CA DEV KUMAR KOTHARI B.com,Grad.CMA,ACS,FCA. AND CA UMA KOTHARI BA(H), B.muse ,ACMA, ACS,FCA,IP 42 years and 39 years respectively post qualification experience.Expertise in taxation, corporate , mercantile, propery , and general laws. We prefer consultancy and guidance work through review of documents from preliminary stage, interim and final drafting of documents, guidance for preparation for petitions, returns, assessments, appeals, petitions, and re- presentation.Other professionals or executive of client can perform field work departmentally. We extensively use phones,email, tele-conference etc. to discuss and meet mentally. We rarely require physical meeting for work so we can work for clients any where. Please do not contact for audit and attestation matters.
Showing 1 to 20 of 35 Results
Issue Id: 120907
Dear learned authors, readers, Kindly share your views about manner of computation of 'tax effect' in case of appeals under customs ...
Read Full Issue Customs - Exim - SEZ
Issue Id: 120608
A trader or investor has entered into agreement with builder and promoter for purchase of some units in a complex or building Construction and ...
Read Full Issue Goods and Services Tax - GST
Issue Id: 120606
General whether, GST should be charged on gross price or actual price charged, after deducting discount allowed - discount may be for reasons like ...
Read Full Issue Goods and Services Tax - GST
Issue Id: 117773
During online deposit of TDS mistakenly TAN was wrongly entered by deductor/ depositor say A.Although name of wrong TAN holder (say B) appeared but ...
Read Full Issue Other Topics
Issue Id: 116983
When we log into my account, we get a message about last log in, if there is any.My query is as follows:Whether we can know :a. various dates of ...
Read Full Issue Other Topics
Issue Id: 115999
In section 2.22A of IT Act, and also in various Finance Act / Bill for example recent Finance Bill 2020 also we find meaning / definition of domestic ...
Read Full Issue Income Tax
Issue Id: 2005
For brain storming: Does the A.O. has jurisdiction and power to treat a 'capital asset' as stock-in-trade? In my view -no. Every property is a ...
Read Full Issue Income Tax
Issue Id: 1782
194C- exemption on furnishing of PAN is only to payment made to contractor in course of specified business and not in all cases. It seems that there ...
Read Full Issue Income Tax
Issue Id: 1741
HONORARIUM VIS A VIS PROFESSIONAL FEES -REVISED ISSUE TO SEEK MORE VIEWS Fees is for services renderd on request and authorization by the client. It ...
Read Full Issue Income Tax
Issue Id: 1711
Proviso to S.40a(ia)- 'any subsequent year' vis a vis year in which tax is paid- see the likely controversy: Provided that where in respect of any ...
Read Full Issue Income Tax
Issue Id: 1691
'professional fees', 'technical fees' are different from honorarium. Fees is for services renderd on request and authorization by the client. It is ...
Read Full Issue Income Tax
Issue Id: 1688
Many small business persons have been shocked by disallowance u/s 40 (a)((ia). The tax was not deducted, as in past, the payees ahve no taxable ...
Read Full Issue Income Tax
Issue Id: 1663
Amways- their dealers/ agents or franchisee are reselling goods on Amway and get profit margin as dealer woul dget depending on volumes generated by ...
Read Full Issue Service Tax
Issue Id: 1606
Whether Section 50C, can correspondingly be applied in hands of buyer of property, and an addition can be amde u/s 69, 69A or 69B or 69C. some A.O. ...
Read Full Issue Income Tax
Issue Id: 1584
Service tax notifications are issued at Delhi and they are applicable all over India. The issuign authority is GOI or Board. If a notification is ...
Read Full Issue Service Tax
Issue Id: 1583
One of essential condition for levy of service tax is that there should be a sperivce provided by one person and the service should be received / ...
Read Full Issue Service Tax
Issue Id: 1582
From Income-tax Act 1961 Definitions. 2. In this Act, unless the context otherwise requires,— xxxx [(12A) "books or books of account" includes ...
