Advocate Sanjiv Shah has explained the entire law on “audi alteram partem” in a simple and clear manner. He has referred to all the important judgements on the topic and highlighted their nuances. He has also clarified the misconceptions that prevail with regard to the legal principles
1) Litigating Counsel’s safest haven and refuge which normally faces the least resistance from the adjudicating seat is urging the ground of natural justice. Somewhere at the back or corner of the arguing Counsel’s mind there is a comfortable feeling that, in a worst scenario and as a last resort, more particularly, where case on merits is dicey, a judge, howsoever, hostile vis-a-vis other pleas will uphold submission of contravention of golden rules of justice. Such approach of Counsel is also seen in conferences with clients while planning and framing strategies for arguments depending upon facts and circumstances surrounding a particular case. Indeed this is also conference weapon to persuade and convince clients that they have an ace up their sleeve, probably just enough to save them from an adverse result.
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Dr. K. Shivaram, Senior Advocate, and Mr. Shashi Bekal, Advocate, have explained in meticulous detail the entire law and practice relating to the newly introduced scheme of ‘Faceless Appeals’. The learned authors have also offered valuable suggestions on how the scheme can be improved. They have also prepared a check-list which will enable taxpayers and professionals to derive maximum advantage from the scheme
The Hon’ble Prime Minister on August 13, 2020 launched the platform for Honouring the Honest which included a Scheme for Faceless Appeals inter alia which has been notified by the Central Board for Direct taxes (CBDT) vide Notifications dated September 25, 2020 bearing No. 76 of 2020and No. 77 of 2020. The Finance Act, 2020 (2020) 428 ITR 1 (St)vide amendment in section 250(6C) of the Income-tax Act, 1961 (Act) expanded the scope of e-assessment to include e-appeals. This Article aims at explaining the provisions relating to the Scheme of Faceless Appeals and addressing certain issues arising out of the Scheme.
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Advocate Aditya Ajgaonkar has explained the concept of “faceless appeals” proposed to be introduced in the ITAT by the Finance Bill 2021. He has opposed the proposal and argued that it is a serious affront to the independence of the judicial function and a violation of the principles of natural Justice. He has pleaded that the proposal should be reconsidered by the Government
The contribution of the Tribunal set up under the provisions of the Income-tax Act, 1961, is perhaps underappreciated and under emphasised in today’s legal world where rapid tribunalisation has become a norm rather than an exception in the pursuit of dispensing fair, transparent and rapid justice to the litigants. The taxpayers that have found themselves on the wrong side of the tax exchequer, despite having a good case on merits, have managed to get justice for themselves through the tribunal.
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In CIT vs. Shriram Ownership Trust (2020) (122 taxmann.com 155), the Madras High Court has held that a Respondent in an appeal filed u/s 260A of the Act is not entitled to challenge an adverse finding by the Tribunal. Advocate Sukhsagar Syal has explained the implications of the judgement and argued that it requires reconsideration. He has also offered practical suggestions on what litigants should do to safeguard their interests
1. A litigant approaches a Court expecting and praying for a specified set of reliefs under the relevant laws, but what does the law expect of a litigant? How far and to what extent should a party pursue litigation? Whether even after obtaining complete relief from an appellate forum (for instance Tribunal), is the winning party entitled to challenge such an order in appeal before a higher forum, if one or more of the grounds were decided against it, even though the issue was decided in its favour on another ground(s)? In a recent judgement in the case of CIT vs. Shriram Ownership Trust (2020) (122 taxmann.com 155), the Madras High Court has held that a Respondent in an appeal filed u/s 260A of the Act is not entitled to challenge an adverse finding by the Tribunal. Advocate Sukhsagar Syal has explained the implications of the judgement and argued that it requires reconsideration. He has also offered practical suggestions on what litigants should do to safeguard their interests”>CIT vs. Shriram Ownership Trust (2020) (122 taxmann.com 155), the Madras High Court had an occasion to consider this issue.
