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SERIES
  • 7/2/2025
Transcript
00:00So, we will start with some case studies related to all
00:29the heads here, one after one.
00:34The first case study is all about capital or revenue recita, a big classification level
00:41under doubt, other kind of illustration, okay.
00:47Now parent company as well as subsidiary company, parent company and subsidiary company, parent
00:59company is in German, okay, subsidiary company is in India, okay.
01:07And in the subsidiary company, loss-making company, loss profit is not, in order to save
01:14them.
01:15So, what we have got subsidiary company, parent company is in the subsidiary company.
01:19What we have got subsidiary company, parent company is in the subsidiary company, okay.
01:21Now the subsidiary company is in the writery company.
01:22siemens public communication network limited, whenever given the
01:26Montreal company, they are financially rich, the gratification, not only actually that we
01:28What is the subsidy? What is the subsidy? Capital receipts are revenue receipts.
01:36Revenue receipts are normal PGP taxable item. Capital receipts are some specific conditions to satisfy.
01:44So, this is the Siemens Public Communication Network Limited.
01:50In this case, the CIT is a revenue receipts.
02:00The Siemens Public Communication Network Limited is no.
02:05The Siemens Public Communication Network Limited is against CIT.
02:12In 2016, the Supreme Court has a judgment in 2016.
02:17Parent Company and Substituted Company in the amount.
02:20It is a loss-making company.
02:23It is a substitute for capital requirement only to preserve the capital contributed by German company.
02:35That is why the capital receipts are considered.
02:39In this case, the get-away is the situation.
02:43In this case, the assessing is a loss-making company.
02:50Indian subsidy is a loss-making company.
02:53Receed voluntary subsidies from German parent company.
02:55Parent company.
02:57In this case, the assessing is a revenue receipts.
02:59Assessing Officer, this subsidy is Revenue Resistence, and but ITAT reversed this decision.
03:06ITAT reversed this decision.
03:08Applied Tribunal, it is all done.
03:11Revenue Resistence, Capital Resistence is all done.
03:14And legal discussion in the final court to poll, Supreme Court,
03:17Supreme Court, it is all done in ITAT.
03:21Refers to the previous Supreme Court cases,
03:24Senai Steel and Pony Sugars,
03:26which generally treated subsidies for non-asset acquisition as revenue.
03:32If you have any subsidies,
03:35if you have any subsidies,
03:37if you have any subsidies,
03:39the Revenue Resistence is treated for non-asset acquisition as revenue.
03:42But if you have any subsidies,
03:44you can get any subsidies for the current company.
03:47So the distinction is made between government grants
03:50as well as voluntary payment from parent company.
03:52Government grant company is rare.
03:54If you have any subsidies,
03:58if you have any subsidies for the current company,
04:00it will be capital receipts.
04:02The Supreme Court ruled that the subsidy rules,
04:05judgment is made.
04:07The subsidy received from the parent company,
04:09capital receipts, not revenue,
04:12have a new as they were made to protect the parent company's capital investment, because
04:16the capital receipts are regimented.
04:19Revenue receipts are now PGBP, capital receipts are automatically, you have to go on check
04:25whether the capital gains tax applicable or not and you can make the decision.
04:29So the entire case studies are taken from the CMA Institute material only, but I have
04:34rearranged that as situation, what is the issue and any discussion in this regard and
04:39final judgment is given here.
04:40So for the easy understanding.
04:43So first one is over.
04:46Then next, Honda CL cars India Limited, CIT, Supreme Court, either SC or Supreme Court, okay.
05:00Now, Honda CL cars, Honda CL car, Honda motors.
05:09Now, this is a technical collaboration agreement, TCA, technical collaboration agreement.
05:15means agreement, TCA, technical collaboration means agreement.
05:21So this is what happens to be a joint venture.
05:24So it is a joint venture, which is a joint venture, which is a joint venture.
