Direct Tax Laws & International Taxation - October 2021 MTP

Mr. X is a resident of India, who involved in the business of trading of Fast Moving Consumer Goods (FMCG) under the name of M/s. Aadhar Stores. M/s. Aadhar Stores has turnover of Rs. 4,80,00,000 and 10,20,00,000, for F.Y. 2020-21 and F.Y. 2019-20, respectively. Mr. X has taken a building on rent for the purposes of carrying out his business. This building is taken on rent from Mr. U, who is nonresident in India. During the previous year 2020-21, Mr.…

(5 x 2 Marks each = 10 Marks) Mr. Shivam, an Indian citizen, has left India with his family, when he was 16 years old, to US on 31.03.2001. He was interested in cricket since his childhood days and took cricket as his career. He came to India for playing T-20 matches on 15.02.2021. Mr. Shivam has made the following investments: Purchased shares Company Date of Investment Amount Mittal Lyfestyle Ltd. (STT not paid on purchase) 01-06-2018 Rs. 60,00,000 (purchased…

(4 x 2 Marks each = 8 Marks) Mr. Vyomesh, a non-resident individual aged 61 years, has not furnished his return of income for A.Y.2021-22. However, the total income assessed in respect of such year under section 144 is Rs. 13 lakh. Determine the quantum of penalty leviable under section 270A (Ignore the provisions of section 115BAC). (a) Rs. 2,10,600, being tax payable on total income of Rs. 13 lakh (b) Rs. 1,05,300, being 50% of tax payable on Rs.…

The assessment of ABC Associates, a LLP, for A.Y.2018-19 was made u/s 143(3) on 31st August, 2020. The Assessing Officer made two additions to the income of the LLP – (i) Disallowance of Rs. 3.25 lakhs u/s 40(a)(ia) due to non-furnishing of evidence of remittance of TDS and (ii) addition of Rs. 7 lakhs on account of unexplained investment. The LLP contested the addition on account of unexplained investment in appeal to the Commissioner (Appeals). The appeal was decided in…

ABC Ltd. filed its return of income for A.Y.2020-21 on 29th September, 2020 and XYZ Ltd. filed its return of income for A.Y.2020-21 on 30th November, 2020. Both returns have been filed within the due date u/s 139(1). The returns are selected for regular assessment u/s 143(3) for which notice u/s 143(2) has been served on ABC Ltd. and XYZ Ltd. on 25th October, 2021. Which of the following statements are correct? (a) Notice has been issued to ABC Ltd.…

Mr. Sourabh received an assessment order dated 11.11.2020 on 15.11.2020 wherein his total income was assessed at Rs.20 lakh. The returned income of Mr. Sourabh was Rs.5 lakh. However, Mr. Sourabh did not accept the assessment order and filed an appeal against the same before the Commissioner (Appeals). Now, while contesting the appeal, he wishes to submit some evidences that were not submitted by him before the Assessing Officer. As the Tax Consultant of Mr. Sourabh, what will be your…

Mr. Ganesh, a resident Indian aged 42 years, is a salaried employee whose salary computed under the normal provisions of the Income-tax Act, 1961 for A.Y.2021-22 is Rs.14,50,000. In addition, he has interest on savings bank account to the tune of Rs.12,000. He has deposited Rs.1,50,000 in PPF and has paid medical insurance premium of Rs.25,000 by way of account payee cheque for insuring his health and Rs.30,000 by way of crossed cheque for insuring the health of his mother…

Mr. Jaideep, a resident aged 32 years, and his brother Mr. Pradeep, a non-resident aged 36 years, incurred interest expenditure of Rs.1.80 lakh and Rs.1 lakh, respectively, on loan taken for investing in shares of Beta Ltd, an Indian company. Beta Ltd. declared and distributed dividend during the P.Y.2020-21. Dividend payable to Mr. Jaideep and Mr. Pradeep was Rs.8 lakhs and Rs.6 lakhs, respectively, which was duly received by them after deduction of tax at source. What is the gross…