Read Full Issue Income Tax
Issue Id: 1581
Jewellery, silver utensils used in business of providing them on rent can be considered as 'plant' eligible for depreciaiton. In such business they ...
Read Full Issue Income Tax
Issue Id: 1580
Any organized activity carried in a systematic manner is regarded as a business activity.Income earned from any business operation in different ...
Read Full Issue Income Tax
Issue Id: 1546
Relevant provisions: Indian Constitution, I.T.Act, I.T.Rules in relation to agricultural income. Whether, any provision which has effect of amending ...
Read Full Issue Income Tax
316 Replies on 255 Issues
Issue Id: 120925
Dear Experts, An assessee filed revision u/s 264 during the period available for filing appeal before CIT(A) and without waiving the statutory ...
Read Full Issue Income Tax
Issue Id: 120907
Dear learned authors, readers, Kindly share your views about manner of computation of 'tax effect' in case of appeals under customs ...
Read Full Issue Customs - Exim - SEZ
Issue Id: 120876
Respected Sir My one of the client is Charitable Trust, who has registered u/s. 12A and also approved u/s.80G of the Income tax Act, 1961 and also ...
Read Full Issue Income Tax
Issue Id: 120608
A trader or investor has entered into agreement with builder and promoter for purchase of some units in a complex or building Construction and ...
Read Full Issue Goods and Services Tax - GST
Issue Id: 120606
General whether, GST should be charged on gross price or actual price charged, after deducting discount allowed - discount may be for reasons like ...
Read Full Issue Goods and Services Tax - GST
Issue Id: 117892
One tax payer filed ITR-3 claiming gross receipts under Income from Profession because the employer deducted TDS u/s 194J . However, the letter of ...
Read Full Issue Service Tax
Issue Id: 116535
I would like the experts and professional to kindly clarify, if a company has multiple offices / godown in a state, then what would be the ...
Read Full Issue Other Topics
Issue Id: 116465
Dear All, I want to know that whether tax is levied on recipient of gift from relative in India with effect from Finance Act, 2019.?? I heard ...
Read Full Issue Income Tax
Issue Id: 116087
Sir, What is the meaning of an income tax amendment coming into force with effect from 1 st April 2020 i.e.fy 2020-2021 or ay 2020-2021 ? and an ...
Read Full Issue Income Tax
Issue Id: 116072
Dear Experts, Please refer Circular No.17/2019 dated 8th August 2019 issued by Central Board Direct Taxes, Judicial Section to enhance Monetary ...
Read Full Issue Income Tax
Issue Id: 116026
I am co coapplicant for a housing loan with my mother, but the property is on her name.Can I claim HRA for the property as rented out to me.
Income Tax
Issue Id: 116020
PAN card has been obtained in the name xyz & others. PAN no. is AAEAS0219C.It is an AOP where shares are determined. AOP has rental and ...
Read Full Issue Income Tax
Issue Id: 115999
In section 2.22A of IT Act, and also in various Finance Act / Bill for example recent Finance Bill 2020 also we find meaning / definition of domestic ...
Read Full Issue Income Tax
Issue Id: 115945
This is query regarding Capital Gains on Sale of Reverse Mortgaged Property to settle the loan. The Reverse Mortgage connected with Insurance Company ...
Read Full Issue Income Tax
Issue Id: 115823
HiI am working at XXX. I have resigned and my last day here is 31st Dec 2019. I have submitted PPF and HRA receipts to employer, they have approved ...
Read Full Issue Income Tax
Issue Id: 115740
I've done expenses such as fencing, lighting, and various other expenses amounting to say ₹ 3 lac all in raw cash? is any disallowance or ...
Read Full Issue Income Tax
Issue Id: 111290
Dear Sir please guide me weather the following work is exempted or taxable under service tax act:01. Cutting and removing guatamala for plantating ...
Read Full Issue Service Tax
Issue Id: 106394
The facts of the case are as Follows: Assessee was alloted a plot on 15/06/1999 Initial money paid Rs.1400000 Installments Paid on different ...