05:28It is a technical fee that could be used to be called, technical collaboration means, that
05:36Honda Motors fees that fee is payable in installment payable in installment okay now the question
05:45is Honda Motors in the TCA okay technical collaboration agreement with the fees on the revenue expenditure
05:54or capital expenditure okay how can they treat now so in the in the agreement
06:12deal and the joint venture is waste in the fees kudukulana joint venture kattayadu up in the fees
06:18kudukarudu karnamai in the joint venture install pundudukku kudus over business you say
06:23irudukko alathu establish pundudukko alathu expand pundudukko itadavundu selopanduri inga
06:28pichunakka alathu capital expenditure ra nengi treat pundudukko alathu revenue expenditure kadayadu
06:33without fee payment this joint venture will not be sustainable so alathana the amount what
06:39they have paid as a fee for establishment of a new entity any expenses you incur for establishing
06:45will be considered always as capital residual so it is the legal decisions for discussions
06:50partigran as I see treated the technical fees as a revenue but the revenue contended it it was a
06:57capital expenditure so you know the revenue expenditure up in our solicit pundukul debit
07:01pundudur enter ee lelele the capital expenditure capital expenditure pundukul debit pundukul
07:05the joint venture would end up on the termination of pca pca complete i mean stop pca complete i mean stop
07:14pca complete i mean stop pundukna automatically joint venture stop pundukul stop pundukul itadavundu capital expenditure
07:18pundukul debit pundukul disqualify pundukul and assessi illa sara revenue expenditure pundukul debit pundukul
07:23pundukul debit pundukul aprituali irukkudu what is the final judgment aprituali irukkudu the court held that the technical fees is a capital expenditure
07:27the court held that the technical fees is a capital expenditure edu kaga the joint mentioned itself would terminate if the agreement ended means it is a setting up expenses of a new business
07:36so it is a capital expenditure that's why it is not going to be debited in the pundukul is that clear
07:45the amount paid is called the subscription fee the amount paid is named as subscription the subscription is simply
07:59So, that will invest in the returns.
08:02If you collect the investment in P&L, you will consider the income.
08:08The amount paid is named as subscription.
08:11The subscription is simply credit in the P&L.
08:17Later on, sometimes it is refundable.
08:22It is income.
08:24If you get the investment, you will return the investment.
08:29If you are returning the subscription with interest,
08:3310 crores plus 1 crore,
08:3611 crores are return.
08:39Now, what is the question?
08:42Is it considered as income to be credit in the P&L account?
08:45See it.
08:47If you are considering income,
08:49you have taxed income.
08:52So, this is the court.
08:54Sir, if you get the income, you will return the investment.
08:57So, this is the court.
08:59What is the court?
09:00The court says,
09:01The amount paid is $3 billion.
09:03Sir, it is $3 billion.
09:05The amount paid is $3 billion.
09:07The amount paid is $3 billion.
09:09No, it is refundable.
09:11It is refundable.
09:12It is refundable.
09:13Forfeiture.
09:14The amount paid is $3 billion.
09:16If you are refundable,
09:17it is refundable.
09:19If you are refundable,
09:20it is not the interest.
09:22It is not considered as your income.
09:24The amount paid is the capital.
09:26It is not considered as capital receipt.
09:28Though, if you are considering income,
09:31as per the logic,
09:32it is not considered as a revenue receipt.
09:34If you are considering debit or credit,
09:36that is the taxation purpose.
09:38Whatever the debit and credit you do,
09:42while preparing the P&L account,
09:43that is the net profit contribution.
09:45And the net profit,
09:46that is the investment particularly
09:47for the taxation purpose.
09:48That is the revenue receipt
09:51that is the revenue receipt
09:52that is the revenue receipt
09:53that is the judgment.
09:54So, the situation,
09:55that is the received subscription
09:57under the collective investment scheme.
09:59That is the income in books
10:01considered but later
10:03it is going to be repaid with the interest.
10:05So, forfeiture
10:06to do that.
10:07Whether the subscription amount
10:08received under the collective investment scheme
10:10should be treated as income
10:11or capital receipt.
10:12Revenue or capital law
10:14in the books
10:16legal discussion.
10:17Even if shown in the income
10:19as income in the books,
10:20in the books,
10:21subscription receipts
10:22from investment scheme
10:24that are not forfeited.
10:25Forfeited
10:26that is the capital receipts
10:27that are not forfeited.
10:28That is the legal discussion.
10:29Judgment
10:30if you are talking about this
10:31as income in the books,
10:32that is the capital receipts.
10:33Held the subscription from the public
10:35which were not forfeited
10:36where capital receipts
10:37were not income
10:38despite being shown as income
10:40in the books.
