There are two pvt companies under a same management.
One of them is a loss making co. lets say A Co. and one is in profit say B co.
now i want to absorb the losses of the A co. which of the following ways is the best way to do so from income tax point of view i.e no litigation is invited?

1) Amalgamte The A co with B co.
2) Make A co. a subsidary of B co by aquiring shares of A co.
3) or if we expect profit in A co in some years down the line so let it work as it is but it will be cover by section 115JB (MAT)?
or if you feel any other way to absorb the losses of A co. plz tell me?

Thanks & Regards.

my client is a corporate assessee in the course of assessment under section 143 for the a/y 2006-07 the a.o pointed out that the assessee has not deducted tds on paymment made to contract for trasportation charges,the fact put in front of the a.o was that this service was being provided by the contractor out of agreement and as such he was raising a debit note on the company for the transportation charges, he has also confirmed he was deducting tax and depositing with the authorites on the same amount for which he was raising the debit note,even after lot of pleading the a.o diallowed the amount,the amount of demand was deposited with the tax authorities, simultaneously the a.o has imposed penalty under section 271(1)(C).
I am preparing to file a appeal with cit(a) my question is

can this be sustainable in the office of cit(a) as i have got the confirmation copy of the contractor in which he has mentioned that he has deposited tax on the same amount for which he is raising the debit note,this copy was also submitted to the a.o during assessment proceeding .

i would be greatful to all of you,kindly help me out


ca fareed ahmad khan

Dear All,

I need to know the conditions to be fulfilled by a company so as to be liable for undertaking Transfer Pricing Audit.

If I got the Bill for exps Amounted rs 22,000 which contains exps of F.Y. 2008-09 15000 and 5000 exps. for F.Y.2009-10....Should I make tds on paying this consolidated Bill...this bill dated of current financial year...

if amount paid to any party during a financial year exceeds rs 10 lacs will surcharge be imposable while deducting tax at source

Hello friends
I am totally confused over law of stay of demand.Please help me in my following queries:-

1)If an assessee has taken stay of demand and files his appeal sai in CIT(A) and further loses the appeal then at what time period he has to pay demand.within 30 days of fresh demand notice or next day on which appeal is decided and in this case if he doesnt pay then from when he will be deemed as assessee in default?Will he be deemed as assessee in default during period of stay or not?

2)If he has not taken stay of demand and further wins the case will he be treated as assessee in default?

please please help

TDS ON CAR PARKING SPACE, WHICH SECTION. PL LET US KNOW WHICH SECTION WILL BE ATTRACTED.

ONE OF MY DIRECTORS HAD FILED(WOMAN) HAD FILED HER RETURN FOR THE ASSESMENT YEAR 2006-07. Declaring her income as Rs.2,28,000.00 which also included capital gains(indexing) of Rs.83,000.00 . The tax was paid by her in normal rates as applicable to an individual.

During the assesment the income was arrived at Rs.2,91,971.00. Since special rates was imposed on capital gain,she was required to pay only Rs.7,600.00 as additional tax which was duly paid.

In the penalty proceedings however, the ITO HAS IMPOSED PENALTY OF RS.21,522.00 ON AN ADDITION OF RS.63841.00 (100% OF TAXSOUGHT TO BE EVADED ON THE ADDITION).
MY QUERY IS WHEN THE ADDITIONAL TAX ITSELF WAS RS.7,600.00 ON THE COMPLETION OF ASSESMENT SHOULD THE PENALTY ALSO NOT BE IMPOSED ON THIS TAX ONLY?

An assessee has received his Form no 16 for TDS for contract after 1 year can he claim deduction? And if he receives this form after 2 year can he claim the deduction? What is the validity of this form?

one of my client is servicing in china and head office of his employer is in dubai,he is getting salary from dubai by cheque sent to india and he get it deposited into an NRE A/c he is non resident last year, the question is whether his income will be chargeable to tax on the basis that his first receipt in india, please explain me by giving sec. reference, regards CA HIREN SHETH