The recent judgement of the Supreme Court in New Delhi Television Ltd vs. DCIT has laid down important principles of law relating to the reopening of assessments under sections 147 and 148 of the Income-tax Act. Rubal Bansal, Advocate and Company Secretary, has studied the judgement in detail and explained its nuances. She has also summarized the core principles of the judgement in a succinct manner

Cause Title:                                      New Delhi Television Limited (“NDTV”) vs.    Deputy Commissioner of Income Tax (“DCIT”)
Decided by:                                      Supreme Court of India
Coram:                                               L. Nageswara Rao, J and Deepak Gupta, J
Decided on:                                      3rd April, 2020.
Relevant Assessment
Year (“AY”):                                      2008-09

I Brief background:

1. NTDV is an Indian company engaged in running television channels of various kinds. NDTV Network Plc., U.K. (“NDTV UK”) is a subsidiary of NDTV in United Kingdom.

Read more ›

Advocate Shashi Ashok Bekal has conducted a systematic analysis of the numerous important amendments ushered in by the Finance Act 2020. He has explained in a comprehensive manner the current law, the proposed law, the amendment to the proposed law, and its implications on tax payers and tax man

I. Introduction

The Finance Bill, 2020 (2020) 420 ITR 115 (st) (146) has been passed by the Parliament with around 50 plus amendments but without any discussion on March 23,2020. This article aims at a deep dive to understand these amendments as it stands in the Finance Act, 2020; it would be imperative to understand the current law, the proposed law, the amendment to the proposed law, and its implications on the tax payers and tax man. Accordingly, each key amendment will be dealt in the above-mentioned sequence.

Read more ›

CA Rohan Sogani has explained in detail the provisions of law relating to conversion of a company into a LLP with particular emphasis on section 43CA and its impact on stock-in-trade held by a Real Estate Developer. He has referred to all the important judgements on the issue. The effect of the Income Computation and Disclosure Standards (ICDS) relating to valuation of inventory has also been explained

Limited Liability Partnership (LLP), as a form of business entity, has been in existence in India since 2009, with the enactment of the Limited Liability Partnership Act, 2008 (LLP Act). LLP is viewed as an alternative corporate business vehicle that provides the benefit of limited liability and also allows its members the flexibility of organizing their internal structure, as a partnership, based on a mutually arrived agreement. LLP form of business entity offers operational flexibility and tax efficiency in certain specific cases. Based on these benefits large number of existing companies are now converting themselves into LLPs.

Read more ›

Dr. K. Shivaram, Sr. Advocate, and Advocates Aditya Ajgaonkar and Shashi Ashok Bekal, have conducted a detailed analysis of the recent order of the Supreme Court extending suo motu the period of limitation. The learned authors have explained the provisions of Articles 141 and 142 of the Constitution which enabled the Supreme Court to pass the extraordinary and unprecedented order. They have also analyzed whether the said order applies to the Income-tax Act and extends the period of limitation prescribed therein

I. INTRODUCTION

The Hon’ble Supreme Court through a bench presided over by the Chief Justice S. A. Bobde,  Justice L. N. Rao and Justice Surya Kant vide Order dated March 23, 2020 in the case for Cognisance for period of Limitation In re in Suo Motu Writ Petition No. 3 of 2020 (‘the Order’) has taken ‘suo-moto’ cognizance of the dire situation arising out of the challenge faced by the country on account of Covid-19 Virus and resultant difficulties that may be faced by litigants across the country in filing their petitions/applications/suits/appeals/all other proceedings within the period of limitation prescribed under the general law of limitation or under Special Laws (both Central and/or State).

Read more ›

CA Shivangi Samdhani has explained the problems plaguing the Vivad se Vishwas scheme and why it may not be as successful as is hoped by the Government. She has also compiled a few questions which pose challenges in the interpretation and implementation of the scheme. She has answered the questions and suggested workable solutions

Continuing the trend of introducing settlement schemes and inspired by the success of the earlier schemes, Modi Government has come up with yet another scheme Vivad se Vishwas (VsV). The VsV scheme is for settlement of Income Tax disputes and aims on settlement of 4,83,000 cases which are pending before different appellate forums.