10:41You have to show this as
10:43your capital receipts
10:45only.
10:46So, not taxable.
10:47Now,
10:49Aditya Balakrishna Seraph
10:56versus ITO
10:58income tax officer.
10:59Okay.
11:00Now,
11:01you will get another case
11:04what is the personal loan?
11:06What is the personal loan?
11:08What is the foreign loan?
11:09X
11:10probably Aditya
11:11in India
11:13gets the loan from US
11:16what is the foreign loan?
11:18Forex
11:20that is the foreign loan?
11:21Forex
11:22that is the foreign loan?
11:23Forex
11:24is the foreign loan?
11:25Forex
11:26is the foreign loan?
11:27Forex
11:28is the foreign exchange
11:31fluctuation.
11:32Now,
11:33the question is
11:34what about the treatment
11:35Now, the question is, what about the treatment for this?
11:38In the loan, you have to pay personal loan.
11:41Personal loan.
11:44Okay? Personal loan.
11:46So, personal loan.
11:47If you pay 10 lakhs, you pay 10 lakhs.
11:51For inflation, you have to pay 8 lakhs.
11:53Then, you have to pay 2 lakhs, you have to pay 4 lakhs.
11:57Now, will it be considered as income from other sources?
12:00In the hands of Aditya, Balakrishna, Sharaaf, and Tax Ablobein, Kelvik, Yekambudu.
12:05Loan itself is not a revenue receipt.
12:07It's a capital receipt.
12:08It's a capital receipt.
12:10You have to pay interest.
12:12You have to pay interest.
12:13You have to pay a little bit.
12:15So, personal loan that is not going to be considered for the business.
12:19That is not going to be considered for the business.
12:22Repayment is not going to pay interest due to foreign fluctuation gain.
12:26Everything is related to only loan, which is the capital receipt angle.
12:32That is not going to be considered for the loan.
12:34So, this fluctuation gain you get, no.
12:382 lakhs is not taxable.
12:42So, whether the gain due to Forex fluctuation on capital transaction is taxable as income.
12:47This is the issue.
12:48Legal discussion, ITAC.
12:50Income tax, appellate, tribunal.
12:52The case is also the case.
12:53You have to pay interest.
12:53You have to pay interest.
12:54Shaw, Wallace & Company Limited is a reference.
12:57And, hell that capital receipt is outside the scope of income.
13:01So, Shaw, Wallace & Poor Limited is outside the scope of income.
13:05Income, you have to consider it, unless it is specifically taxable under the heads of capital gains.
13:11Since the foreign exchange fluctuation was related to the capital filed transaction, so capital
13:23sumbath, but it was not subject to income tax.
13:24It is subject to income tax.
13:25It is subject to income tax.
13:26It is subject to income tax.
13:27It is subject to income tax.
13:28Shaw, Wallace & Company Limited is a judgment.
13:29It is not going to be considered as revenue receipt, so not taxable.
13:31So, judgment Mumbai ITAC.
13:32Okay.
13:33Ruled.
13:34This is Mumbai ITAC.
13:35Income tax appellate tribunal.
13:36So, this is Mumbai Tribunal.
13:37Otherwise, Mumbai High Court means ITAC.
13:38Rule that the gain due to Forex fluctuation was capital receipt and not taxable.
13:40Okay.
13:41In 2021, there was a judgment.
13:42Mumbai Tribunal.
13:43There was a judgment.
13:44Now, let's see.
13:45Doctrine of mutuality.
13:46Here is a judgment that we are going to look at the tax.
13:47We cannot wait to see there, but we cannot wait in theimonties, so the order of mutual abundance
13:48is maximum tax.
13:49It is not taxable.
13:50Rule that the gain due to Forex fluctuation was capital receipt and not taxable.
13:51Okay.
13:52In 2021, there was a judgment.
13:53The Mumbai Tribunal.
13:54Now, let's see.
13:55Doctrine of mutuality.
13:56We can see that we have 3, 4, 4, capital receipts are revenue receipts.
13:57Now, let's see.
13:59Now, let's see.
14:02Doctrine of mutuality.
14:03We can see the three the truth is capital receipts.