Read Full Issue Income Tax
Issue Id: 106366
DEAR EXPERT If we are maintaIn Books of Account as per Income Tax Act section 44AA and our Books profit Show less Than 8 percent can audit ...
Read Full Issue Income Tax
Issue Id: 106361
Hello, Service Tax regime has changed w.e.f. July 2012. Under the new regime, all the services are covered other than those mentioned in the ...
Read Full Issue Service Tax
Showing 1 to 20 of 1166 Results
HUF property ownership requires evidence beyond a PAN entry, demanding inquiry into purchaser capacity, investment source, and appellate procedure.
Misquotation of an HUF PAN in property-purchase records may initiate reassessment, but PAN reference alone does not establish that the property or investment belongs to the HUF. Determination of ownership requires examination of the purchaser's capacity, purchase documentation, patta, encumbrance records, and the accounts of both the HUF and its Karta. The article also raises concerns over additional evidence at the appellate stage, the need for opportunity to the Assessing Officer, and correct identification of the assessee where an HUF assessment is pursued but an individual legal heir is named in appeal proceedings. (AI Summary)
Income Tax
Overriding clauses under the Income-tax Act, 2025 may require fresh interpretation after replacing "notwithstanding" with "irrespective of".
The Income-tax Act, 2025 uses "irrespective of" in place of "notwithstanding" in provisions corresponding to overriding clauses under the Income-tax Act, 1961. "Notwithstanding" is an established device for creating exceptions and giving a provision overriding effect over competing provisions. Although "irrespective of" may communicate a similar sense, its legal operation must be determined from the provision's wording, context, statutory setting, and purpose. The terminology shift may require fresh interpretation of the intended exception or overriding effect. (AI Summary)
Income Tax
Exempt-income expense disallowance requires revenue-efficacy review to reduce disproportionate compliance costs and recurring tax litigation.
Section 14A disallows expenditure related to income excluded from total income and permits prescribed computation where the Assessing Officer is dissatisfied with the assessee's accounts-based claim. Rule 8D provides for direct expenditure and a prescribed investment-based amount, subject to a cap of total expenditure claimed. The commentary identifies ambiguity, extensive litigation, and potentially disproportionate compliance costs where exempt income is incidental or economically offset by lower returns or alternative taxation. It proposes evaluating revenue efficacy and either omitting or narrowly confining the disallowance mechanism. (AI Summary)
Income Tax
Periodic rent revision in commercial leases can reduce landlord disputes by aligning contractual rent with prevailing market conditions.
Landlords may face prolonged rent non-revision, delayed fair-rent fixation, and burdensome procedures for recovering rent deposited before rent-control authorities. For private premises leased to Central Government departments, rent reasonableness assessment may use recognised valuation principles and prevailing market rent, with due consideration of the lease deed and prescribed fair-rent assessment material. The commentary favours commercial leases with periodic, market-linked rent revision and contractual flexibility over rent-control arrangements. (AI Summary)
Other Topics
Taxpayer cooperation in assessments requires timely evidence, show-cause replies, and appellate participation to prevent adverse factual inferences.
Taxpayer cooperation in assessment and appeal proceedings requires prompt replies to show-cause notices, production of supporting evidence, disclosure of material facts, and requests for cross-examination where necessary. The article uses the Jajodia Finance proceedings to illustrate the consequences of failing to respond to a notice on a claimed share-trading loss and failing to participate before the first appellate authority. It recommends placing additional evidence before the appellate authority with reasons for earlier non-production, seeking comments from the assessing officer, challenging adverse factual findings where appropriate, and requesting remand for fresh consideration when relevant material has not been examined. (AI Summary)
Income Tax
CASS limited scrutiny restricts assessment and bars later revisionary expansion beyond the authorised inquiry scope after assessment completion.
