S. 151 : Reassessment-Sanction for issue of notice-Approval under section 151 recording “Yes, I am satisfied and may be reopened”-Mechanical approval-Without independent satisfaction-Reassessment invalid.[S. 147, 148]
S. 151 : Reassessment-Sanction for issue of notice-Approval under section 151 recording “Yes, I am satisfied and may be reopened”-Mechanical approval-Without independent satisfaction-Reassessment invalid.[S. 147, 148]
S. 36(1)(viia) :Bad debt-Provision for bad and doubtful debts-Schedule bank-Reserve and surplus account cannot be considered as provision for the purpose of allowing deduction-The amount credited to bad and doubtful reserve is not allowable as a deduction.
S. 12AB: Procedure for fresh registration-Specified violation-Religious trust-Objects were confined to the benefit of members of a particular community-Not for the benefit of the public at large-Not entitled to registration.[S.12AB(4)]
S. 245 : Refund-Set off of refunds against tax remaining payable-Adjustment order passed by Assessing Officer was in gross violation of principles of natural justice and fair play-The adjustment was to quashed and revenue was directed to deposit adjusted amount in Court. [Art. 226]
S. 271(1)(c) : Penalty-Concealment-Transfer pricing-Advance Pricing Agreement (APA)-Penalty for concealment-Timely filing of modified return under section 92CD negates any event of concealment; penalty under section 271(1)(c) is prima facie without jurisdiction.[S.92CD]
Securities and Exchange Board of India Act, 1992.
S. 28A : Securities, Markets and Exchanges-Offences and Penalties – Recovery of tax – Attachment and sale of property – Auction sale-Recovery of penalty by modes such as attachment and sale of properties Auction sale of property by Securities and Exchange Board of India for recovery of penalty-Failure by successful bidder to pay balance of consideration Whether forfeiture of entire earnest money deposit justified Provisions under income-tax law to apply with necessary modifications-Automatic forfeiture of entire deposit not contemplated Provisions giving Tax Recovery Officer discretion to order forfeiture of entire deposit or limit it to extent of actual loss incurred by authorities discretion Securities and Exchange Board of India Act, 1992 – Attachment of property-Recovery of Tax/Arrears of Tax/Crown Debt/Debt owed to State- Has discretion to order forfeiture of entire deposit or limit it to extent of actual loss incurred by authorities discretion- Recovery of penalty-Auction sale of property-Failure by successful bidder co pay balance of consideration-Default In payment by purchaser within period specified Provision for forfeiture of deposit to secured creditor and resale of property with defaulting purchaser forfeiting all claims to property or Co any part of sum for which it may be subsequently sold No discretion with authorities as under income-tax law to quantify actual loss or damages incurred-Security Interest (Enforcement) Rules, 2002 B 9/5. [Income Tax Act, 1961-Sch. II, R. 58-Civil Procedure Code, 1908, Or. 21 R. 86, Indian Contract Act, 1872, S.73, 74]
Expenditure Tax Act, 1987.
S. 11:Reassessment- Expenditure-tax-Reassessment -No limitation was prescribed – Not barred by limitation- Appeal-High Court- Court cannot reappreciate evidence to record a different finding of fact even if another view possible on basis of material on record- SLP dismissed.[S. 8, 9, 11(1)(a), 11(1)b), Art. 136]
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
S. 43 : Penalty for failure to furnish return of income or furnish inaccurate particulars of an asset ( Including financial interest in any entity ) outside India- Non-disclosure of foreign assets – Use of word “may” in section 43 is directory and not mandatory – Assessing Officer has discretion to impose or waive penalty depending on facts – Mere failure to disclose foreign investment does not automatically warrant penalty – Interpretation of statutes . [S. 46(3)]
S. 263 : Commissioner-Revision of orders prejudicial to revenue-
book profits-Prior-period expenses-Hyper-technical Revision order directing addition of such amount in book profits, unsustainable-Order of Tribunal was set aside. [S. 115JA,260A]
Black Money (Undisclosed Foreign Income and Assets) Act , 2015 .
S. 10(3) :Assessment – Charge of tax Undisclosed foreign asset – Asset ceased before 1.7.2015 – Not taxable – Penalty – Non-disclosure of asset – Ceased before AY 2012–13 -Penalty not leviable. – Doctrine of election/approbate and reprobate- Once proceedings under the IT Act are consciously chosen, the Revenue cannot subsequently invoke BMA. [ S. 2(11), 3(1) , 41, 43 ,BMA Valuation Rule, 3, Income tax Act , 1961 , S. 90, 131(IA), 132, 132(4) , 132(4A) , 292C ]