14:073, 4, capital assets are revenue assets are going to look at the 5th case, doctrine of
14:17mutuality is that okay, doctrine of mutuality is that you cannot make any profit by doing
14:25the trade oneself, profit is going to look at the doctrine of mutuality, okay, my mother
14:32mother and son, mother and son, mother and son are going to give you $100, we are going to
14:41pay for the tax, no, because this is a family, this is not considered as taxable, what is
14:49mutuality, mother has no intention to make a profit by preparing the dosa for son and son
14:56is also not going to spend money for that, this is the case, that is why mother is trust
15:01trust becomes a business, formerly trusted as a social компьютer Foundation, publisher
15:07known as a local founder, it was in charge of the trust, trust, or association, especially
15:14association club, come to us from up to this one, our Stats Association lensatiens have
15:22In this video, you can form a flats association with a president or chairman who is ready to do it.
15:27They can simply collect membership fees from all the residential persons.
15:31That means, common area maintenance, lighting, decorate purpose, play area.
15:39If you have a surplus, you can get a surplus from the members.
15:44Next time, we don't have the intention to make the money out of it.
15:50This is mutuality.
15:52These things are mutuality.
15:54Is that clear?
15:56Okay.
15:57So, in the case, M Restaurants Marketing Private Limited.
16:03Okay.
16:05So, M Restaurants.
16:08And the product market, M Restaurants Marketing Company.
16:14Is that okay?
16:165% of the gross sales.
16:17So, in this case, M Restaurants, M Restaurants Marketing Company Company.
16:23whatever the may be why M Restaurants sales are 5% fees on sales will be as a fee M Restaurant M Restaurant Marketing fees is that ok 5% of the gross sales so M Restaurant
16:43you get the net profit say net profit over 20 lakhs on the issue now assessing officer should have tax cut up the interest you are order and I am not subject to tax
17:02you are order and I am not subject to tax I am not subject to tax
17:14so principle of mutuality there should not be any profit profit again M Restaurant
17:24it is tax cut up M Restaurant's situation is m restaurant market private limited a subsidiary of M Restaurant India Private Limited was set up in 2
17:30and in total of 3 US $1,000 the area between the market and the market and the market and the market and the market
17:38has a sale of the market and the aussies on the market and the market and one aspect of the market and the sales would be totally not they will be taxed
17:44it is taxed ok is that ok M Restaurant situation is that M REST marketing private limited a subsidiary of M REST India private limited
17:53was set up for a cost advertisement and promotional activities for its franchisee operating as a
18:00non-profit entity based on the mutuality principles okay you know non-profit entity
18:04the company collected 5% gross sales from the franchises for these services you know the
18:09franchisee area 5% collected the issue whether the income generated by the company qualifies
18:15for the exemption to the doctrine of mutuality or if it is taxable as a commercial income in the
18:21marketing company one of the Doctrine of Mutuality Exemption will tax pay so legal
18:28discussion or pen up is shown on that the Doctrine of Mutuality Exemption certain entities from tax some
18:34entities have been given as club or club associations but the apex code clarified that its activities are
18:40commercial and then the participation participants cannot access surplus or climb back contribution
18:46mutuality does not apply that means if you like the surplus it isn't right you know the price
18:53rights illa, which is automatically the operation of the business that is treated.
18:58If the flats association is suppressed, the subscription fees are low, but the service
19:04is not considered as a mutuality. So, the judgment is being shared back. The Supreme Court
19:21held that since the activities were commercial in nature and the participants did not have the
19:25access to the surplus in the m-restaurant salami m-restaurant marketing the doctrine of mutuality
19:38did not apply therefore the income earned by the company was taxable the taxable is that clear so
19:45doctrine of mutuality case now section 14a so introduction section in the diselevencer section
19:54or house property or PGVP in the case class i always request you to finish off inter taxation
20:05in detail except salary chapter in the final students especially international taxation and
20:15the 40 marks carry on the default 25 plus one year long balance it is a law concept minimum 25 to 30
20:22marks on the inter laborator so for 50 marks in the name of 15 marks scope but the inter strong
20:29panic international taxation strong panic me you can score around 50 to 60 marks with all additional
20:34data is the law additional information so you need to be mastered with the interest taxation also
20:40now diselevencers under section 14a principal commissioner of income tax versus uk paints
20:47private limited in the case law so you might have heard about that right partial agree partial non-agree
21:02you will treat them and then you will treat your income as well you will classify them
21:08then you will treat your income as well you will classify them in the case of non-agree
21:11agree income taxable taxable taxable taxable taxable is that okay that is you know
21:16Okay, that's you know.