CASS-based limited scrutiny confines assessment inquiry to the identified and communicated risk issues. Expansion of that inquiry requires prior approval of the competent supervisory authority before assessment is completed. The article maintains that the original or duly enhanced scope binds the Assessing Officer and cannot be broadened through revisionary jurisdiction after completion of assessment. It further presents appellate enhancement and reassessment beyond the authorised CASS scope as impermissible, and notes that revision also requires independent establishment of an erroneous assessment order and prejudice to revenue. (AI Summary)
Income Tax
Tribunal order search accessibility requires assessee-name retrieval, timely case-status updates, and organised electronic notices for effective legal research.
The case-status search facility permits searches by appeal number, filing date, assessee name and acknowledgement number, and may link to an order where one has been passed. It is considered more comprehensive than the separate order-search facility because it allows assessee-name and partial-name searches. Order searches remain available by appeal number, order date, pronouncement date and member name. Reintroduction of assessee-name searching for orders, together with bench-wise organisation and timely updating of notices, cause lists, case status and orders, is proposed to improve website usability. (AI Summary)
Income Tax
Party names in legal titles should exclude addresses and c/o details, which belong only in the prescribed address field.
Name and address of an appellant or respondent should be kept in separate fields: the cause title must contain only the party's name, while the complete correspondence address belongs in the prescribed address slot. The article says that adding "c/o" details, chartered accountants, advocates, law chambers or consultancy organisations to the party name is incorrect, can create complications if addresses change, and unnecessarily lengthens reported case names. It also states that such representative details, if needed, should be confined to the address field. (AI Summary)
Income Tax
Long-term capital gains claims on penny stocks saw interference declined where documents and banking records supported the assessee.
The note compiles Supreme Court orders on alleged bogus long-term capital gains from penny stock transactions, stating that where claims were supported by documents, banking entries and DP transactions, interference was generally declined despite departmental investigation material and statements. It also records dismissals of special leave petitions on merits or delay, as well as some Revenue withdrawals and tagged matters without available orders. (AI Summary)
Income Tax
Actual cost of depreciable assets: 2025 Act retains the old framework but may widen litigation over depreciation calculations.
The concept of actual cost remains central to depreciation, capital gains and related tax adjustments under the Income-tax Act, 1961 and the Income-tax Act, 2025. The commentary says the 2025 Act broadly continues the 1961 theme, but recasts the rules into a consolidated computation provision with formulae, illustrations and special cases. Section 39 reduces actual cost by specified amounts such as third-party funding, credit-linked taxes, subsidies and cash payments above the prescribed limit, and also covers special acquisition situations, apportionment of subsidies, interest after first use and anti-avoidance assessment of transferred assets. (AI Summary)
Income Tax
Rs. 10,000 threshold in Income-tax Act 2025 spans cash disallowance, TDS, advance tax, and reporting rules.
The Income-tax Act 2025 retains Rs. 10,000 across several provisions relating to cash payment disallowance, capital expenditure, interest deduction, information reporting, appellate fees, tax deduction at source thresholds, and advance tax. The article states that payments above this amount made otherwise than through specified banking or online modes may be disallowed or otherwise treated under the Act. It further suggests that these limits should be increased upward in view of inflation, wages, compliance practicality, and reduced administrative burden. (AI Summary)
Income Tax
Jurisdictional Assessing Officer as proper party in tax appeals, not CPC, even when processing orders originate there.
In appeals and related proceedings arising from orders or intimations generated by the CPC or faceless processing arrangements, the proper party to the litigation is the Jurisdictional Assessing Officer (JAO), along with the assessee as the opposing party. The CPC functions as an automated processing arm of the Income Tax Department and is not the affected or aggrieved party for purposes of appeal before the CIT(A), the ITAT, or in further proceedings. (AI Summary)
Other Topics
Section 143(2) scrutiny notice reply highlights service validity, approval details, and reconciliation of income data records.
Preliminary reply to a notice under section 143(2) for assessment year 2025-26 addresses the time limit for service of notice, the scrutiny selection and prior approval particulars, and a digital signature status described as "validity is UNKNOWN." It states that the return of income was filed on the basis of regular accounts and consistent accounting practice, that Form 26AS, AIS and TIS have been tallied, and that any differences are timing differences. The draft also notes that standard return documents, tax audit report, and TDS/TCS returns cover the main assessment material. (AI Summary)
Income Tax
Block of assets classification drives depreciation timing, and comparative tax provisions may increase litigation over asset grouping.
