{"id":8462,"date":"2016-12-10T15:13:03","date_gmt":"2016-12-10T09:43:03","guid":{"rendered":"http:\/\/www.itatonline.org\/info\/?p=8462"},"modified":"2016-12-10T15:13:03","modified_gmt":"2016-12-10T09:43:03","slug":"cbdt-circular-reg-reopening-us-147-of-past-assessments-due-to-increase-in-current-years-turnover","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/cbdt-circular-reg-reopening-us-147-of-past-assessments-due-to-increase-in-current-years-turnover\/","title":{"rendered":"CBDT Circular Reg Reopening U\/s 147 Of Past Assessments Due To Increase In Current Year&#8217;s Turnover"},"content":{"rendered":"<p>The CBDT has issued Circular No. 40\/2016 dated 9th December 2016 directing Assessing Officers not to reopen assessments of earlier years u\/s 147 of the Act merely because there is an increase in turnover of the present year because of the adoption by the assessee of digital means of payment. The CBDT has pointed out that such move would cause &#8220;<em>undue harassment<\/em>&#8221; to the taxpayers<\/p>\n<div class=\"journal2\"><a href=\"https:\/\/www.itatonline.org\/info\/cbdt-circular-reg-reopening-us-147-of-past-assessments-due-to-increase-in-current-years-turnover\/cbdt-circular-147-black-money-reopening\/\" rel=\"attachment wp-att-8463\">Click here to download Circular No. 40\/2016 dated 9th December 2016 issued by the CBDT<\/a><\/div>\n<hr>\n<blockquote><p>Circular No. 40\/2016<br \/>\nGovernment of India<br \/>\nMinistry of Finance<br \/>\nDepartment of Revenue (CBDT)<br \/>\nNorth Block, New Delhi, the 9th of December, 2016<\/p>\n<p>Subject: \u2013 Directions under section 119 of the Income-tax Act, 1961-regd.-<\/p>\n<p>Recent initiatives of the Government to curb the black economy in the country has encouraged people to shift towards digital mode of payment while making financial transactions. By adopting digital mode of payment, no financial transactions would remain undisclosed and consequently an enhanced turnover of business might get reflected in the books of accounts. Under the circumstances, an apprehension has been raised that increased turnover in the current year may lead to reopening of earlier years\u2019 cases involving lower turnover u\/s 147 of the Income-tax Act, 1961 (\u2018Act\u2019) by the Assessing Officer causing undue harassment to tax payers.<\/p>\n<p>2. It is hereby clarified that reopening of cases u\/s 147 of the Act is feasible only when the Assessing Officer \u201chas reason to believe that any income chargeable to tax has escaped assessment for any assessment year\u201d and not merely on the basis of any reason to suspect. Mere increase in turnover, because of use of digital means of payment or otherwise, in a particular year cannot be a sole reason to believe that income has escaped assessment in earlier years. Hence, Assessing Officers are advised not to reopen past assessments in cases merely on the ground that the current year\u2019s turnover has increased.<\/p>\n<p>3. The above may be brought to the notice of all for necessary and strict compliance.<\/p>\n<p>4. Hindi Version to follow.<br \/>\n(Rohit Garg)<br \/>\nDirector ITA.II, CBDT<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The CBDT has issued Circular No. 40\/2016 dated 9th December 2016 directing Assessing Officers not to reopen assessments of earlier years u\/s 147 of the Act merely because there is an increase in turnover of the present year because of the adoption by the assessee of digital means of payment. The CBDT has pointed out that such move would cause &#8220;<em>undue harassment<\/em>&#8221; to the taxpayers<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/cbdt-circular-reg-reopening-us-147-of-past-assessments-due-to-increase-in-current-years-turnover\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-8462","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/8462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=8462"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/8462\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=8462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=8462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=8462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}