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Author: Prakhar Kalani

Prakhar Kalani (B.Com, ACA, DISA), Partner at Kalani Gattani & Co. Prakhar Kalani is a Qualified Chartered Accountant . contact him @

Income from surplus generated from ‘Fest’ organised by trade association is eligible for exemption u/s 11.

Assessee was a trade association trust of advertising agencies. It held fest in Goa every year in which it invited eminent speakers from international advertising agencies as well as from Indian media. Surplus generated out of ‘Goa Fest’ was accumulated and set apart. Same was invested as per modes/forms specified in section 11(5), i.e., deposited […]

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Exp. incurred by Dharma Productions on publicity of film after getting censor board certification allowed u/s 37.

Assessee-Dharma Productions (P.) Ltd was engaged in production and distribution of feature films. It claimed expenditure incurred for positive prints of feature film and further expenditure on account of advertisement. Assessing Officer (AO) noticed that those expenditures were incurred by the assessee after issuance of certificate of Censor Board. He disallowed the claim holding that […]

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Liquidated damages to finance co. is ‘interest’ income eligible to section 10(23G) exemption.

The assessee was a public limited company incorporated with the main object of providing long-term finance to enterprises engaged in developing, maintaining and operating infrastructure projects and facilities. It claimed exemption under section 10(23G) with respect to the liquidated damages received from the borrowers on account of default on their part in making payments as […]

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No rectification u/s 154 is permissible once order passed by CIT(A) is accepted by income-tax department.

Assessee, employee of a bank, received subsistence allowance from bank for a period he suspended in view of a order of the Court setting aside suspension of assessee. Income tax officer observed that assessee was entitled to relief under section 89(1) in respect of subsistence allowance received by it. Same was affirmed by the Commissioner […]

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Assessee can’t escape liability u/s 69A by merely stating that unexplained money was received by his agent.

Assessee was deriving income from transportation business. He was given a contract by State Government to lift Bitumen from oil companies and supply it to consignees. In course of assessment, Assessing Officer (AO) found that contracted quantity of Bitumen was not delivered to consignees. He issued a notice to assessee to explain as to why […]

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CBDT to share data with GST dept. to trap tax evaders

The Central Board of Direct Taxes (CBDT) has notified that Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), New Delhi as the specified income-tax authority for furnishing information regarding assessees to the Nodal Officer, Goods and Services Tax Network (‘GSTN’). The specified income-tax authority shall form an opinion that sharing of […]

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Payment made for catering services is liable for deduction of TDS u/s 194C.

Assessee-hospital availed catering services from Monginis Hospitability Services Pvt. Ltd. It deducted tax at source under section 194C while making payments to Monginis Hospitability Services Pvt. Ltd. Assessing Officer (AO) held that services of catering rendered by Monginis Hospitability Services Pvt. Ltd. were in nature of technical services and therefore, deduction of tax at source […]

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Revaluation of shares as per HC’s mandate not to be considered while computing book profit under MAT.

The assessee-company was engaged in the business of development of infrastructure and real estate. During the year, two wholly owned subsidiaries of the assessee-company, i.e., PREPL and PPPL were amalgamated with the assessee-company. The merger scheme was approved by the High Court under sections 391 to 394 of the Companies Act, 1956, read with rules […]

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