21:17If you want to do that, the expenses are agreed, non-agree,
21:221-100.
21:24If you want to do that, it's 20 crores agree, sir.
21:30Non-agree is 80 crores.
21:32If you want to do that,
21:36if you want to do that,
21:38if you want to do that,
21:40you want to do that.
21:41If you want to do that,
21:43if you want to do that,
21:45if you want to do that,
21:47if you want to do that,
21:49that's how you have to classify.
21:51If you want to do that,
21:53you have to pay the tax for that additional 20 crores.
21:57So, let's see the situation.
21:59The assessi reported over 25 crores of tax-exempt income
22:04and offered a voluntary diselevances of 7.5 lakhs under the section 14A.
22:09That's agree, non-agree.
22:11Non-agree are initiated.
22:13If you want to do that,
22:15if you want to do that,
22:17tax-exempt income is 25 crores.
22:19If you want to do that,
22:21if you want to do that,
22:23if you want to do that,
22:25if you want to do that,
22:27Sir, 7.5 is here,
22:29balance is 42.5.
22:31That's why I will do that.
22:33If you want to do that,
22:35if you want to do that,
22:37if you want to do that,
22:39if you want to do that,
22:41the assessing officer rejected these diselevances
22:43and applied the higher diselevances.
22:45Assessing officer,
22:47if you want to do that,
22:49if you want to do that,
22:51only 15 lakhs is disallowed,
22:53not entire value.
22:55As per section 14A,
22:57using rule number 80.
22:59Then, what is the main issue?
23:01Assessing officer can reject the voluntary diselevances
23:03without providing any reasons.
23:05The issue is,
23:07if you agree with the 15 lakhs,
23:09you agree with the 7.5 lakhs,
23:11you agree with the 15 lakhs.
23:13That's why,
23:15if you want to do that,
23:17only 7.5 lakhs is disallowed.
23:19In the 7.5 lakhs,
23:20you argue with the 15 lakhs.
23:22If you want to do that,
23:24you will confirm that.
23:26You will confirm that.
23:28You will have legal decision
23:30without providing any reasons.
23:32Disallowed.
23:33In the legal decision,
23:34section 14A,
23:35class 1,
23:36Disallowed of expenses
23:37related to the exempt income.
23:39That's correct.
23:40But,
23:41AO determines the disallowed
23:43based on the satisfaction
23:45considering the assesses
23:46voluntary disallowed.
23:48If they are satisfied
23:50if they are not
23:51correct,
23:52prove it.
23:53His side validates
23:54the statement
23:56or reference
23:57without providing any reasons,
23:59disallowed.
24:00judgment.
24:01The High Court ruled that
24:03AO must record reasons
24:04for rejecting the voluntary
24:05disallowances
24:06and should examine.
24:07Record the reasons
24:09for rejecting.
24:10Okay.
24:11And,
24:12examine whether the larger
24:13disallowance claim to be
24:14assesses has a nexus
24:15with the exempt income.
24:17Okay.
24:18Exempt income.
24:19The court emphasized that
24:29the AO must not
24:30arbitrarily reject the
24:32voluntary disallowances,
24:33but must base the decision
24:34on the objective material.
24:35So,
24:36voluntary
24:37there should be objective
24:38material.
24:39There should be
24:40objective material.
24:41The reason
24:42is that
24:43the disallowance
24:44intersection
24:4514A is over.
24:46Which is related
24:47that means the case law
24:48is in between.
24:49Principle CIT
24:50Commissioners
24:51of Income Tax
24:52as well as
24:53UK Pains,
24:54India Private Limited.
24:55Now,
24:56so with that,
24:57Doctrine of Mutuality over
24:58and disallowances over.
24:59Let's now move on to the
25:00income from house property.
25:01Income from house property.
25:02Income from house property.
25:03Income from house property.
25:04Shusham Singla
25:05versus CIT.
25:06That is the case law.
25:07Punjab and Hariya
25:08are the court
25:10court.
25:11Supreme court
25:12court
25:26court
25:28court
25:29court
25:30court
25:31court
25:32court
25:33Right.
25:34Clear.
25:35Appellant
25:36assasye
25:37Appellant
25:38Appellant
25:39First
25:40other party is called Defendant, Appellant Authority, Assessee owned multiple properties
25:49they have multiple house properties
25:54multiple house properties
25:59all of these properties are vacant
26:06one of these properties is vacant
26:10one of these properties is vacant
26:13one of these properties is vacant
26:16even though you are being the real estate builder
26:19no taxable
26:25but rent versus the property is not the real income
26:29because it is notional based taxation
26:33it is real income or notional income
26:37especially income from house property notional income based on the tax is not the real income
26:42so if you are not the income that you are arguing about it
26:46no it is not real income based it is not notional income
26:49okay
26:50the assessing officer added notional rent to the Appellant's income
26:53so if you are treated it as taxable under section 23 class 1 sub class C
26:58notional rent
27:00okay
27:01if in the 23 LMA
27:03section 23 is all about calculation of annual values
27:06in the annual values
27:0823 class 1 sub class A
27:13if not let out on the expected rent will be the rent
27:20okay
27:21reasonable expected rent if the property is not let
27:23what I have to do with the property is not let
27:24what I have to do with the property is not let
27:25expected rent will be taken
27:27okay
27:28now
27:29actual rent if the property is let out and rent exists expected rent
27:34now
27:36now
27:37you can see the variable
27:38now
27:41in order to get the rent
27:42okay
27:43when
27:44if the actual rent is more than expect rent
27:46or rent whichever is higher than on the property
27:48then
27:50actual rent will be taken
27:52If it is higher then expect rent will be taken. Rent received for vacant properties if applicable.
27:58Okay. So vacant properties, rent received, vacant properties, what is the rent?
28:08Three months of vacant. Now what is the rent? Vacancy elements. The associate argued that since the properties were vacant,
28:22section 23 class 1, subclass C should apply. That is why it should apply. Okay. Vacant
28:30earned the rent received, what is the rent received? He argues in this section. Okay.
28:36That is why the rent is 0. Okay. But no one is real rent. Vacant, you have to prove. Okay.
28:49The court ruled that properties that remain vacant throughout the year must be assessed under section 23 class 1, subclass A.
28:56You have to prove. In this section, I have to prove in this section. Vacancy brings the tenant.
29:01If you have a tenant, you have to prove it. If you have a tenant, you have to prove it.
29:04If you have a tenant, you have to prove it. Vacancy elements are available. Vacancy elements are available.
29:07If you have a tenant, you have to prove it. Let us check.
29:08The rent receipt minus vacancy rent is available. That is why we compare.
29:10If you have a tenant, you have to prove it, which is lower, will be taken. It is the process.
29:14If you have a tenant, you have to prove it. Income from house property, Inter, you have to confirm it.
29:15Income from house property, Inter in terms of the house property, you have to see it.
29:20In case of vacancy elements. So, unrealized rent, vacancy rent, rent, rent, and rent.
29:23So that's why the vacancy rent will be taken by 1-2 months.
29:29You can't take zero.
29:35Automatically what happens?
29:36Expected rent will be taken.
29:38Notional rent would be determined rather than the actual or deep rent income.
29:42Notional rent would be determined.
29:44Special Leave Petition dismissed by the Supreme Court.
29:47Special Leave Petition.
29:54That Supreme Court dismissed by the Notional Income Basement.
29:58So another section 23 class 1 subclass sorry 23 class 1 subclass C is not applicable.
30:05Only A is applicable.
30:07That is expect rent is taxable.
30:09Is that clear?
30:12Market department of Municipal Corporation of Greater Mumbai.
30:17Greater Mumbai, Greater Mumbai.
30:20Municipal Corporation of Greater Mumbai.
30:22That is the
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31:09the tenant by RD, Raj Dhadarkar, will be falling under income from house property or not,
31:17income from house property or not, and PGP income. So, if you want land owner, the property
31:26you want owner to go to the building, huge expenses, that's enough. Building owner is
31:32qualified, and deemed owner. Okay, deemed owner cases, RD is taxed, that's income from house
31:39property. PGP income is one of those objectives, PGP, letting out of the property's main objective,
31:47PGP income is considered. Okay, sub-licensed it as a market after making substantial modifications.
32:00Is the income from sub-licensing the property taxable as income, house property income or business income
32:05from office. Legal discussion. The SSC claimed the income as business income. Business income
32:11on the basis of this modification, and the Municipal Corporation of Greater Mumbai
32:17is the price of the property taxable as a market. So, if you have a property taxable, then you
32:23have to pay the fees. You have to pay the debit. You have to pay the debit. You have to pay the
32:26contract. But, A.O treated the income as house property income, supported by the Tribunal
32:30and High Code. No sir, this is correct. It is correct. This is a printer. If you have a support of
32:35The Supreme Court ruled the income from leasing is House Property Income under Section 22 only, House Property Income.
33:04Service Charges were inseparable from rent.
33:13The Assessive was a deemed owner.
33:16He becomes a deemed owner.
33:19That is not the MCGP.
33:22Municipal Corporation of Greater Mumbai may be the registered owner but he is a beneficial owner.
33:29The tax will be leviable only in the hands of the beneficial owner not the registered owner.
33:35And then Service Charges did not qualify any business income.
33:38Service Charges did not qualify any business income.
33:40So, only PGP income.
33:42Sorry, only income from House Property.
33:44Is that clear?
33:45Now, Maneklal Agarwal Vs. D.C., Deputy Commissioner of Income Tax.
33:59This is the Supreme Court of Income Tax.
34:04Okay.
34:05Assessive leased property to family members at nominal rent.
34:08Assessive, family members let out.
34:12Residential house property.
34:14You are the one you have to buy a rent.
34:15So, what this price is?
34:17The price of total rent cost is $500.
34:21You will be able to buy a rent.
34:22It's a permanent rent.
34:23For people who pay a rent.
34:24You are the third price.
34:26Investing the homebu.
34:28You will be able to buy .
34:29It's a permanent rent.
34:30The rent a rent.
34:31Is on the return of property.
34:33Okay.
34:34What should be done by the taxable income from house property?
34:39Family member is the one that is income from house property, other sources.
34:43But, if you have taxable income, you can claim that you have a taxable income.
34:50That is the scenario discussed here.
34:54Okay.
34:55So, the assessor leased a property to family members at a nominal rent, who subs leased
35:01a property at higher rentals to third party.
35:03The tax authorities deemed the lease arrangements as a sham and short to tax the subleased income
35:09in the assessor's hand.
35:10That is why the first income is taxable.
35:15The issue here.
35:19Whether higher subletting income can be taxed in the hands of the original owner or lesser
35:24when the lease is found to be sham.
35:26Of course, legal decision on the other discussion, error based upon you,
35:31the Supreme Court upheld the findings that the lease agreement was bogus, sham, and intended
35:36to reduce the assessor's taxable income.
35:39It is not the right person.
35:40You know, you can see the right person, it is not the right person.
35:41What is the right person?
35:42You can see the right person which is taxable.
35:43You can see the right person above the risk.
35:44You can see the right person if you have a taxable.
35:46It is nothing but a bogus one.
35:48So cited ITO versus Chi Achaya,
35:53that's the case in the case.
35:56Establishing the principles of taxing the right person.
36:00Who is the right person? Family member?
36:02No. Other people are not the right person.
36:05If you are not the right person,
36:07you are not the right person.
36:09If you are not the right person,
36:11you are not the right person.
36:13You are not the right person.
36:15Judgment.
36:16Subleting of income taxable in the hands of assesses' hands
36:19due to the sham nature of the initialism.
36:22Relatives could seek the relief.
36:24If you are not the relative income from other sources,
36:27averted tax is not the right person.
36:29One income is the right person.
36:31If you are not the right person,
36:33you are not the right person.
36:35If you are not the right person,
36:37you are not the right person.
36:39You are not the right person.
36:41you know the right person,
36:43If you have the right person
36:45A witness to your Right person.
36:47Scheduler of value,
36:48you have the right person.
36:50You should get relief
36:52in separate separate proceedings.
36:53That's the right person in the
36:55quarter4ение.
36:5710,000 is not bị taxable income.
36:59In the income Barr Momoa,
37:01your family member tax cut is not such a bad person.
37:03tax cotton should be you can get relief by applying a double taxation proceeding
37:08I will prevent from double taxation probably proceedings are based on any
37:11SK power law