Read more ›

Advocate Shashi Bekal has conducted a holistic analysis of the Vivad se Vishwas scheme in the light of all recent developments. He has also provided a practical guide on how the declaration forms have to be filled and payment made. He has called upon the Government to extend the due date for payment of the tax in view of the prevailing lockdown in the Country. He has argued that the failure to extend the due date will expose the Scheme to serious legal challenge from disgruntled taxpayers

1. Introduction:

The Vivad se Vishwas (‘VSV’) Scheme was announced by Union Finance Minister Nirmala Sitharaman during her budget speech on February 1, 2020. 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 via a one-time-exit-window.

Read more ›

Advocates Paras Savla and Harsh Shah have conducted a critical analysis of CBDT’s Circular No. 7 dated 4th March, 2020 which answers 55 FAQs on the Vivad Se Vishwas Scheme. The learned authors have pointed out that there are a number of other controversial issues that require urgent clarification from the CBDT. They have identified these issues and also offered their own interpretation as to what the answers should be

In India, financial year begins from 1st April and ends on 31st March. The year ending saddles, the Chartered Accountants fraternity with lots of work, which in itself keeps them under great pressure. Added to this, is the Vivad se Vishwas scheme, which again sets 31st March as the due date to get a beneficial rate for settling disputes. Be it as it may, though the bill was introduced on 5th February, the amended bill was placed and passed only on 4th March, by Lok Sabha.

Read more ›

Advocate Shashi Bekal has conducted a review of the Vivad se Vishwas Bill and its latest amendments. He has explained the precise scope of the Bill and the amendments. He has opined that while the amendments does improve the situation and removes a lot of uncertainty in the minds of taxpayers, there is still room for improvement. He has offered suggestions in that behalf

The Direct tax Vivad se Vishwas Bill, 2020 (‘Scheme’) (2020) 420 ITR 146 (St) Para 126,was incepted at para 126 of the 2020 Budget Speech. The name of the scheme literally means, from litigation to faith, thereby expressing the intentions of the current administration to amicably settle disputes pending before any forum and improve the faith of the people in the Nation.

Read more ›

The Finance Bill 2020 has proposed several amendments to the Goods and Service Tax Act with a view to impose penalty and prosecution upon persons facilitating and benefiting from fake invoice transactions. The Bill also seeks to make fraudulent availment of Input tax credit into a cognizable and non bailable offense at par with supply without an invoice or fake invoicing provisions. CA Sujay Ajgaonkar has explained the scope of these amendments in a clear and straightforward manner

On the 1st of February 2020, our honorable Finance Minister Shrimati Nirmala Sitharaman had presented the Budget 2020-21 and had proposed various amendments to the Goods and Service -tax Act. One of the highlights of these proposed amendments was to extend penalty and punishment to people facilitating and benefiting from fake invoice transactions. Also, fraudulent availment of Input tax credit has been made cognizable and non bailable at par with supply without an invoice or fake invoicing provisions. These aspects have been explained in detail towards the end of this article.

Read more ›

Advocate Neelam Jadhav has conducted a meticulous comparison of the Direct Tax Vivad se Vishwas Scheme 2020 with the Kar Vivad Samadhan Scheme 1998 and explained the similarities and differences between the two. She has also prepared a compilation of all the important judgements which may answer questions and controversies arising under the new scheme

“Vivad Se Vishwas” Scheme – To implement the scheme in a  proper perspective require holistic approach by tax administration. 

The “Vivad Se Vishwas” scheme was announced by our honourable Union Finance Minister Mrs Nirmala Sitharaman during her budget speech on February 1, 2020. (2020) 420 ITR 115 (St.)(146). This scheme is brought in to reduce litigation in direct taxes. Vivad se Vishwas is a scheme, under which taxpayers whose tax demands are locked in dispute in multiple forums, can pay due to taxes by March 31, 2020, and get a complete waiver of interest and penalty. The “Vivad se Vishwas” scheme is similar to the ‘Indirect Tax, “Sabka Vishwas” scheme, which was introduced in July 2019 during Budget, 2019.

Read more ›