Category: Income Tax

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Capsule of Case Laws with reference to point of deduction of Sales tax and Excise liability

 

  1. Kedar Nath Jute Mfg Co. Ltd 82 ITR 363 (SC)
  2. Commissioner of Income-tax v. Royal Boot House [1970] 75 ITR 507 (Cal.)
  3. Pope The King Match Factory v. Commissioner of Income-tax [1963] 50 ITR 495 (Mad.)
  4. Kalinga Tubes 169 ITR 374 (SC)
  5. Standard Mills Co. Ltd [1998] 100 TAXMAN 535 (BOM.) [21-03-1997]
  6. Bombay High Court in Ballarpur Industries Ltd [2017] 84 taxmann.com 295 (Bombay)

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Revision even on the basis of admission by AO regarding lack of proper inquiry due to insufficiency of time is not tenable. Amitabh Bachan case is not applicable to the cases of inadequate inquiry.[Mera Baba Reality (Delhi High Court) 21/08/2017]

1.       Search was made on the assesse.

2.       Assessment u/s 153A after summoning and recording his statement u/s 131 was made and NIL return was accepted.

Continue reading “Revision even on the basis of admission by AO regarding lack of proper inquiry due to insufficiency of time is not tenable. Amitabh Bachan case is not applicable to the cases of inadequate inquiry.[Mera Baba Reality (Delhi High Court) 21/08/2017]”

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Advance Pricing Arrangements evoke tremendous interest amongst MNEs. 171 APA signed till July 2017

The Central Board of Direct Taxes (CBDT) entered into nine Unilateral Advance Pricing Agreements (UAPAs) with Indian taxpayers in the month of July, 2017. Some of the UAPAs signed had rollback provisions also.

The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the Arm’s Length Price of international transactions in advance for a maximum period of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, a total of nine years of tax certainty is provided. Since its inception, the APA scheme has attracted tremendous interest among Multi National Enterprises (MNEs).

The nine APAs signed in the month of July, 2017 pertain to diverse sectors of the economy. CBDT has signed its first APA with a taxpayer engaged in supplying rigs used in Oil & Gas exploration. Other than the Oil & Gas Sector, the APAs pertain to Education, Banking, Pharmaceutical, Manufacturing and Information Technology sectors of the economy. The international transactions covered in these nine APAs include provision of software development services, provision of IT enabled services, provision of engineering design services, distribution, contract manufacturing, etc.

The number of UAPAs signed in the current financial year is 18 and the number of BAPAs signed in the current financial year is one. With this, the total number of APAs signed till date stands at 171 (Unilateral-159 and Bilateral-12). The CBDT expects more APAs to be signed in the near future.

The progress of the APA Scheme strengthens the Government’s commitment to foster a non-adversarial tax regime.

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Actual linking of adhar with PAN can be done but any time before 31-08-2017 as per due date extension Order dated 31-07-2017

  1. The ‘due-date’ for filing income-tax returns for Assessment-Year 2017-2018 is 31-7-2017 for certain categories of taxpayers. It has been reported that some of the taxpayers are facing difficulties in filing their tax-returns due to various reasons including technical difficulties.

2. The Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income-tax Act, 1961 (‘Act’), hereby extends the ‘due-date’, as prescribed under section 139(1) of the Act, for filing returns of income from 31st July, 2017 to 5th August, 2017 in cases of all taxpayers who are liable to file their income-tax return by the said ‘due-date’.

3. Further, for the purpose of filing return, it shall be sufficient as of now to quote Aadhaar or Aadhaar Enrolment Number. The actual linking of PAN with Aadhaar can be done subsequently, but any time before 31st August, 2017. However, these returns shall not be processed u/s 143(1) until the linkage of Aadhar with PAN is completed.

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Search and Survey Post Demonitization: Press Release 01-08-2017

  1. 1.  Post demonetization, the Income Tax Department (ITD) conducted searches in 900 groups of persons during November 2016 to March, 2017 leading to seizure of Rs 900 crores and admission of undisclosed income of Rs 7961 crores.
  3. 2. During the same period, 8239 surveys were conducted leading to detection of undisclosed income of Rs 6745 crores.
  5. 3. Information of various kinds of wrong-doings by about 400 persons was also shared with other law enforcement agencies such as Enforcement Directorate and Central Bureau of Investigation for appropriate action.

4. Further, during the current Financial year (01.04.2017 to 30.06.2017) the ITD has conducted searches in 102 groups, seizing assets worth Rs. 103 crore.

5. The persons searched have admitted undisclosed income of Rs. 2670 crore. During the same period surveys conducted in 202 cases (01.04.2017 to 31.05.2017) led to detection of Rs. 150 crore as undisclosed income.