Author: Sunny Shettipalli

45. X estimated his income for FY. 2011-12 and calculated tax at Rs.25,000 for the purpose of advance tax. He has paid for the 1S installment in time i.e… before 15th September 2011. He has failed to pay the balance of two installments i.e. before 15th March 2012. He paid the balance by way of self-assessment tax and filed the return on 15′ December 2012. Calculate the interest in default of two advance tax installments and for late filing of returns.

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Section 234C – Interest for deferment of advance tax […]

44. A government employee draws Rs.20,000/- p.m., receives HRA of Rs.24,000/- And he resides in his own house. He paid total house loan principal of Rs.15.0004- and interest Rs.60,0001- P.F. 10,000/-, LIC 5000/-, Tuition fee 30,000/- He has undergone treatment for renal failure in a private hospital where he was treated by a general physician. He claimed deduction u/s 80 DDB. You as an assessing officer calculate his taxable income. The assessee version is only a transfer of stock to its depot. Give your opinion with reason?

1. Facts of the Case The assessee is a government employee with the following income and expenses: 2. Issues in the Case [Questions] 3. Legal […]

43. The gross total income before deduction under section. 80C of ‘X’ a resident individual, aged 64 years is Rs.3,20,000/=and total income after deduction under sec 80C is Rs.2,85,000. Is it necessary for him to submit his return of income voluntarily?

1. Facts of the Case Mr. X is a resident individual aged 64 years during the relevant financial year. His gross total income (before deductions […]

40. A person has sustained a loss of Rs. 1 lakh in his speculative business. He wants to claim set-off of this loss from his income of Rs.30,000 received under the head income from house property. Will he be allowed to do so under the law? Decide with reasons.

1. Facts of the Case A taxpayer has incurred a loss of ₹1,00,000 from a speculative business during the financial year. Simultaneously, he has earned […]

 39. ‘A’ is Assessee, a partner Ina firm created trust. By a settlement deed he assigned his profits of ten percent [right, title, interest (excluding capital)] to the firm to the trust. He claimed his income transferred to trust as diversion of income. Is he legally justified? Discuss.

1. Facts of the Case The assessee ‘A’ is a partner in a firm. By executing a settlement deed, A assigned 10% of his share […]

37. Mrs. Y’ made certain cash gifts for her husband, which he invested in some interest yielding securities. The interest realized in securities was included in the income of Mrs. ‘Y’ by the income tax department, which was objected to by Mrs. ‘Y’. Discuss and decide whether the action of the assessing officer is correct.

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Section 64(1)(iv) of the Income Tax Act, 1961 “In […]

36. Shyam, a partner of a firm consists of Madhu, a partnership officer’s two sons and a daughter with his share in the main partnership. Shyam is separated from his wife and is paying maintenance to her. What is his tax liability on the income earned from the main partnership and the amount?

1. Facts of the Case 2. Issues in the Case [Questions] 3. Legal Principles Covered A. Section 10(2A) – Exemption of Share of Profit from […]