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#11
Discussion / validity of notices u/s 148
Last post by satyanveshi - April 07, 2022, 10:11:37 AMThe above notification clearly says the notice u/s 148 should be issued in the faceless manner through automated allocation. But the notices were found to be issued by AOs without being followed the procedure of automated allocation. Under these circumstances whether the said notice issued by normal AOs without following the procedure of automatic allocation and without following faceless procedure are valid in law.
It is observed that incometax department is issuing notices u/s 148 without following the prescribed procedure u/s 149 especially for the period more than 3 years but less than 10 years which reads as per enclosure.
which means the AO should have in his possession the books of accounts or documents or evidence but it is observed that basing on the information flagged by risk management strategy the department started issuing notices but they don't have books of accounts of documents or evidence in their possession. Whether anybody challenged the notices on this ground.
It is observed that incometax department is issuing notices u/s 148 without following the prescribed procedure u/s 149 especially for the period more than 3 years but less than 10 years which reads as per enclosure.
which means the AO should have in his possession the books of accounts or documents or evidence but it is observed that basing on the information flagged by risk management strategy the department started issuing notices but they don't have books of accounts of documents or evidence in their possession. Whether anybody challenged the notices on this ground.
#12
Discussion / validity of notices u/s 148A
Last post by satyanveshi - April 07, 2022, 07:06:38 AMIt is observed that public are receiving large number of notices issued u/s 148A of the IT act asking clarifications on various financial transactions entered into by the assessees before the department issuing the reopening notices u/s 148. In this connection, it is observed it is observed that the new section 148A which has come into existence with effect from 01.04.2021 and this section was governed by sec.151A. Further, the new section ie section 151A is not activated till a notification is issued on 29.03.2022. Since, sec 151A is not activated till 29.03.2022 automatically the new section 148A is also not activated till 151A was activated ie. till 29.03.3022. Since the new section u/s 148A is dormant till 29.03.2022, whether the department can issue notices under a dormant section which was not activated till a notification is issued on 29.03.2022. accordingly, the notices issued u/s 148A before 29.03.3022 are valid in the eyes of law.
secondly, on 29.03.2022, a notification is issued u/s 151A which is enclosed ...
The above notification clearly says the notice u/s 148 should be issued in the faceless manner through automated allocation. But the notices were found to be issued by AOs without being followed the procedure of automated allocation. Under these circumstances whether the said notice issued by normal AOs without following the procedure of automatic allocation and without following faceless procedure are valid in law.
secondly, on 29.03.2022, a notification is issued u/s 151A which is enclosed ...
The above notification clearly says the notice u/s 148 should be issued in the faceless manner through automated allocation. But the notices were found to be issued by AOs without being followed the procedure of automated allocation. Under these circumstances whether the said notice issued by normal AOs without following the procedure of automatic allocation and without following faceless procedure are valid in law.
#13
Discussion / Re: Ajay Gandhi Judgment of Ap...
Last post by oliver07 - December 29, 2021, 03:08:08 PMThe President, ITAT shall problem orders concerning posting and switch of the contributors after approval of the Ministry indicating therein that they've been issued after approval of the equipped authority. Reproduction of all such orders shall always be advocated the Ministry. The President of India is similarly thrilled to determine that the Ministry might also problem orders of posting and transfers of Members while taking into consideration necessary
#14
Discussion / Re: Hearing of matters beyond ...
Last post by iamsteve0m - December 26, 2021, 01:01:56 AMIf you are facing sickness, you are entitled not to be automatically dismissed. ... they are unwell at least 30 minutes before they are due to start work,
#15
Discussion / Re: Bogus LTCG Reopening
Last post by rapheal21 - December 01, 2021, 10:11:10 PMAddition u/s 10(38) on alleged bogus Long Term Capital Gain (LTCG) deleted where no further verification made by AO except solely reliance on information from investigation wing.
ITAT held that the long-term capital gain on the sale of shares of M/s. Blue Circle Services Ltd. is not a bogus capital gain as the AO has solely relied on the report of the investigation/survey team and has not carried out any further verification on the basis of documents furnished by the assessee. Similarly, the position of long-term capital gain earned on the sale of shares of M/s. Gemstone Investment Ltd. of Rs.88,41,060/- is the same as the assessee has filed all the necessary evidence before the AO and AO has failed to carry out any further investigation to prove that the long term capital gain earned by the assessee is bogus and fictitious. Consequently, the appeal of the assessee succeeds on merit also.
ITAT held that the long-term capital gain on the sale of shares of M/s. Blue Circle Services Ltd. is not a bogus capital gain as the AO has solely relied on the report of the investigation/survey team and has not carried out any further verification on the basis of documents furnished by the assessee. Similarly, the position of long-term capital gain earned on the sale of shares of M/s. Gemstone Investment Ltd. of Rs.88,41,060/- is the same as the assessee has filed all the necessary evidence before the AO and AO has failed to carry out any further investigation to prove that the long term capital gain earned by the assessee is bogus and fictitious. Consequently, the appeal of the assessee succeeds on merit also.
#16
Discussion / Re: A Bedi at every Important ...
Last post by kellymiller - October 18, 2021, 09:29:43 AMI had the same thought.
#17
Discussion / Re: Income tax question? How i...
Last post by etbandung - August 30, 2021, 04:25:55 PMif they have such a company structure base they will easily acknowledge by the tax service , if the person who teach stand alone than its gonna be hard for the government track the the money unless they client report of the service ,just like a solo tour guide atleast he have good english he could make easy money just by accompany the tourist every where
#18
Discussion / Bogus LTCG Reopening
Last post by rajul5234 - July 10, 2021, 10:38:34 AMGujarat 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
RE K Patel
#19
Discussion / Re: car lifetime tax
Last post by Alex9 - March 12, 2021, 12:48:22 PMQuote from: sai prasad on March 16, 2011, 09:41:21 AM
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).
#20
Discussion / Re: HD NOTES DEPOSITED ON DIFF...
Last post by vsaiyar - March 12, 2021, 09:15:10 AMThe 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