Shri Sunil Moti Lala, Advocate has prepared a compilation of 300 important judgments (transfer pricing (155 cases), International Tax (10 cases) and Domestic Tax (135 cases) reported in November & December 2016. 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 all 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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Shri. K. C. Singhal, former Vice President of the ITAT, has opined that certain provisions in the Finance Bill 2017 are unjustified and have the potential to cause immense hardhip to taxpayers. The learned author has explained with examples as to how the provisions not only defeat the legislative intent but also put onerous burden on the taxpayer. He has urged the Government to reconsider its decision to enact these provisions into law

Finance Bill 2017 contains huge proposals to amend the Income Tax Act 1961 having great impact. Some of the proposals are beneficial to the taxpayers while some of these are to curb the misuse of the existing provisions. Apart from this, certain proposals, in my opinion, need urgent reconsideration by the Government.

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Shri. K. C. Singhal, former Vice President of the ITAT, has conducted an expert analysis of the Pradhan Mantri Garib Kalyan Yojna 2016, inserted by the Taxation Laws (Second Amendment) Act 2016, to provide amnesty to persons offering their undisclosed cash holdings to tax. The analysis covers all the important aspects of the Scheme and provides succinct answers to frequently asked questions by taxpayers and tax professionals

Introduction

After demonetization of high denomination notes, the Central Govt. has introduced a fresh Amnesty Scheme whereby any person, having undisclosed income in the form of cash or deposits with specified entity, can declare the same before the specified authority within the specified time subject to fulfillment of the conditions specified in the provisions of Sections 199A to 199R of Finance Act 2016. Before analyzing the aforesaid relevant provisions, it would be appropriate to refer to the salient features of the scheme.

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The Chamber of Tax Consultants organized a public meeting in which several important issues relating to the tax and legal implications of demonetisation were discussed. The eminent tax experts who addressed the gathering also answered several questions of the audience. The videos of the meeting together with a transcript of the discussions is available for perusal. The discussion and the advice of the experts will prove invaluable to all tax payers and professionals who are grappling with the complexities of the demonetisation scheme

DEMONETISATION – TAX & LEGAL ISSUES

Mr. V. Sridharan & Dr. K. Shivaram (Senior Advocates), C.A. Pradip Kapasi and C.A. Dr. Dilip Sheth, Panel Moderator – C.A. Jayant Gokhale

Held on 7-12-2016 at KC College, Fort

Attendance – over 700 Professionals and Others Summary for Public Benefit

— Summary by Sashank Dundu, Advocate

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CA P. N. Shah, an eminent tax expert, has conducted a critical analysis of the Taxation (Second Amendment) Bill, 2016. He argues that while the Bill provides welcome clarity as to the taxation of, and the levy of penalty on, the deposit of unaccounted cash, declarants may face draconian consequences under the laws relating to Benami transactions, money laundering, foreign exchange etc. He urges the Government to issue appropriate clarifications so that all uncertainties are removed and demonetization becomes a rousing success

I. BACKGROUND:

1.1 On 8th November, 2016, the Central Government demonetized Rs. 500/1000 Currency Notes (Old Notes). New Currency Notes of Rs. 500/2000 have been issued to replace the old Currency Notes. Old Currency Notes of Rs. 500/1000 can be deposited in the bank account of the person holding such old notes between 10th November to 30th December, 2016. Once the old notes are deposited in the Bank Account of the person he will have to explain the source of such deposit to the Income tax Authorities during the course of his assessment proceedings. The Government has recognized in its public announcements that an Individual or HUF may be holding some such old notes out of their savings and kept them for household needs. Therefore, a public assurance has been given that the Income tax Department will not inquire about the source of such deposits if the total deposit during the above period is less than Rs. 2.5 lakhs.

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Dr. Raj K. Agarwal & Dr. Rakesh Gupta have explained the salient terms of the Taxation Laws (Second Amendment) Bill, 2016 which sees to assess the deposit of unaccounted high denomination notes in the bank and also to levy penalty thereon. The experts have expressed concern that the terms of the proposed law may discourage those who want to come clean. They have suggested that the Government should adopt a constructive, pragmatic and forward looking approach rather than being punitive

Demonetization of high value currency with effect from 9.11.2016 flummoxed those who were hoarding such currency in abundance. Obviously, it was unaccounted cash. Caught by surprise, such persons thought of declaring such amount as current year’s income by paying tax @ 30% plus surcharge. But government made its intention clear that such declarations would attract penalty of 200%.

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