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Sunil-Lala

Shri Sunil Moti Lala, Advocate, has prepared a compilation of 160 Important judgments on transfer pricing (94 cases), International Tax (5 cases) and Domestic Tax (61 cases) reported in May 2017. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. A PDF copy of the digest is available for download. He has also given the appeal numbers in several cases so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of all the important judgements dealing with transfer pricing, international taxes and domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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Advocate P.C. Joshi, the well known expert on GST, has explained the entire law relating to whether Advocates are liable for registration, and to pay tax, under the Goods and Service Tax Act (GST). He has also explained whether the payers of fees to Advocates are liable for ‘reverse charge’. He has also clarified doubts as to whether Advocates have to issue their Memo of fees in any particular format

Though no official notification is so far issued, as per the press report, the Goods and Service Tax Act (GST) will be enforced on and with effect from 1st July, 2017. Even if that date is postponed to some other date in future still the moot question about the status of Advocates rendering legal services would arise for our advocate members. It is from that point of view, I would examine hereinthe relevant legal provisions under the said enactment, and offer may view thereon.

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Shri Saurabh Soparkar, Senior Advocate, has expressed outrage at the undue harassment of taxpayers by the income-tax department. He calls this harassment ‘Tax terrorism’ and argues that the root cause for it is lack of accountability. He submits that an institutional framework of “checks and balances” has to be created to prevent abuse of power and authority by the tax officials

Justice Oliver Wendell Holmes said “I like paying taxes. With them I buy civilisation.” It is also said by Veda Vyasa said in the Mahabharata that a king should collect taxes like a bee collects nectar from flowers, painlessly.

However, Sabyasachi Mukherji in CWT vs. Arvind Narottam 173 ITR 479 has observed as under:

“……..true that tax avoidance in an under-developed developing economy should not be encouraged on practical as well as ideological grounds. One would wish, as noted by Reddy, J. that one could get the enthusiasm of Justice Holmes that taxes are the price of civilization and one would like to pay that price to buy civilisation. But the question which many ordinary taxpayers very often in a country of shortages with ostentious consumption and deprivation for the large masses ask, is does he with taxes buy civilisation or does he facilitate the wastes and ostentiousness of the few. Unless wastes and ostentiousness in the Government’s spendings are avoided or eschewed, no amount of moral sermons would change people’s attitude to tax avoidance..”

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Dr. K. Shivaram, Senior Advocate, laments that despite the strictures of the Supreme Court that the Income-tax department should “wake up“, there is not much improvement at the ground level. He argues that urgent judicial and legal reforms are absolutely imperative not only to clear the backlog of cases but also to ensure that future cases are decided promptly. He has also offered valuable suggestions to aid the process

1. Introduction

In 1997, when India celebrated 50 years of Independence, the Chamber of Income Tax Consultants celebrated this golden anniversary in a unique way by dedicating a publication titled “50 Landmark Judgments on Direct Taxes“ which was released by then Chief Justice of Bombay High Court, Hon’ble Justice Mr. M. B. Shah. The Hon’ble Prime Minister of India, Shri Narendra Modi, has a great vision for India and when we celebrate our Platinum Jubilee of Independence of India, we as citizens of this great country, should make a honest attempt to fulfil his vision of nation building process by suggesting ways and means to reduce the tax litigation, ensure better tax administration and adopt better tax-payer friendly tax laws.

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Sunil-Lala

Shri Sunil Moti Lala, Advocate, has prepared a compilation of 136 Important judgments on transfer pricing (86 cases), International Tax (12 cases) and Domestic Tax (38 cases) reported in April 2017. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. A PDF copy of the digest is available for download. He has also given the appeal numbers in some cases so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of all the important judgements dealing with transfer pricing, international taxes and domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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Sohrab E. Dastur, the eminent jurist, has provided a masterful explanation of the reasons for the rampant corruption in modern-day society. He has offered tangible suggestions on what the Government and the judiciary should do to discourage the malaise from spreading further

Hardly a day passes without the newspapers reporting an act of corruption by a businessman, a politician, a professional person and, now even sports bodies (the wag may say it’s not cricket!) and, sometimes, (fortunately, very rarely) even by a judge of a High Court or the Supreme Court. As per a recent dismaying report, apparently even the armed forces are not immune from the cancer of corruption. Periodically reports appear of scandals and scams. About 60 years ago we had the “Jeep scandal” involving Mr. V. K. Krishna Menon (then the Indian High Commissioner to the U.K. which was said to involve Rs 80 lakh. It is sad that each succeeding misdemeanour makes the earlier one look as “chicken feed: and which, therefore, gets consigned to history!

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Vinay-Kawdia

CA Vinay Kawdia has examined the entire law applicable to sections 269ST and 271DA of the Income-tax Act, 1961. These provisions were inserted by the Finance Act 2017 to prohibit specified cash transactions and levy a penalty for contravention. The author has analyzed numerous judgements and explained with clarity the precise impact of these provisions

In order to curb black money and related unaccounted wealth and to achieve the vision of the Government to move towards a cash less economy, the Finance Act 2017 introduced new section 269ST w.e.f. 01.04.17 to the effect that no person shall receive an amount of two lakh rupees or more—

(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or         
(c) in respect of transactions relating to one event or occasion from a person,

otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.

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Sunil-Lala

Shri Sunil Moti Lala, Advocate has prepared a compilation of 562 important judgments (transfer pricing (375 cases), International Tax (32 cases) and Domestic Tax (155 cases) reported in January to March 2017. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. A PDF copy of the digest is available for download. He has also given the appeal numbers in some cases so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of all the important judgements dealing with transfer pricing, international taxes and domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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Paras-Dawar

In Part I, CA Paras Dawar explained the legal aspects of GAAR’s applicability and its consequences. In Part II, he has explained the procedural aspects with respect to the implementation of GAAR with particular reference to the safeguards prescribed by the Shome Committee which curtail the unfettered power of the AO to challenge aggressive tax avoidance arrangements by tax payers

1. Introduction

In my previous article under the title ‘Understanding General Anti-Avoidance Rule (‘GAAR’) – Part 1’, I had thrown light on the legal aspects of GAAR’s applicability and its consequences.GAAR gives the tax department unfettered power to challenge aggressive tax avoidance arrangements by tax payers. Recognising this situation, Dr.Shome Committee prescribed various safeguards while invocation of GAAR provision. The Parliament in its wisdom duly incorporated these safeguards under the Income Tax Act, 1961 (‘Act’).

In this article, I wish to discuss the procedural aspects with respect to implementation of GAAR.

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CA Jyoti Gupta has considered the controversial question as to whether a disallowance under section 14A and Rule 8D can be made in respect of securities which are held by an assessee as stock-in-trade. She has referred to the latest judgements on the issue and explained the issue in the proper perspective

As could be discerned from the heading itself, vide this article we would be discussing the provisions of Sec.14A of the Income-tax Act.

The heading of Sec.14A, reads ‘Expenditure incurred in relation to income not includible in total income’.

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