Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TDS :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: cpt :: empanelment :: VAT RATES
 
 
News Headlines »
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned
 All about income tax return form Sahaj

I-T dept looks at new clause to tax
May, 15th 2009

After its attempt to tax industrialist Nusli Wadia on his land deals ran into trouble, the income tax department is exploring another avenue.

Two years ago, the I-T department demanded Rs 31 crore as tax for the money Wadia made by selling around 110 acres of land at Mindspace along the Goregaon-Malad Link road. Wadia's appeal against this is pending. Now, the I-T department is interpreting the deal in a different way and demanding tax under a different head.

It has served a notice directing Wadia to file returns for the income earned from the Mindspace deal under the Association of Persons (AOP) clause. Since Wadia and four companies in which he has a majority stake had purchased the rights to income received from the said property, the department has contended that this arrangement is tantamount to AOP. When persons come together to earn profit, or enter into any type of syndication or joint venture, it can result in the coming into existence of a separate taxable entity known as an AOP.

Wadia has now filed a writ in the Bombay HC challenging the department's move to assess "imaginary income''. Wadia has said the action of the I-T will "cause him severe prejudice, grave hardship and unnecessary harassment and seriously interfere with the conduct of his activities''.While the I-T always maintained that Wadia was liable to pay the tax being the de facto owner of the land, the textile magnate claimed he was merely the land's administrator, not the owner.

The land under Wadia's control once belonged to a Parsi, E F Dinshaw, who was based in New York. A month before he died in March 1970, he wrote a will bequeathing all income from his property to his sister Bachoobai Woronzow. However, the will said that after Bachoobai's death, the property would go to two New York-based charities. Jehangir Dubash, a lawyer, was appointed to administer the property.

Subsequently, Dubash moved the HC, asking it to appoint Wadia as the administrator of the property. In December 1972, the HC passed an order by which Wadia became the administrator. In 1995, Wadia struck a deal with the Rahejas to develop the land. In 2000, Wadia moved the HC challenging the validity of Dinshaw's will. The HC held it null and void . Wadia and his four companies bought Woronzow's rights to the income to be received from the property for Rs 20 lakh. Woronzow died in August 2003.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Contact Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions