Monday, October 24, 2016

Sum paid to brothers for vacating house held as cost of improvement of house


a) The assessee had shown income from long-term capital gain from sale of house property.

b) It claimed deduction of certain amount paid to brothers for vacating the house as expenditure incurred for improvement of asset.

c) The Assessing Officer declined such claim on the ground that the assessees were the sole occupant of their property and brothers were neither living in capacity of a tenant nor were paying any rent.

d) On appeal, the CIT (Appeals) affirmed the findings of the Assessing Officer. The aggrievedassessee filed the instant appeal.

The Tribunal held as under:

1) In the present appeals, situation was required to be appreciated, keeping in mind social circumstances and the relationship of the brothers. What was their settlement while residing together? What was feeling of elder brother towards their younger brother, when they displaced them from a property where they were residing for last more than 24 years?

No decision on GST rates–Key takeaways from Third Meeting of GST council

The GST Council headed by Union Finance Minister, Shri Arun Jaitley, has to recommend various issues related to GST, viz., GST rates, administrative control over assessee, compensation to States, etc., in its third Meeting scheduled on 18-20 October, 2016. However, the third meeting of GST council concluded abruptly on October 19, 2016, a day ahead of its schedule. Key takeaways from such meeting are given hereunder:
1. The Centre has proposed four-tiered rate structure, i.e., 6%, 12%, 18% and 26%.Such proposal also includes tax rate of 4% on gold. Maximum rate of 26% has been proposed on demerit or luxuries goods. However, the GST meeting was concluded without any final decision on GST rates. Decision on GST rates will be decided in next meeting of GST council to be held in November, 2016.
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