Recent posts

#11

Discussion / Bogus LTCG Reopening

Last post by rajul5234 - July 10, 2021, 10:38:34 AM

Gujarat H C in SCA 17756/2018 Dt. 11/6/21 in case of Priti Paras Savla quashed reopning procedings beyond 4 years from end of the year in a scritized assessment as subject matter of reasons of reopning was processed for exempted LTCG alleged to be bogus.

RE K Patel

#12

Discussion / Re: car lifetime tax

Last post by Alex9 - March 12, 2021, 12:48:22 PM

Please give your opinion with supporting case law   on the issue as to whether car lifetime tax,one time payment, is revenue expenditure. Sec.43B  proivdes that any tax,duty  and fee are  deductible in the year of payment. Whether the above said tax is enduring nature and needs to be capitalised  in the face of Sec.43B

An early response is welcome

This section in short, deals with certain types of payments and directs the taxpayer to claim such payments as an expense in the same assessment year when it was actually paid and not in the year in which the liability to pay such sum was incurred.

For example, Mr. Ram, owner of a logistics firm, has purchased a motorbike for rendering the courier services for his firm in August 2017. This purchase can be labeled as an actual expense/payment and pertains to the month of March 2017. For this, Mr. Ram can claim a deduction for the year ending March 2017 itself by showing a proof of this while filing his return in September 2017. If Mr. Ram pays this amount in October 2017, this deduction will be available for the year ending March 2018.

When filing the income tax returns, Mr. Ram can show the proof of making such payment and claim the deduction in the same year (in which the amount was accrued).

#13

Discussion / Re: HD NOTES DEPOSITED ON DIFF...

Last post by vsaiyar - March 12, 2021, 09:15:10 AM

The issue raised was : 1) Cash withdrawn from bank Rs.35,00,000  2) HD notes deposited on various dates later  3) leading to presumption he had sufficient cash on hand.  The case laws referred to is with reference to cash deposits which is not substantiated as to the source.  Here the issue is not merely cash deposit, here deposit is of High Denomination notes on various dates

#14

Discussion / Interesting Complaint of DR in...

Last post by Ashish kumar - March 11, 2021, 02:25:34 PM

I have come across very interesting episode of complaint by a Sr DR posted in G Bench Delhi, namely Shri Prakash Dubey. His complaint is that he dont receive any document via mail, sent by the counsels of assessee at the officials mail id given to them for virtual hearing and hence he is able to grab an adjournment in every case. When the I inquired from the ITO-ITAT- G Bench- She told that he is telling lie, she confirmed that she is delivering each and every document to him. Now only god knows that who is speaking truth, but the fact of the matter is that assessees are suffering due the adjournments. So my appeal to CBDT that enquiries may be conducted in this issue and necessary action of measure penalty should be taken against the culprit. Whoever is culprit should be punished with measure penalty. I am also sending a complaint to the chairman CBDT and Member Vigilance so that necessary inquiries would be done in this matter and  action as per vigilance laws may be taken against the real culprit. Further the members also adjourning cases conveniently ignoring the submissions of the counsel that they have mailed the documents. Some times counsels are filing the screen shot of the mail delivered. Now question arise as to why an innocent assessee would suffer due to this nuisance, as there is no fault of them. Further if the counsels are telling lie then action should be taken against them as per law, by the members.However the members should not act as mock spectators. It is injustice with poor assessees. 

#15

Discussion / Re: HD NOTES DEPOSITED ON DIFF...

Last post by Ashish kumar - March 11, 2021, 02:16:00 PM

ITO Vs Pawan Kumar 153 ITD 448(Del) have similar facts as of yours Mr Parsad.
The next decision is Gurpreet Singh Vs ITO 157 ITD 262(Chd)
Jaya Aggarwal Vs ITO-254 Taxman 398 (Del)

I hope that the above are enough

#16

Discussion / Re: HD NOTES DEPOSITED ON DIFF...

Last post by vsaiyar - March 10, 2021, 10:31:15 PM

It does appear a strange behaviour.

#17

Discussion / Re: Income tax question? How i...

Last post by vsaiyar - March 10, 2021, 10:28:54 PM

The question raised is "how  such evation  escapes attention of the Income-tax department" The answer is not the statutory obligation of the citizen, nor consequential penalty and interest on detection  The Income-tax department is not equipped to detect such small evasions, nor all emloyees could be said to be deligent in their work nor many of the Officers have judicious mind.  As the PM often says the Babus have feudalistic outlook and a good number of them are greedy and selfish.  They cannot put the nation first.  The department should come out with innovative ways to plug evasion and transform the society into a tax comlying community.

#18

Discussion / FACELESS ASSESSMENT

Last post by vsaiyar - 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.

#19

Discussion / Working of DRs in ITAT

Last post by Ashish kumar - March 04, 2021, 07:41:16 PM

I have often heard from so many DRs that ITAT is a punishment posting for them for the reasons best known to them. I would not comment on this observation. Be that as it may be, when I joined ITAT the DRs who were working here were very responsible, understanding their duties towards court, were not arguing any thing nonsense. But now in these days few DRs particularly at Delhi are useless persons they always appear in a very casual manner, wont read their files and argue the matters left right center without any basis. I am also working for Central Govt since last 15 years, I have seen their that Govt counsels wont contest those cases which are covered by the judgments. However in the ITAT I have seen that DRs are arguing just for the sake of arguments without appreciating the verdicts of Higher Forum , I have made a list of such DRs and will submit to the Chairman CBDT and Revenue Secretary, along with the copies of judgments and ask for some action against them under the relevant vigilance rules & regulations. Be that as it may be dozens of my relatives are also working in  Income Tax department I will discuss with them also how vigilance action should be initiated against such useless persons and why Govt will not give them Compulsory retirement under the provisions of section 56 of the Prevention of corruption act. I will not name here, though I can. But i will not name otherwise they would be cautioned. But the point is that why they waste time of the court. Why they wont respect the precedents of higher courts is an issue which requires consideration at higher level. In fact the ITAT members should impose cost on them directly deductible from their salaries, if they wont concede a case which is covered by the Higher Forum. With this I would end here and hope that legal lumanaries would support my views. 

#20

Discussion / A Bedi at every Important Stat...

Last post by Ashish kumar - February 01, 2021, 11:41:14 AM

It has been learned by me that every important station a UBS BEDI type member is kept by the chairman so that things would remain under control or may be for some other ulterior reason, but let me tell you one thing that this type of administration is highly critcised by the international community, who want to provide FDI but wont invest due to these type of reasons so Law Ministry has to see this and do something as early as possible