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Topics - vsaiyar

#1
Discussion / FACELESS ASSESSMENT
March 10, 2021, 10:18:43 PM
IS IT TRUE:
I have seen many notices sent by the department indicating the name of the faceless officer signing the notice.  I have also come across people discussing how the code number could be deciphered so as to find the location of the officer and his contact number.  Assessees are contacting them and getting their work done the way they want it.  If this is true then those who have access could still continue to bribeand cheat the government.  It will not be anymore faceless but a face now appears as a silhouette whose face could be easily found out.  Further people are getting indications for an online conference by the officer concerned.
#2
Discussion / Mumbai High Court decision
January 04, 2017, 08:15:16 PM
Dear Friends

The department seems to have filed an SLP in the matter of Indo French Chamber of Commerce and Industry.  The Officer has given 18600/13.  Can anyone provide me a copy of the Mumbai High Court judgement in DIT(E) v/s Indo French hamber of Commerce and Industry.  I will be grateful.
#3
Discussion / VALUE OF JEWELLERY FOR ids
September 26, 2016, 03:26:55 PM
The assessee had got the jewellery valued in 2008.  The assessee has not declared this in the return of income or wealth.  Can the value on 31st March 2008 be declared as undisclosed income under IDS 2016?
#4
Why even today notices are issued by the IT Office in Mumbay by post?  The office is supposed to be issuing notices online.  Why CBDT is quite on the issue.  The purpose of issue of notices and collecting the information online is with a view to avoid personal interface so that the corruption could be reduced.  What is the idea now?
#5
Discussion / TDS CREDIT
May 11, 2016, 10:34:50 PM
Discretionary Trust - Income distributed to the beneficiaries.  Tax deducted from the income of the trust.  The distributed income is taxable in the hands of the beneficiaries.  TDS in the name of the trust.  No taxable income shown in the name of trust.  Hence no credit to trust.  Since the TDS is in name of Trust no credit to the beneficiaries of the trust of the TDS.  In such circumstances how to get refund of the taxes paid by way of TDS.
#6
Discussion / capital gains
May 10, 2015, 09:06:03 AM
The object of section 54 is to give relief to an assessee who has replaced his existing residential house either by a new one or constructed a new house.  By merely making payment to a builder pursuant to an agreement does not amount to purchase of new residential house.  The builder may or may not deliver the house to the assessee depending upon various circumstances.  The decisions of the courts though mostly in favour of the assessee do not appear to be correct?
#7
Discussion / CAG report on CAs
December 28, 2014, 02:00:58 PM
December, 25th 2014
Coming down heavily on chartered accountants hired by the income tax department, a CAG report on Friday said their failure to submit correct tax information resulted in levying of lower taxes by as much as Rs 2,813.11 crore in 367 cases surveyed.
"We found cases where the CAs failed to report full and correct information in 367 cases leading to short levy of taxes of Rs 2,813.11 crore and where the Assessment Officers failed to utilise the information available in 102 reports or certificates submitted to them leading to short levy of taxes of Rs 1,310.05 crore," said the report of the official auditor.
"We also found in another 616 cases where CAs committed mistakes viz in allowance of exemption or deductions, charging of tax on book profit under Section 115JB, adoption of arm's length price and reporting on cash payments exceeding Rs 20,000 per day,"
The above comments by the CAG is not sufficient to correct the situation.  We should find the relationship of the selected CAs and the Higherups in the IT Department.  Like the appointments of Retainers in high Courts by the Department, herealso there is foulplay.  There is reluctance on the part of the CBDT and others to take action against erring Officials and hence the personnel administration of the IT Department should be entrusted to some Officials/authorities outside the Department.
#8
Discussion / 54EC
June 24, 2014, 11:29:17 AM
The many of the ITAT benches has held that Limit of Investment in Section 54EC ia applicable for each financial year.  Can any one tell me whether the Department has filed appeals against the decision of the ITAT in following cases:

ShriVivekJairazbhoy vs. Dy Commissioner of Income Tax (International Taxation)(ITAT Bangalore bench ITA no. 236/Bang/2012)
2012] 20 taxmann.com 75 (Ahd.) IN THE ITAT AHMEDABAD BENCH 'C'Aspi Ginwala, Shree Ram Engg. & Mfg. Industries v. Assistant Commissioner of Income tax, Circle-5, Baroda
ITAT CHENNAI BENCH 'D' Smt. Sriram Indubal versus Income-tax Officer, Business Ward IT Appeal NO. 1950 (MDS.) OF 2012
ITAT PANAJI BENCH Income-tax Officer, Ward - 2, Margao, Goa v.Ms. Rania Faleiro IT Appeal No. 9 (PANAJI) of 2013
Vivek Jairazbhoy vs. DCIT (ITAT Bangalore)
#9
Discussion / acknowledgement under limitation actg
February 02, 2014, 11:31:35 AM
One party has supplied goods to an OMS party.  The OMS party disputes amounts due.  However after two years the said OMS party issues C form.  Whether this will amount to acknowledtement of debt.
#10
Pursuant to the Delhi High Court judgement in "Court on its own" many circulars and instructions have been issued by the Board.  Unfortunately the instrructions and circulars do not percolate to the level of Assessing Officers and even if it reaches the Officers they do not implement it without incentives.  There appears to be lack of leadership in the senior officers and the juniors are not holden to them.  In the result one may make any number of rectification applications.  The applications are received in tapal, and then thrown into a dump of the concerned officer.  No rectification is maintained nor the applications are disposed off by the Officerwithin the stipulated time.  One may complain to the Commissioner, but to no avail instead it complicates the matter. 

Though the office timing is between 9.30 to 6.00 no one comes to the office except the Daftar Band before 11.30 and no one is available in the office during 1.00 to 2.30 allegedly the lunch time.  There is no one in the office after 5.00 p.m.  This is how the Department works and there is no one to enforce discipline.  There is total failure of governance.
#11
Discussion / REJECTING THE RATIO OF REGIONAL COURT
February 21, 2013, 08:49:06 PM
It is seen that many assessing officers reject the ratio laid down by the jurisdictional high courts on the ground that the department did not accept that decision and that second appeal is not preferred as the revenue effect was low.  There is no way one could ascertain whether the statement of the AO is genuine or it is only a pretense.  Is there any judgement of any court which discourages this type of practice by the assessing authorities?
#12
Discussion / change of trustees
December 19, 2012, 03:05:31 PM
A public charitable trust has 5 trustees.  The trust is in existence for more than 15 years.  Some with a lot of money approaches the trustees who have become aged, that they retire from the office of the Trustees in favour of the five active and young trustees (referred to as Group) so that the trust could function more effectively .  As an inducement to the trustees the Group offers to pay them a particular some.  An agreement is entered into to this effect.  None of the Trustees were paid any remuneration at any time.
The question is whether the amount received by the outgoing trustees is taxable in their hands as: 
1.    As Capital Gains
2.   Gift
3.   Windfall