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The CBDT has issued a clarificatory circular no. 36 or 2016 dt. 25-10-2016 for exempting capital gain on acquisition of non-agricultural lands by the Government. CA Anilkumar Shah has studied the Circular and the law on the subject and explained various important issues arising therefrom
1. Provisions under The Income Tax Act, 1961
Sec. 10(37) was inserted by Finance (No.2) Act 2004 w. e. f. 1-4-2005 i.e. AY 2005-06 and onwards. The section reads as under-
In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included—
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CA Anilkumar Shah has earlier explained the law relating to the taxation of donations to the corpus of a trust which is not registered under sections 12A/AA of the Income-tax Act, 1961. He has now answered queries on the effect of clause (x) to S. 56(2) of the Act on the taxability of corpus donations and also for donations from one trust to the other. A pdf version of the article is available for download
In response to my previous article published on itatonline.org, there were queries raising doubts on taxability of corpus donations, in view of insertion of cl. (x) to Sec.56(2) of the Act and also for donations from one trust to the other. In the following article, I have tried to analyse the issues for corpus donations.
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Advocate Shashi Bekal has appreciated the efforts of the CBDT in issuing Circular No. 21 of 2020 and clarifying the several doubts that tax professionals and taxpayers had with regard to The Direct Tax Vivad Se Vishwas Act, 2020. The ld. author has explained the salient points of the Circular in a succinct manner. He has suggested that the CBDT may consider appointing a Centralised Nodal Officer in each city to speedily resolve any incremental difficulties that may arise
The Vivad se Vishwas (VSV) Scheme was announced by Union Finance Minister Nirmala Sitharaman during her budget speech on February 1, 2020 (2020) 420 ITR 115 (st) (146). This has been introduced as a way to reduce the pendency of litigation under the Income tax Act, 1961 (Act) with a golden shake hand.
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CA Mohit Gupta has pointed out that the Income-tax department usually relies on the extrapolation principle in search assessments to make arbitrary additions even for years where no incriminating material has been unearthed. He has considered whether the Department is justified in doing so and explained the entire law on the subject with reference to leading judicial precedents
During the course of a Search and Seizure action, it is seen in practice that incriminating material in the form of documents, diaries and other evidences are found which sometime reflects undisclosed income of an assessee only for a particular limited period of time and not for all the assessment years to be covered u/s 153A of the Income Tax Act’1961. However, it is seen that the during the course of search assessments, the finding of such undisclosed for a particular period is extrapolated to the entire block period of assessments as envisaged u/s 153A of the Income Tax Act’1961.
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Advocate Shashi Bekal has explained the salient features of the amendments proposed by the Atmanirbhar Bharat Package 3.0 to the Income-tax Act, 1961 to provide relief to Real Estate Developers and home buyers. He has also considered whether the restrictive nature of the proposed incentive makes it ultra vires the Constitution
On November 12, 2020, The Hon’ble Finance Minister Nirmala Sitaraman launched the Atmanirbhar Bharat 3.0 package. Several applaudable changes introduced. An amendment to the Income tax regime inter aliachanges was proposed. The amendment is with respect to the variance in real estate transaction on account of a variance from stamp duty value of the property.The Article aims at explaining the proposed amendment in the Income-tax Act, 1961 (Act) and the chalks out a time line as to how the said provisions was inserted& how they have evolved over time.
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CA Sujay Ajgaonkar has systematically set out the details of the stimulus package (Atmanirbhar 3.0) unveiled by the Finance Minister a few days ago. He has detailed how these stimulus measures will boost Employment and revive the Economy
Our honorable Finance Minister Smt Nirmala Sitharaman, in her press conference, highlighted the current state of the Indian economy while rolling out the Atmanirbhar 3.0 relief schemes.
Honourable Finance Minster stressed at a strong recovery in the health of our economy, stating certain facts as follows:
- Covid active cases declined from over 10 lakh to 4.89 lakh, with the case fatality rate at 1.47%.
- The Composite Purchase Managers Index (PMI) rose to 58.9 in October Vs. 54.6 last month, stating the strongest increase in output in around 9 years.
- Energy consumption growth rose 12% YoY in October.
- GST collections stood at around Rs. 1.05 Lakh Crore in October, a 10% growth YoY.
- Daily railway freight tonnage grew by an average of 20% YoY.
- Bank Credit growth improved by 5.1% YoY.
- The markets are at record highs with FPI’s turning net investment positive and our Forex reserves stood at USD 560 Billion.
- FDI inflows between April to August was around USD 35.37 billion recording a 13% rise YoY.
- The RBI predicts the Indian economy retuning to positive growth in Q3 of this financial year, a quarter earlier than the last forecast.
- Moody’s revises India’s 2020 GDP forecast to -8.9% from -9.6%; raises 2021 forecast to 8.6% from 8.1%
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