{"id":5990,"date":"2019-05-10T14:00:10","date_gmt":"2019-05-10T08:30:10","guid":{"rendered":"http:\/\/itatonline.org\/articles_new\/?p=5990"},"modified":"2019-05-10T14:01:04","modified_gmt":"2019-05-10T08:31:04","slug":"treatise-on-the-rule-of-evidence-as-applicable-to-direct-tax-laws","status":"publish","type":"post","link":"https:\/\/itatonline.org\/articles_new\/treatise-on-the-rule-of-evidence-as-applicable-to-direct-tax-laws\/","title":{"rendered":"Treatise On The Rule Of Evidence As Applicable To Direct Tax Laws"},"content":{"rendered":"

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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<\/strong><\/p>\n

Link to download this article in pdf format is at the bottom<\/a><\/span><\/div>\n<\/p>\n

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Sr. No.<\/td>\n

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Particulars<\/td>\n<\/tr>\n

1.<\/td>\nIntroduction.<\/td>\n<\/tr>\n
1.2.1<\/td>\nNatural Justice<\/td>\n<\/tr>\n
1.2.2<\/td>\nEvidence, how to be judged- Human probabilities. <\/td>\n<\/tr>\n
1.2.3<\/td>\nEvidence Act- Income -tax Act, 1961. <\/td>\n<\/tr>\n
1.2.4<\/td>\nSurrounding circumstances and applying test of human probabilities. <\/td>\n<\/tr>\n
2.<\/td>\nProvisions in the Income-tax Act, 1961,where a specific reference is made of the Indian Evidence Act, 1872.<\/td>\n<\/tr>\n
3.<\/td>\nProvisions of the Indian EvidenceAct,1872 Relevance to Income-taxproceedings. <\/td>\n<\/tr>\n
4.1<\/td>\nAssessment – Specific issues <\/td>\n<\/tr>\n
4.1.1 <\/td>\nEvidentiary value of an “admission” in the return of income. <\/td>\n<\/tr>\n
4.1.2 <\/td>\nNo estoppel in law against a party in a taxation matters. <\/td>\n<\/tr>\n
4.1.3 <\/td>\nNature of assessment proceedings is quasi-judicial in nature . <\/td>\n<\/tr>\n
4.1.4 <\/td>\nOpportunity given must be reasonable. <\/td>\n<\/tr>\n
4.1.5 <\/td>\nNo obligation to make maximum profits–Sale of goods below market price <\/td>\n<\/tr>\n
4.1.6<\/td>\nCommercial expediency – Businessman’s point of view <\/td>\n<\/tr>\n
4.1.7 <\/td>\nEvidentiary value of affidavit in assessment proceedings. <\/td>\n<\/tr>\n
a) <\/td>\nAffidavit – Meaning. <\/td>\n<\/tr>\n
b) <\/td>\nIncome -tax (Appellate Tribunal) Rules, 1963, R. 10. Filing of  an affidavit. <\/td>\n<\/tr>\n
c)         <\/td>\nIncome -tax Settlement Commission (Procedure) Rules, 1976. R. 8. Filing of an affidavit. <\/td>\n<\/tr>\n
d) <\/td>\nEffect of false affidavit. <\/td>\n<\/tr>\n
4.1.8 <\/td>\nEntries in books of account-S. 34 of the Indian Evidence, Act, 1872 <\/td>\n<\/tr>\n
4.1.9 <\/td>\nNoting in diary, loose paper, dumb paper. <\/td>\n<\/tr>\n
4.1.10 <\/td>\nRight to cross examination. <\/td>\n<\/tr>\n
4.1.11 <\/td>\nS. 131 : Duty of AO to enforce of witness- Civil Procedure Code, 1908, O. XVI, R. 10. <\/td>\n<\/tr>\n
4.1.12 <\/td>\nCommission for examination of witness, etc. <\/td>\n<\/tr>\n
4.1.13 <\/td>\nWitness does not have right to be represented by counsel when his statement is recorded. <\/td>\n<\/tr>\n
4.1.14 <\/td>\nS. 131 : Income-tax authorities – Powers – Discovery – Summons <\/td>\n<\/tr>\n
4.1.15 <\/td>\nS. 282:<\/strong>Service of notice. <\/td>\n<\/tr>\n
4.1.16 <\/td>\nS.69 of the Income -tax Act and S. 110 of the Indian Evidence Act, 1872. <\/td>\n<\/tr>\n
