Shri Sunil Moti Lala, Advocate has prepared a compilation of 105 Important judgments on transfer pricing (33 cases), International Tax (6 cases) and Domestic Tax (66 cases) reported in October 2016. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. A PDF copy of the digest is available for download. He has also given the appeal numbers in all cases so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of all the important judgements dealing with transfer pricing, international taxes and domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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Advocate Rahul Sarda has made a critical analysis of the provisions of the the Taxation Laws (Second Amendment) Bill, 2016 which proposes to tax unaccounted deposits of cash in the wake of the demonetization scheme. He has identified certain shortcomings in the legislative proposals and given pointers on how they can be rectified

I. Introduction

Amidst the Opposition-lead protests over demonitisation of high denomination currency notes (HDNs) ensuring little or no business being transacted by Parliament in its current winter session till now, on 28th November, 2016, the Hon’ble Minister of Finance and Corporate Affairs moved the Taxation Laws (Second Amendment) Bill, 2016 in the Lok Sabha proposing certain amendments to the Income-tax Act, 1961 (the “IT Act”) and to the Finance Act, 2016 (the “Finance Act”).

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CA Gautam Baid has prepared a bird’s eye-view review of the Taxation Laws (Second Amendment) Bill, 2016 in which he has identified all the core points that all tax professionals and tax payers have to be aware about

Analysis of The Taxation Laws (Second Amendment) Bill, 2016

Amendment to Income Tax Act, 1961

– Tax payable u/s 115BBE increased from 30% to 60% (Income assessable u/s 68, 69, 69A, 69B, 69C or 69D)

– Surcharge on income taxable u/s 115BBE @ 25% of tax payable
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CA Jaiprakash Bairagra and CA Paras Dawar have written separate articles in which they have considered the question whether penalty under section 270A of the Income-tax Act, 1961 can be levied in a case where a person has deposited his unaccounted cash in his bank account and paid due tax thereon in the return of income for AY 2017-16. Both learned experts have given cogent reasoning in support of their respective conclusions

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Dr. Raj K. Agarwal & Dr. Rakesh Gupta have dealt with the controversial question whether the deposit of unaccounted high denomination notes in the bank can attract penalty under section 270A of the Income-tax Act, 1961 even though the said deposit is offered to tax in the return of income. The experts have explained the entire controversy in the proper perspective

Recently introduced Demonetization whereby currency notes of Rs. 500 and Rs. 1000/- have been declared as invalid legal tender with effect from 9.11.2016 is most likely to witness huge cash deposits in bank accounts within the window period expiring on 30.12.2016. Media reports have appeared attributed to Government sources that in case substantial amount of cash is deposited in banks declaring it as current year’s unaccounted income and applicable tax @30% plus surcharge etc. is paid, still penalty @200% of the tax can be imposed as per provisions of section 270A of the Income Tax Act, 1961.

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Advocate Rahul Hakani has conducted a meticulous analysis of the new law inserted by way of section 270A of the Income-tax Act, 1961 to levy penalty for under-reporting and misreporting of income. Apart from explaining the law in the clearest possible terms, the author has provide several practical examples to illustrate the precise working of the provision

PENALTY FOR UNDER REPORTING AND MISREPORTING OF INCOME – SECTION 270A – NEW PENALTY PROVISIONS INTRODUCED BY FINANCE ACT, 2016

1. Introduction

The provisions of Section 271(1) providing for penalty on concealment of Income and/or furnishing inaccurate particulars of Income has been in the statute book for more than 56 years. Major legal issues arising in penalty proceedings have to a greater extent been settled and practically it was this settled law which had to be applied to the facts of each case. Yet due to almost automatic initiation and consequent levy of penalty by Assessing Officers for additions or disallowances made under scrutiny assessment had given rise to proliferation of litigation. In CIT v. Reliance Petro Products 322 ITR 158, the Supreme Court stated: “If we accept the contention of the revenue then in case of every return where the claim made is not accepted by the Assessing Officer for any reason, the assessee will invite penalty under Section 271(1)(c). That is clearly not the intendment of the legislature”.

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Shri Sunil Moti Lala, Advocate has prepared a compilation of 115 Important judgments on transfer pricing (37 cases), International Tax (8 cases) and Domestic Tax (70 cases) reported in September, 2016. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. A PDF copy of the digest is available for download. He has also given the appeal numbers in all cases so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of 115 judgements of which 45 deal with transfer pricing and international taxes cases. There are 70 cases on various issues of domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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Hon’ble Justice Mr. V. Gopala Gowda of the Supreme Court has articulated the connection between taxation and the economy and how the former can be used as a tool to revolutionize the latter. The learned judge has underlined the critical role that tax professionals play in the entire process of tax levy and collection and has given important pointers on what the professionals are required to do to facilitate the process

Taxation is the process by which the Government collects money from people to use for public purposes.

Taxes are generally an involuntary fee levied on individuals or corporations that is enforced by a Government entity, whether local, regional or national in order to finance Government activities.

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Justice Mr. R.K. Agrawal of the Supreme Court grapples with the several problems plaguing the Indian judicial system especially in the field of taxation. He has offered practical suggestions on how some of these problems such as those relating to pendency can be resolved. He has also highlighted the role that tax professionals should play to ensure that the reforms are speedily ushered in. The learned Judge emphasizes that legal professionals owe responsibility to the taxpayers’ community and are duty-bound to extend a helping hand for reduction of litigation and checking its mushrooming tendency

Taxes are the Governments’ way of earning an income which can then be used for various projects that the Governments need to indulge in to help boost the economy of the country or its people. Taxation is important to society because government use the tax revenues to fund projects related to health care systems, education systems, public transports etc. Also, the money collected can also be used to give employment benefits, pensions and other matters that can benefit the society as a whole. Without tax, the Government would not be able to fund the essential projects and services that people need.

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CA Anant N. Pai, an eminent Chartered Accountant, has made the passionate plea that all citizens, and professionals in particular, should be vocal in their support of the Armed Forces. He reminds us that our prosperity and happiness is due to the sacrifices made by the Armed Forces in keeping the enemy at bay. Our support is the fuel that keeps the Forces going, he emphasizes

If, we walk with swagger through the tribunal corridors, fully suited and flaunt our argumentative skills in courtrooms – so as take name, fame and money home, it is possible only become some 24 year old lad called Nitin Kumar, had donned a BSF jawan uniform and taken on a bunch of fully armed terrorists single handed in Baramulla -, so as to lay down his life for us. He could have also studied law or chartered accountancy; become a tax practitioner and slept on a soft bed in comfort of secure homes just like us – couldn’t he? No, he did not do. He chose to become a BSF jawan to protect our homes, families and peace.

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