Black Money (Undisclosed Foreign Income and Assets) and Imposition of tax Act, 2015
S.10(1): Assessment – Penalty – Taking an overall view of the matter, the respondents could proceed pursuant to the notices dated December 20, 2017. However, no coercive measures could be taken against the assessees if the occasion so arose. [ S. 4(3), 59, Income -tax Act , 1961 S.131 ,148 ]
S. 271(1)(c) : Penalty – Concealment- — Furnishing inaccurate particulars of income — Sufficient interest-free funds available with Assessee — Interest expenses not disallowable – Mere wrong claim does not tantamount to furnishing of inaccurate particulars of income or concealment of income — Penalty not leviable in such cases.
S.234E : Fee – Default in furnishing the statements – Provision prospective — No demand could be made for AYs prior to 1-6-2015.[ S.200A(1) ( c ) ]
S. 206AA : Requirement to furnish Permanent Account Number (PAN) – Provision for deduction at higher rate where recipient fails to provide PAN — Provision cannot override beneficial provisions of DTAAs — Assessee not liable to deduct tax at higher rates in spite of failure by non-resident to furnish PAN [ S.90(2)]
S. 201 : Deduction at source – Failure to deduct or pay – Failure to deduct tax from interest paid on loan — Whether recipient filed its return and declared interest amount in its income and paid due taxes — Assessee to prove before AO — Issue restored to AO to prove this contention. [ S. 194A ,201(IA) ]
S. 148 : Reassessment – Notice — Validity — Amalgamation of companies — Effect — Amalgamating company ceases to exist — Factum of amalgamation brought to notice of AO — Reassessment proceedings against amalgamating company — Not valid [ S.147 ]
S. 145A : Accounting — Valuation of stock — Change in method — Assessee changing method of valuation – Cost or market value whichever is lower method — Changed method consistent with mandatory AS 2 — No need to apply changed method to opening stock of finished goods — Changed method valuation to be applied to all components of inventory
S. 80JJAA : Employment of new workmen —Provisions as existing before 1-4-2016 applicable to earlier years — AO to apply provisions as applicable to each of the earlier years
S. 80P: Co-operative Society —Interest earned from scheduled bank — Not deductible — Net interest from deposits with scheduled bank to be excluded from deduction -Interest earned from Co-operative bank or society— Deduction allowable on net interest- Receipt by society from its members towards form fee — Attributable to and arising from Assessee’s day-to-day activities — Deductible-Standard deduction allowable . [ S.80P(2)(a), 80P(2)(c), 80P(2) (d) ]
S. 69 : Unexplained investments – Undisclosed cash — Money changer — Business requirements — Cash bundles carrying tag of another bank — Common practice — Cash books written day-to-day basis but in practice always a time gap between book entries — No defect pointed out by Assessing Officer in books of account of assessee — addition on basis of suspicion and surmises not justified.