Year: 2009

In M/s Prasad Productions Ltd, a Special Bench, Chennai, has been constituted to hear the following question: “Whether for the purposes of sections 201(1) and 201(1A), when an assessee responsible for making payment to a Non-resident, has not applied to the Assessing Officer u/s 195(2) for deduction of tax at a lower or Nil rate of tax, he is under statutory obligation to deduct tax at source computed on the entire payment to the Non-resident treating the same as income chargeable to tax, in the light of decision of the Apex Court in the case of Transmission Corporation of A.P. Ltd. v. CIT(239 ITR 587)?” The matter was heard by the Bench compromising Hon’ble Shri P P Parikh, Shri N Barathvaja Sankar and Shri Hari Om Maratha on November 3, 2009. In view of the judgement of the Karnataka High Court in Samsung Electronics, the matter has been refixed for hearing on January 27, 2010.

A Special Bench in the case of M/s Times Guaranty Ltd has been constituted to decide the following question: “On the facts and circumstances of the case, whether the unabsorbed depreciation relating to A.Y. 1997-1998 to 1999-2000 is to be dealt with in accordance with the Provisions of Section 32(2) as applicable for A.Y. 1997-1998 to 1999-2000 as claimed by the revenue or the same has to be dealt with in accordance with the said provisions as applicable to A. Y. 2003-04 and 04-05 as claimed by the Assessed”

For past sometime the Board has been concerned about the need for improving general quality of scrutiny assessments on a sustainable basis. In this connection, reference is invited to Board’s instruction No. 2/2006 dated 27.04.2006 which required monitoring of scrutiny assessments by Range Heads under the powers available to them under section 144A of Income tax Act. Instructions have also been issued from time to time for strengthening the machinery for review of assessments and inspection of assessment charges. However, it is felt that there is significant scope for improving the quality of scrutiny system. The matter came up for discussion during 25th Annual Conference of Chief Commissioner of Income tax held in August 2009. A presentation was made by CCIT Chandigarh outlining a scheme for improving quality assessments implemented in NWR Region. After taking into account various suggestions, it was decided to devise a similar scheme with appropriate flexibility for country-wide implementation.

The Hon’ble Shri Justice V.C. DAGA & The Hon’ble Shri Justice K.K. TATED Court Room No. 53 Writ Petitions arising out of Customs, Excise, Sales Tax, Income Tax and all other Revenue matters under the Central Acts for Admission and …

Constitution of Tax Bench in the Bombay High Court (Jan 2010) Read More »

The Income-tax (13th Amendment) Rules, 2009 was notified on 18th December 2009. It substitutes Rule 3 of the Income-tax Rules, 1962. The text of the Notification can be downloaded here.

Hon’ble Shri R.V. Easwar, Judicial Member, has been elevated as Senior Vice President and posted to the Mumbai Bench of the Tribunal with effect from 25th November 2009. Shri. Easwar has qualified as LLM and ACA and practised as a lawyer from 1975 to 1991 in Chennai. After his elevation to the Bench in 1991, he has served the Kolkota, Mumbai, Delhi and Bangalore Benches. He has been a party to several landmark judgements such as Mid East Portfolio 87 ITD 537 (Mum) (SB), Lalsons Enterprises 89 ITD 26 (Del) (SB) and Kanel Oil (Ahd) (TM).

Considering the facts and circumstances of the class of cases of TPAs and insurance companies, the Board has decided that no proceedings u/s 201 may be initiated after the expiry of six years from the end of financial year in which such payment have been made without deducting tax at source etc by the TPAs. The Board is also of the view that tax demand arising out of Section 201(1) in situations arising above, may not be enforced if the deductor(TPA) satisfies the officer in charge of TDS that the relevant taxes have been paid by the deductee assessee (hospitals etc.). A certificate from the auditor of the deductee assessee stating that the tax and interest due from deductee assessee has been paid for the assessment year concerned would be sufficient compliance for the above purpose. However, this will not alter the liability to charge interest under Section 201 (1 A) of the Income Tax Act till payment of taxes by the deductee assessee or liability for penalty under Section 271C of the Income Tax Act as the case may be.

Income-tax (Dispute Resolution Panel) Rules, 2009 Notification No. 84/2009[S.O. 2958(E)/F.No. 142/22/2009-TPL], dated 20-11-2009 In exercise of the powers conferred by sub-section (14) of section 144C of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes makes …

Income-tax (Dispute Resolution Panel) Rules, 2009 Read More »

A list of Special Bench matters pending in the Mumbai Bench of the Tribunal as of 1.11.2009 is available for download. The list of All – India Special Bench matters is available here.

The International Tax Conference will be hosted by the Asia-Oceania Tax Consultants’ Association (AOTCA) which is the international body for tax professionals in the Asia-Oceania region – in association with the All India Federation of Tax Practitioners (A1FTP). This Conference …