Depreciation is a central statutory deduction in income computation, and the first step is classification of the asset into the appropriate block of assets. The block determines the applicable depreciation rate and should ordinarily be selected according to commercial usage and the contextual meaning of the definition. The 1961 Act and 2025 Act are compared, with the 2025 Act expressly excluding goodwill of a business or profession from the intangible limb. The discussion also notes significant litigation on block classification and urges a pragmatic approach to timing issues that merely defer tax. (AI Summary)
Income Tax
Cash loan assumption rejected as banking-channel loan records and dropped penalty proceedings supported deletion of notional interest addition.
Revenue appeals were dismissed where the alleged cash-loan transactions were found to be recorded in the books and routed through banking channels, with loan ledgers, interest ledgers, TDS details, and tax audit disclosures supporting the assessee. The notional interest addition was deleted because the loans were not cash loans and the interest was also accounted for and paid through banks. Penalty proceedings under sections 271D and 271E had already been dropped after verification found no cash loan or cash repayment. (AI Summary)
Income Tax
Jurisdictional Assessing Officer enquiry utility needs quicker OTP delivery, shorter validity, and fewer mobile-number limits.
PAN-based enquiry utility for identifying the Jurisdictional Assessing Officer requires PAN and mobile number with OTP verification, and the mobile number need not belong to the PAN holder. The observed process has 15-minute OTP validity, possible resend and attempt limits, and a cap on repeated enquiries from one mobile number. The article also notes inconsistent city naming in displayed JAO details and suggests a clearer page description, quicker OTP transmission, shorter OTP validity, and fewer restrictions on enquiries from a single mobile number. (AI Summary)
Other Topics
Typographical errors in judgments and rectification orders highlight the need for careful drafting and clear identification of litigants.
Typographical and inadvertent errors in judgments and orders can create an unintended opposite result and may need rectification to reflect the settled legal position. The described rectification substituted the erroneous wording in the earlier judgment with language consistent with the intended conclusion, and the later Special Leave Petition was dismissed without interference. The article also stresses that careful drafting, accurate records, and clear identification of litigants can reduce confusion and avoid unnecessary litigation. (AI Summary)
Income Tax
Certified copy of impugned order is essential for valid appeal filing and prompt diligence in limitation matters.
Timely procurement of a certified copy of the impugned order is essential where an appeal requires such copy for valid institution. A litigant is expected to apply for the certified copy promptly, ideally on the day of pronouncement or immediately upon receipt of the order, and to follow up until it is obtained. Where the copy is not yet available, an appeal may be presented with an application seeking exemption from filing the certified copy and time to file it later, but the exemption mechanism must be invoked expressly and within the limitation framework. (AI Summary)
Other Topics
Tax collection at source on compounding fees from illegal mining remains outside the reported TCS framework.
A more systematic and organized approach in courts is urged so that similar matters can be heard together, saving judicial resources and expediting disposal of pending cases. The article illustrates this through multiple Income Tax matters on tax collection at source from compounding fees and fines collected for illegal mining, transportation, or storage of minerals, noting that the High Court view treating such receipts as outside the TCS provision was left undisturbed in the reported orders. (AI Summary)
Other Topics
Government tax litigation diligence prevents avoidable appeals, wrong-order filings, and weak reliance on CBDT circular exceptions.
Government litigation in tax matters requires careful scrutiny of the impugned order, the correct appealable order, the tax effect, applicable litigation policy, and any exception under the governing CBDT circulars before an appeal is filed or pursued. Appeals should not be instituted mechanically or with inadequate verification, particularly where delay applications, multiple orders of the same date, or prior case history require closer examination by departmental officers and counsel. The article uses reported instances to illustrate avoidable departmental appeals arising from filing against the wrong order or failing to identify the relevant exceptional clause under the CBDT litigation circular. (AI Summary)
Other Topics
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07 May 2026 
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