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Whether Penalty can be levied on Assessee for failing to disclose rental income for deemed let out property?

In common parlance, property is understood in wide sense. It is not only the thing which is the subject matter of ownership but is taken to mean ‘dominon’ or right of ownership or even partial ownership. Lord Longdale in John v. Skinner (1836) 5Lg 67-90 (Ch) has described it as the most comprehensive of all the terms which can be used in as much as it is indicative and descriptive of every possible interest which a person can have. However, for purposes of taxation under sections 22 to 27 of the Income Tax Act, 1961 such wider definition of property is not relevant. The income to be taxable should be “Income from House Property”.

Conditions necessary to tax income from House Property are:
• The property should consist of any building or land appurtenant thereto
• The assessee should be the owner of the property
• The property should not be used by the owner for the purpose of any business or profession carried on by him, the profits of which are chargeable to tax.

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TRANSFER PRICING JUDGEMENTS

When two or more associated enterprises companies enter into a joint contract during an international transaction in order to allocate a particular cost incurred in relation with a profit, service or facility presented by any one or all of the companies, such a cost shall be calculated taking into account the arm’s length price of the particular assistance, service, or facility, as applicable.

Recently Bombay High Court dismissed a plea by British telecom giant Vodafone's Indian arm against the income-tax department and clarified that transfer pricing authorities have the jurisdiction to investigate suo moto any cross-border transactions. The court said that the company has the option to go for an alternative remedy.

Recently there have been many judgements at various appellate levels in the vastly dynamic field of Transfer Pricing. I would be covering some of the recent Transfer Pricing Judgements which could impact our understanding of the regulations in India.

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