4.1.17 <\/td>\nS.69: Unexplained investment -AIR information. <\/strong><\/td>\n<\/tr>\n
4.1.18 <\/td>\nPresumption- S.292C-Favour. <\/td>\n<\/tr>\n
4.1.19 <\/td>\nPresumption – S.292C- Against. <\/td>\n<\/tr>\n
4.1.20 <\/td>\nTape -recorded conversation. <\/td>\n<\/tr>\n
4.1.21 <\/td>\nRe-assessment- Procedure to be followed when the notice u\/s 148 is received. <\/td>\n<\/tr>\n
4.1.22 <\/td>\nSearch and seizure. <\/td>\n<\/tr>\n
4.1.23 <\/td>\nSurvey – Addition cannot be made only on the basis of statement. <\/td>\n<\/tr>\n
4.1.24 <\/td>\n133A. Survey- Addition based on the statement is held to be justified. <\/td>\n<\/tr>\n
4.2.<\/td>\nSuspicious transactions in shares (Penny Stocks).<\/td>\n<\/tr>\n
4.2.1<\/strong>
\n 4.2.2<\/td>\n		Broad principles-Addition as cash credits is deleted.<\/strong>
\n Addition as Cash credits is held to be justified.<\/td>\n<\/tr>\n
4.2.3 <\/td>\nShell companies–Failure to produce lenders – Addition is  held to be justified. <\/td>\n<\/tr>\n
4.2.4 <\/td>\nRatio of judgement to be applied. <\/td>\n<\/tr>\n
4.2.5 <\/td>\nShare capital -Addition  is deleted as cash credits. <\/td>\n<\/tr>\n
4.2.6<\/td>\nShare capital – Addition is confirmed as Cash credits <\/td>\n<\/tr>\n
4.2.7 <\/td>\nRecent developments. <\/td>\n<\/tr>\n
4.2.8 <\/td>\nShare capital -Reassessment-Favour <\/td>\n<\/tr>\n
4.2.9<\/strong> <\/td>\nShare capital- Reassessment – Against  <\/strong> <\/td>\n<\/tr>\n
4.2.10 <\/td>\nFurther information on Penny Stock <\/td>\n<\/tr>\n
4.3.1 <\/td>\nConcealmentPenalty-S.271(1)(c) <\/td>\n<\/tr>\n
4.3.2 <\/td>\nSurrender of income- Concealment penalty.  <\/td>\n<\/tr>\n
4.3.3 <\/td>\nRevised return- Levy of penalty is held to be justified. <\/td>\n<\/tr>\n
4.3.4 <\/td>\nSpecifying charge- Concealment penalty <\/td>\n<\/tr>\n
4.3.5 <\/td>\nQuantum confirmed – Levy of penalty is not justified. <\/td>\n<\/tr>\n
4.4. <\/td>\nOffences and prosecutions. <\/td>\n<\/tr>\n
4.4.1 <\/td>\nCriminal procedure Code, 1973 <\/td>\n<\/tr>\n
4.4.2 <\/td>\nEconomic offences–No limitation is provided for initiation of proceedings <\/td>\n<\/tr>\n
4.4.3 <\/td>\nApproach of Courts to Economic Offences Dealing with S. 135 and 111 of the Customs Act. <\/td>\n<\/tr>\n
4.4.5 <\/td>\nProcedure followed by the department while launching the prosecution. <\/td>\n<\/tr>\n
4.4.6 <\/td>\nCan prosecution be initiated during the pendency and before the completion of assessment or during the pendency of Appeal before the appellate authority? <\/td>\n<\/tr>\n
4.4.7 <\/td>\nFinding of the Appellate Tribunal <\/td>\n<\/tr>\n
4.4.8 <\/td>\nGuidelines F.No.285 \/160\/90 -IT (Inv) dt. 14-05 1996 <\/td>\n<\/tr>\n
4.4.9 <\/td>\nPenalty  & Prosecutions <\/td>\n<\/tr>\n
4.4.10
\n 4.4.11 <\/td>\n		S. 273A. Waiver of penalties.S.279
\n Abetment – Liability of chartered Accountant. <\/td>\n<\/tr>\n
4.4.12<\/td>\nSettlement Commission<\/td>\n<\/tr>\n
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4.5.<\/p>\n<\/td>\n

Check list-  Practical guide – Representation before the Assessing Officer ,Commissioner (Appeals) and Appellate Tribunal. Tax professionals and assesses.  <\/td>\n<\/tr>\n
4.6.<\/td>\nQuestions and answers<\/a><\/td>\n<\/tr>\n<\/table>\n

RULE OF EVIDENCE:
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