Month: April 2020

In Yum! Restaurants (Marketing) Pvt Lrd vs. CIT, the Supreme Court has laid down important principles of law concerning the taxation of mutual associations. CAs Satyajeet Goel and Himanshu Aggarwal have conducted a detailed study of the judgement. They have systematically analyzed the judgement and identified all the core principles of law emanating from it

CAs Naresh Kumar Kabra and Ankit Modi have provided valuable guidance on how businesses will have to adapt to survive the disruption caused by Covid-19. The authors have given pointers on how the cash crisis can be met through orthodox methods of cost cutting. They have also provided practical insights as to ‘What Comes After’ the lockdown and how to prepare for it. A pdf copy of the article is available for download

CA Nidhi Surana has explained the entire law relating to the levy of penalty on undisclosed income unearthed during search proceedings as contained in sections 271AAA and 271AAB of the Income-tax Act, 1961. She has also pin-pointed the numerous controversies that have arisen under these provisions. She has also referred to all the important judgements on the subject and explained their nuances

CA Sanjay Mody has raised the interesting question whether section 194N of the Income-tax Act 1961, which provides for deduction of tax at source in respect of cash withdrawal from banks etc, is Constitutionally valid. He has put forward the convincing argument that as a transaction of withdrawal of money by a person from his own bank account cannot give rise to income chargeable to tax, the question of subjecting such a transaction to TDS cannot arise. He has made good his contention by relying on several judgements

Advocates Nishant Thakkar, Hiten Chande and Jasmin Amalsadvala have made out a compelling case as to why the Equalisation Levy is constitutionally invalid. The learned authors have explained with the aid of practical examples that the levy has extra-territorial operation and fails the Nexus test and the Object test. They have also argued that the Equalisation levy is nothing but an alternate form to computing and collecting Income-tax and that the provisions of a DTAA must be available for application and due benefit

CA Vinay V. Kawdia has explained in a systematic manner the TDS provisions as applicable to Co-operative societies/Banks (as a payer/payee of interest other than interest on securities) after considering the related amendments by Finance Act 2020. He has cited the relevant judgements to support his propositions

Advocate Shashi Ashok Bekal has complimented the CBDT for its proactiveness in clarifying the doubts of taxpayers. However, he has pointed out that certain important doubts have still not been clarified. He has requested the CBDT to take a liberal view regarding these issues and issue a speedy clarification. He has assured that a timely clarification would not only help tax payers and the taxman but will also play a role with respect to achieving the desired results for the administration

Advocate Narayan Jain, LL.M, has explained in detail the provisions of section 271AAD of the Income-tax Act, 1961, which provides for the imposition of penalty. He has also dealt with the corresponding provisions in the GST Act. He has cautioned taxpayers to cross-check all entries with the vendors and customers as any negligence or mistake can expose them to imposition of heavy penalties under the Income tax as well as under GST

CA Sujay Ajgaonkar has pointed out that China’s fall from grace over the mishandling of the Covid-19 pandemic has presented an opportunity to India to project itself as a manufacturing alternative to China. He has also pointed out that India’s economic landscape and the recent tax reforms make it very attractive to foreign companies. He has explained the legal position with reference to section 115BAB of the Income-tax Act, 1961 (tax on income of new manufacturing domestic companies) and the discontinuance of Dividend Distribution Tax (“DDT”)

CA Nidhi Surana has conducted an exhaustive study of the provisions of section 271AAD of the Income-tax Act, 1961, which imposes penalty for false entries etc in the books of account. She has explained the precise scope of the section with reference to practical examples and case laws. She has opined that the provision is too wide in its scope and poses the danger of being abused by Assessing Officers