Whether the amount is  taxable in their hands at all?
#13
Discussion / GROSS TOTAL INCOME
May 30, 2012, 01:10:58 PM
Nowhere in the Income-tax Act this is defined except in 80B(5).  This definition is applicable only to Chapter VIA.  In my view the meaning of the term "GROSS TOTAL INCOME" is to be understood to cover all the income of the assessee including income falling within section 10, 10A and 10B.  Could anyone explain to me whether I am wrong in my assumption and if so why?
#14
Discussion / SATISFACTION
May 28, 2012, 07:49:32 PM
In section 68, section 271 and Sec.14A etc. speaks of satisfaction of the Assessing Officer.  There are no standards or measures to determine when the AO could be said to be satisfied before invoking those provisions.  Can the satisfaction vary from Officer to Officer?  Since the AO is put in higher pedestal than the ordinary citizens an ordinary citizen cannot apply his own standards.  Can anyone suggest to me what are the prerequisites to decide whether there is satisfaction of the AO?
#15
Discussion / INITIAL ONUS UNDER SEC.68
April 19, 2012, 10:36:57 AM
Courts and Tribunals have expressed themselves what is the initial proof required to be submitted to the assessing autority.  It is not sufficient to file a confirmation from the lender or crediltor or for that matter furnishing of PAN and bank account details.  What details the courts expect the assessees to maintain to discharge the initial onus?  I refer to the decision of the Kerala high Court in [2012] 20 taxmann.com 402 (Kerala) Whether where assessee only produced confirmation letters from creditors without any further material regarding identity, status or capacity of creditors or even dates on which impugned loans were given, addition made by Assessing Officer could not be faulted with. 
#16
Discussion / RECTIFICATION OR APPEAL
April 16, 2012, 05:52:27 PM
THE RETURN FOR THE ASSESSMENT YEAR 2010-11 WAS FILED ON 30TH OCTOBER 2010.  THE ASSESSMENT FOR THE ASSESSMENT YEAR 2010-11 WAS COMPLETED UNDER SEC.143(1) ON 31ST JULY 2011.  THE ASSESSMENT FOR ASSESSMENT YEAR 2009-10 WAS COMPLETED ON 30TH NOVEMBER 2011 UNDER SEC.143(3)  TREATING CERTAIN LOSSES AS SPECULATION LOSS UNDER SEC.73 AND ALLOWED TO BE CARRIED FORWARD.  THERE IS PROFIT IN SHARE TRADING IN 2010-11 AND THE ASSESSEE SEEKS TO GET THE SET OFF IN 2010-11.  THE TIME LIMIT FOR REVISING THE RETURN FOR ASST. YEAR 2010-11 IS OVER NOR APPEAL COULD BE FILED SINCE THE TIME LIMIT IS OVER.  CAN THE ASSESSEE SEEK RECTIFICATION UNDER SEC.154 OR SHOULD HE SEEK REVISION SINCE THE ITO SUO MOTO NOT WILLING TO RECTIFY THE 143(1) ORDER.
#17
Before rejection of books of accounts the assessing Officer should point out specific defects in the books of accounts resulting in non verifiability of the book results.  Suppression  of sales, overstatement of purchases, inflation of expenses these are the modes used for falsification of accounts.  But these are not visible from the books but has to come from sources outside the books.  The question arises whether the books and averments of third parties could be used against the assessee.  The AO has to rely either on the books of accounts of the assessee or the books of the third party or reject both the books.  Could the AO use selectively the books of the third party?
#18
Discussion / religious activity - section 80G
April 14, 2012, 10:54:09 AM
conducting Bhagwat Katha is considered as a religious activity by the ITAT in [2012] 20 taxmann.com 221 (Jaipur - Trib.)  The serials Shree Krishna, Sampurna Ramayana etc. is considered as entertainment  What is the difference between Bhagwat Katha and these pictures/serials.  In olden days when electronic, or mechanical entertainments were not available people used to entertain themselves by Dances, Drama, Singing, Story telling etc.  Though these modes are not completly discontinued, and it continues in some form, could it be said religious.  Bhagwat Katha is telling the stories from Maha Bhagwat.  The participants attend these with piety and discipline.  When there is no religion called Hindu - Hindu is a sanskriti and culture exclusive to India how could it become religious.  I think the Courts need to address the issue instead of coming from assumptions.


#19
Discussion / addition as concealed income
April 05, 2012, 01:09:24 PM
The assessee maintained proper books of accounts.  The books were audited under sec.44ab.  Some parties from whom the assessee purchased goods came to be Surveyed and the party confessed that he is a name lender.  The said party issued bills, payments were made by cheques to that party.  The GP. was normal.  The surveyed party is assessed to tax.  It is learnt that the AO made completed the assessment of the surveyed party on the basis of materials available and no concession was shown to him for the confession.  It was argued by the assessee that the assessee discharged his primary onus - establishing the identity of the party, establlishing that the said party encashed the cheque which was an account payee cheque.  No opportunity for cross examination of the surveyed party was given to the assessee.  Can the averments of the surveyed party be used against the assessee on the ground that a) the assessee did not maintain stock data, b) it is for the assessee to prove the genuineness of the purchase etc.