Summons should not be used for harassing top management
F No. 208/122/89-CX.6
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Excise & Customs, New Delhi
Ministry of Finance
(Department of Revenue)
Central Board of Excise & Customs, New Delhi
Dated: October 13, 1989
Complaints have been received from the trade that in some of the Collectorates summons under Section 14 of the Central Excises and Salt Act, 1944 are being issued to the Managing Directors and other high officers with a view to enforce recovery of dues which are under dispute. Action under this section is to be taken only as a last resort in cases where assessees are not coopperating or investigations are to be completed expeditiously. This section should not be used for harassing the top management for forcing them to pay up demands which are disputed by them. For recovery of demands normal procedure under the law should be followed.
If any instance of issue of summons to Managing Directors and other Directors without justification is noticed, a serious view will be taken by the Board. Collectors will be held personally responsible for enforcing these instructions in their charges.
PFA
Mere cash deposit of above 10 lakhs in bank account doesn't indicate that income has escaped assessment, says ITAT
January 21, 2015[2015] 53 taxmann.com 366 (Delhi - Trib.)
IT: The assessee had deposited cash in excess of Rs 10 lakhs in his saving bank account but he had not filed return of income. The AO reopened the assessment of assessee, as he had reason to believe that there was an escapement of income of Rs 10 lakhs. The Tribunal held that the AO proceeded on the fallacious assumption that bank deposits constituted undisclosed income and overlooked fact that the source of deposit need not necessarily be income of the assessee
Facts:
| (a) | The assessee had deposited Rs 10 lakhs (approx) in his saving bank account but no return of income was filed by him. The AO reopened the assessment of assessee, as he had reason to believe that there was an escapement of income of Rs 10 lakhs on part of assessee. | |
| (b) | The instant appeal was filed against validity of reassessment proceedings. |
The Tribunal held in favour of assessee as under:
| (1) | At the stage of recording the reasons for reopening the assessment, the formation of prima facie belief that an income has escaped the assessment is necessary. However, it is also necessary that there must be something which indicates, even if not establishes, the escapement of income from assessment. | |
| (2) | Merely because some further investigation had not been carried out, which, could have led to detection to an income escaping assessment could not be a reason enough to hold the view that income had escaped assessment. | |
| (3) | In the instant case, merely the fact that deposits have been made in a bank account do not indicate that these deposits constitute an income which had escaped assessment. | |
| (4) | AO proceeded on the fallacious assumption that bank deposits constituted undisclosed income and overlooked the fact that the sources of deposit need not necessarily be income of the assessee. The reassessment proceedings could not be resorted to unless there was reason to believe, rather than suspect, that income had escaped assessment. Thus, reassessment proceeding was to be set aside. |
In compliance of announcement by Finance Minister in his Budget Speech 2014-15 the Government of India has introduced a new scheme named "Sukanya Samridhhi Account" vide Notification No.GSR No.863(E), dated 2nd December, 2014. It has been decided to allow 9.1% rate of interest on investments in the scheme during the financial year 2014-15.
Sukanya Samridhi Account- 9.1% interest rate for investment during 2014-15
OFFICE MEMORANDUM
Government of India
Ministry of Finance
Department of Economic Affairs
Ministry of Finance
Department of Economic Affairs
F.NO. 2/3/2014.NS-II, DATED 20-1-2015
Subject: Launch of scheme for Girl Child named "Sukanya Samridhhi Account" by Hon'ble Prime Minister – rate of interest reg.
In compliance of announcement by Finance Minister in his Budget Speech 2014-15 the Government of India has introduced a new scheme named "Sukanya Samridhhi Account" vide Notification No.GSR No.863(E), dated 2nd December, 2014. It has been decided to allow 9.1% rate of interest on investments in the scheme during the financial year 2014-15.
This has the approval of Union Finance Minister.
(Rajendra Kumar Thakur)
Under Secretary to the Govt. of India
 | |||||||
Sukanya Samridhi Account- 9.1% interest rate for investm... In compliance of announcement by Finance Minister in his Budget Speech 2014-15 the Government of India has introduced a new scheme named "Sukany... | |||||||
THE Income Tax Officer filed a complaint in the Court of ACMM that a company has deducted TDS amount of Rs.5,22,597/- and Rs.12,73,806/- during the Financial Year 2008-09 and 2009-10 respectively but has not deposited the same with Government account within the prescribed period. Hence, it was prayed that maximum fine may be awarded to the convict as prescribed in the Act.
The Judge observed, "Evasion of tax by companies/persons in one form or the other form by non-depositing of TDS or other taxes within prescribed time by a company, is rising day by day which causes huge loss to government exchequer and such practice should be curbed with firm hand. In this case, admittedly, the convict was under obligation to deposit the T.D.S. Amount within stipulated period from the date of deduction but same was not deposited and there was a delay."
So, the Company was sentenced to pay a fine of Rs.50,000/- for the offence u/s 276B of Income Tax Act for F.Y. 2008-09 and Rs.1,00,000/- for F.Y. 2009-10.
The Income Tax authorities are now launching prosecution in cases of non-deposit of TDS deducted.
__._,_.___
No comments:
Post a Comment