Advocate Dharan V. Gandhi has conducted a thorough analysis of the recent judgement of the Supreme Court in PCIT vs. NRA Iron & Steel 412 ITR 161 on the taxability of bogus share capital and premium u/s 68 of the Income-tax Act. He has explained the nuances of the judgement and also offered valuable advice on what taxpayers should do to be able to successfully distinguish the said judgement from applying to the facts of their case

Introduction

The most effective and lethal weapon used by the Income-tax Department (‘Department’) against evasive tactics used by the assessees, to convert their unaccounted money in accounted one, is section 68 of the Income-tax Act, 1961 (‘Act’).

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Dr. K Shivaram, Senior Advocate, has explained the entire law on the applicability of the rules of evidence to Direct Tax Laws. Copious reference has been made to all the important judgements on the subject. The author has also explained the law in a video presentation. A pdf copy of the article is also available for download

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In P. Leelavathi vs. V. Shankarnarayana Rao the Supreme Court has set the guidelines and paved the roadmap to be followed by the lower courts and authorities while dealing with the issue of Benami properties under the new law. Advocates Ashwani Taneja & Renu Taneja have analyzed the judgement in meticulous detail and explained all of its salient features

Trend Setter judgment from Hon’ble Supreme Court on Benami Law

Brief Analysis of its far reaching implications in the implementation of New Benami Law

In the case of P Leelavathi vs V Shankar Narayan Rao (Supreme Court)

(In Civil Appeal Number 1099 of 2008 Dt. 9th April, 2019)

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Advocate Ashwani Taneja has analyzed the recent judgement of the Appellate Tribunal for Benami Transactions in Akashdeep, IO vs. Manpreet Estates LLP and identified the important principles of law emanating from it. The judgement provides important clarity as to the burden of proof and the role of the Evidence Act as well as the principles of general law concerning benami transactions

ANALYSIS OF THE HON’BLE APPELLATE TRIBUNAL’S JUDGEMENT IN THE MATTER OF: INITIATING OFFICER AND DY. COMMISSIONER OF INCOME TAX (BENAMI PROHIBITION) UNIT-2, MUMBAI VERSUS M/s MANPREET ESTATES LLP & ORS

INTRODUCTION

A landmark judgment has been passed by the Hon’ble Appellate Tribunal (PBPT and Benami Law), New Delhi wherein fine points of the New Benami Law have been decided by the Hon’ble Chairman of the Tribunal.

The note-worthy observations in the judgment have been summarized in the following points:-

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CA Anilkumar Shah has explained whether the collection by the Charity Commissioner of contribution on surplus from Charitable Trusts in the state of Maharashtra is legal or not in the light of the statutory provisions and the judgement of the Supreme Court in State of Maharashtra vs. The Salvation Army 1975 AIR 846

Background

Before the enactment of Bombay Public Trusts Act, 1950 in the state, i.e. in the pre-freedom era, there were as many laws as the Princely states. Added to it were laws for various communities, e.g. Parsi, Muslims etc. and those enacted under the British rule.

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Advocate V. P. Gupta has systematically analyzed the statutory provisions and Instructions issued by the CBDT on the issue of stay of demand and explained how the Courts have interpreted the same. He also clearly spelt out the rights and obligations of the taxpayers and the Department with regard to coercive steps to recover taxes

It is well known that the Income-tax department is very aggressive these days in making additions in the assessments and also for collection of demand raised pursuant to the assessment orders. Inspite of the fact that courts have repeatedly observed that  Assessing Officers are duty bound to consider the merits of the cases and also the financial hardships of the assesses, the Assessing Officers invariably  do not consider the merits.

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CA Rajan Vora delivered a presentation recently at the BCAS on recent important decisions in which he has analyzed several judgements and explained their nuances. A video of the presentation is available. The presentation is also available for download in pdf format

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CA Ashish Chadha has analyzed all the recent judgements of the Supreme Court and the High Courts on the topic of how the AO should record his satisfaction before making disallowance u/s 14A of the Income-tax Act, 1961 read with Rule 8D. The author has explained the salient points of the important judgements, some conflicting with each other, in a succinct manner

There have been various controversies surrounding the interpretation and application of Section 14A of the Income-tax Act, 1961 (‘Act’), which have been subject to extensive litigation. The most recurrent and significant issue being that of recording of satisfaction by the Assessing Officer (‘AO’) as to the incorrectness of claim made by an assessee. Recently, there have been various judicial decisions rendered by the High Court(s) and the Supreme Court, whereby much needed clarity has evolved regarding such controversies.

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CA Paras Dawar has conducted a detailed analysis of ‘The Banning of Unregulated Deposit Schemes Ordinance, 2019‘ and explained all of its nuances. He has cautioned that while the Ordinance is well-intentioned, some of its provisions are vaguely worded and can have draconian consequences on legitimate business transactions

Introduction

The Hon’ble President of India, on the aid and advice of the Union Government, on February 21, 2019 has promulgated ‘The Banning of Unregulated Deposit Schemes Ordinance, 2019’ (hereinafter referred to as ‘Ordinance’). While the Union Government called it a landmark law that will help fighting the menace of illicit deposits and Ponzi schemes which loot hard earned money of public, the Ordinance has received a lukewarm reception from the professional community which feels that the law has gone far beyond its mandate and would gravely impact legitimate business transactions.

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Shri. S. N. Inamdar, Senior Advocate, has dealt with the controversial topic of whether the conversion of a company into an LLP results in a “transfer” of capital assets and gives rise to capital gains. He has argued that the judgement of the ITAT in ACIT vs. Celerity Power LLP 174 ITD 433 (Mum) is wrong and requires reconsideration. He has made good his submission with a detailed analysis of the statutory provisions and judgements of the High Courts

1. Income Tax Appellate Tribunal, Mumbai Bench-J, in the case of ACIT vs. Celerity Power LLP 174 ITD 433/197 TTJ 45 (Mum) has passed an order dated November 16, 2018 in which Hon. Tribunal has held that the conversion of the company into LLP gives rise to capital gains as there were transfers of capital assets.

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