrative investment option, thanks to their competitive interest rates. However, when these fixed deposits reach maturity, many NRIs seek to transfer the proceedscomprising both the principal and accrued interestto their country …
The Permanent Account Number (PAN) is a critical financial identifier for individuals and entities in India, facilitating tax compliance, banking transactions, and investments. However, the Indian government’s mandate to link PAN with Aadhaar—a 12-digit unique identification number issued to Indian residents—has created significant hurdles for Non-Resident Indians (NRIs). While NRIs are technically exempt from this …
