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An Analysis Of The Supreme Court’s Judgement In Maxopp Investment 402 ITR 640 On S. 14A/ Rule 8D

Vipul Joshi

In Maxopp Investment Ltd v/s CIT 402 ITR 640 (SC), the Supreme Court has laid down important law on the interpretation of section 14A and Rule 8D. Advocate Vipul Joshi has conducted a detailed study of the judgement in juxtaposition with the earlier judgements of the apex court in Godrej & Boyce Mfg. Co. Ltd v/s DCIT 394 ITR 449 (SC)] and CIT v/s. Essar Teleholdings Ltd 401 ITR 445 (SC) and explained its precise implications

An Analysis
{Note: The underline and the bold font, whenever used, are for emphasis purpose only}

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Admissions & Retractions In Income-tax Proceedings With Reference To Survey, Search And Seizure

Advocate Narayan Jain has explained the entire law and procedure relating to admissions and retractions in income-tax proceedings. He has explained the extent to which the admissions are binding on the taxpayers. He has also explained the procedure by which taxpayers can retract from their admissions. All the important case laws on the subject have been referred to with a succinct commentary on their applicability

1.0 Introduction:

As in judicial proceedings in Courts, the issues in the income-tax proceedings are also decided on the basis of evidences which include both oral and documentary evidences. Oral evidences, include statements which are made before the income-tax authorities in relation to matter of inquiry, Search and Survey proceedings and may also include examination of the assessee or related parties.

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Section 92CE – Secondary Adjustments In Transfer Pricing: An Analysis And Emerging Issues

CA Piyush Bafna

CA Piyush Bafna has conducted a systematic and thorough analysis of the newly introduced section 92CE of the Income-tax Act. The author has explained the circumstances in which the TPO is entitled to make secondary adjustment for the difference between the ALP price and actual price of an international transaction. He has also raised issues which are not answered with clarity in the provision and which may lead to controversy between the taxpayer and the department

Introduction –

The Finance Act, 2017 has introduced a new section ‘92CE – Secondary adjustments in certain cases’ w.e.f. 01-04-2018. Prior to insertion of this section, Department did try to make secondary adjustments for difference between the ALP price and actual price of international transaction. Few examples are. Vodafone’s/Shell companies cases, few AMP cases etc.

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Salient Features Of Prohibition Of Benami Property Transactions Act As Amended In 2016


Advocate Narayan Jain and FCA Dilip Loyalka have explained the salient features of the Prohibition of Benami Property Transactions Act as amended in 2016. The precise manner in which the Act identifies benami transactions has been pinpointed. The consequences that will befall persons caught with benami property and the statutory remedies available to them have also been highlighted

Benami Transactions (Prohibition) Act, 1988 was introduced as an Act of the Parliament in 1988 to prohibits certain types of financial transactions. The 1988 Act had come into force on 5th September, 1988. Although benami transactions were declared illegal due to enactment of the said Act, the Act had limited success in curbing them. Updated versions were therefore passed in 2011 and 2016, seeking to more comprehensively and effectively enforce the prohibitions.

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A Comprehensive Guide To The law Of Reopening Of Assessments Under Sections 147 To 153 Of The Income-tax Act, 1961 (Updated: 2018)

Advocate Ajay Singh has conducted a meticulous assessment of the entire law in sections 147 to 153 of the Income-tax Act relating to the reopening of assessments. He has explained the entire procedure in a systematic manner and also cited all the important judgements on the issue. The Guide is an imperative read for all taxpayers and professionals. The law is updated as of September 2018

The scope and effect of a reopening of assessment is still shrouded in mystery even after various judgments of the Supreme Court and High courts. Reassessment is one of the distinguishing weapons in the armoury of the Department, empowers the Assessing Officer to assess, reassess or recompute income, turnover etc, which has escaped assessment. A number of intricate issues crop up during the reassessment proceedings. Inspite of various guidelines laid down by courts, dept constantly prefer to disobey the same leading to quashing of the notice. It seems dept claim as a matter of right to reopen the assessments without appreciating the real intend or purpose behind enacting such provision. Assessment orders are not a scrap of paper which can be overturned by reopening the assessment in casual manner. Finality to assessment must be recognized as matter of principle and reopening should be an exception. Similarly we see assessment are completed merely based on information received from various investigation department without application of mind by the Assessing officer . Some of the issues are been dealt with here under:

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Attempts By CBDT To Destroy The Independence Of CIT (Appeals)

CA Paras Dawar has taken strong exception to the CBDT castigating CsIT(A) for giving relief to taxpayers “on legal grounds“. He has also condemned the CBDT’s offer of “incentives” to CsIT(A) to enhance assessments. He has argued that by dictating CIT(A)s to carry out appellate proceedings with a preconceived notion and in a prejudiced process, the CBDT has crossed the ‘lakshman rekha’ by compromising a fair and unbiased trial promised by our Constitution


Independence of appellate authorities is the foundation for free and fair judicial process. An unbiased mind is a pre-requisite for impartial adjudication by any judicial / quasi-judicial authority. The adjudication of appeals under Income Tax Act, 1961 (‘Act’) are no different. The appellate authorities under the Act comprise of Commissioner Appeals at the first step of the appellate ladder, followed by Income Tax Appellate Tribunal, the High Court and finally the Supreme Court. 

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Section 234F Needs Urgent Review And Withdrawal

Advocate Narayan Jain has argued that the newly inserted section 234F, which levies a fee for late filing of return, is harsh, oppressive, unreasonable and arbitrary. He has pointed out that so-called “fee” is really a “penalty” in disguise and that it results in a violation of the principles of natural justice. He has given convincing reasons in support of his contention


Section 234F, inserted through the Finance Act, 2017 with effect from assessment year 2018-19 is being debated and has been recently challenged in Madras High the constitutionality of Section 234F of the Income Tax Act, 1961, which prescribes a fee for delay in filing IT Returns. Let us analyse various dimensions and see whether imposition of Late Fee under section 234F is justified or not.

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Date Extension Tug Of War

CA Prarthana Jalan has pointed out that it has become an annual ritual for taxpayers and the CBDT to indulge in a “tug of war” for extension of the due date for filing the returns of income. She explains that this sorry state of affairs is because the CBDT invariably delays issuing the relevant ITR Forms and other utilities necessary for filing the returns. The result of the delay by the CBDT is that the taxpayers are deprived of the time contemplated by the statute for preparing the return. The author has pleaded with the CBDT to rise above petty considerations and magnanimously extend the due date without waiting till the 11th hour to do so

Every year’s date extension Tug of War has started between CA’s, lawyers, tax practitioners, trade associations, tax payers on one side and CBDT on another side. Though this time because of new amendments made in Income Tax Act particularly compulsory levy of Fees u/s 234F (though how far it is justified coupled with interest u/s 234A would surely be decided by Hon’ble Courts in the near future) ranging from Rs 1,000/- to 10,000/- for filing of return after due date, the date extension tug of war has started in the July month itself instead of September.

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New ITR Forms for Financial Year 2017-18 to be filed in time

Advocate Narayan Jain has systematically analyzed the numerous income-tax return (ITR) forms issued by the CBDT for AY 2018-19 and explained the circumstances in which each has to be used. He has also elaborated on the documents that are required to accompany the returns. The consequences of not filing the returns within the prescribed due dates have also been explained in a clear manner

The Central Board of Direct Taxes has notified the ITR forms for the Assessment Year (AY) 2018-19. The Income Tax Returns are to be filed within due date specified under section 139(1) and if these are not filed within such date, it may entail Late Fee, as discussed in this article.

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Section 115BBE And Sections 68/69: Taxation Of Unexplained Income Or Investment

Advocate Narayan Jain has conducted a thorough analysis of the provisions of sections 68, 69 and 115BBE and explained their precise implications. The author has answered all the important queries that arise in day-to-day practice with respect to these statutory provisions. He has also referred to all the important judgements on the subject

1. Section 115BBE

This article aims at highlighting the provisions of Section 115BBE of the Income-tax Act, 1961 (Act), applicable from Asst. Year 2017-18 onwards and some practical concerns surrounding its applicability.

1.1 Certain unexplained cash credit, investment, expenditure, etc., are deemed as income under Section 68, Section 69, Section 69A, Section 69B, Section 69C and Section 69D of the Act and were earlier subject to tax as per the tax rate applicable to the taxpayer. As a consequence, in case of individuals, HUF, etc., no tax was levied up to the basic exemption limit and even if such income was higher than basic exemption limit, it could be levied at the lower slab rate.

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