Tuesday, September 1, 2015

[aaykarbhavan] Four Imp CBDT Directives + Four Imp Verdicts On S. 271(1)(c) Penalty, Scope Of Search Assessments Etc



Dear Subscriber,

CBDT Instruction No. 08/2015 Dt 31.08.2015 Reg Compulsory Manual Selection Of Cases For Scrutiny During FY 2015-2016

The CBDT has issued Instruction No. 08/ 2015 dated 31.08.2015 to lay down the parameters for compulsory manual selection of cases for scrutiny during the Financial Year 2015-2016


CBDT's Directive On Revival Of Appeals Dismissed Due To Low Tax Effect Circular

The CBDT has issued a directive dated 27.08.2015 stating that in view of the judgement of the Supreme Court in CIT-VIII, Delhi Vs. Suman Dhamija holding that the monetary limits specified in Instruction No. 3/2011 dated 09.02.2011 shall apply only to appeals filed after that date and not to pending appeals, the department should file Miscellaneous/ Review Petitions to seek revival of the department's appeals which have been dismissed on the interpretation that the said Instruction No. 3/2011 applies to pending appeals.


Order u/s 119 Extending Due Date For Filing ROI For Assessees in Gujarat

The CBDT has issued an order dated 31.08.2015 u/s 119 of the Income-tax Act to extend the due date for filing the return of income from 31.08.2015 to 07.09.2015, in cases of Income-tax assessees in the State of Gujarat


CBDT's Guidance Notes On Implementation Of FATCA Reporting Requirements Under Rules 114F to 114H Of Income-tax Rules

The Central Board of Direct Taxes (CBDT) has issued guidance notes dated 31.08.2015 on implementation of reporting requirements for the US law called "Foreign Account Tax Compliance Act" (FATCA). Under FATCA, foreign financial institutions that fail to give information about their American clients to US authorities would face 30 per cent withholding tax. FATCA provides for 30 per cent withholding tax on US source payments made to foreign financial institutions (FIs) unless they enter into agreement with Internal Revenue Service (IRS) to provide information about accounts held with them by USA persons or entities controlled by USA persons


CIT vs. Kabul Chawla (Delhi High Court)

S. 153A/ 153C: Entire law on the scope of additions that can be made in a pending assessment and in a completed assessment pursuant to a search u/s 132 explained

Completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment


Pr. CIT vs. Control And Switchgear Ltd (Delhi High Court)

S. 271(1)(c): Claim that compensation received from foreign party is a capital receipt, though wrong on merits, does not attract penalty if assessee disclosed facts in ROI and was supported by a legal opinion

These facts are sufficient to distinguish the present case from the facts in CIT Delhi v. Zoom Communication 327 ITR 510 (Del) where the Court observed that apart from a making wrong claim, the Assessee did so not on the basis of any advice given to it by an auditor or tax expert. Even in MAK Data P. Ltd. v. CIT 358 ITR 593 (SC), the Supreme Court held on facts that the Assessee there had no intention to declare its true income and no explanation was offered by it for the concealment of income. In the facts of the present case, the Court is satisfied that no error of law was committed either by the CIT (A) or the ITAT in holding that Explanation 1 to Section 271(1)(c) of the Act was not attracted. This was not a case of an Assessee furnishing inaccurate particulars


Simran Singh Gambhir vs. DDIT (ITAT Delhi)

S. 271(1)(c): Offering interest on maturity on Bonds as "long-term capital gains" instead of as "income from other sources" is a mere change in the head of income and a case of bona fide mistake which does not attract penalty

The interest of all the three years was offered to tax in the year of maturity and not year-wise. This is just change in the head of income under which the income is offered to tax. The taxation of the receipt is changed to the head of income 'other sources' from the head of income 'capital gain'. The explanation filed by the assessee is bona fide. This is a case of a bona fide mistake on part of the assessee


CIT vs. Divine Infracon Pvt. Ltd (Delhi High Court)

S. 253/ Rule 27: While the Tribunal can examine all questions which relate to the subject matter of an appeal but, once an issue has attained finality and is not a subject matter of the dispute before the Tribunal, it would not be open for the Tribunal to reopen the issue on the pretext of examining a question of law

Indisputably, the Revenue could also not take recourse to Rule 27 of the Income Tax (Appellate Tribunal) Rules, 1963. By virtue of the said Rule, a respondent before the Tribunal can support the decision appealed against not only on the grounds decided in favour of the respondent but also on grounds decided against it. However, Rule 27 of the said Rules would not extend to permitting the respondent to expand the scope of an appeal and assail the decision on issues, which are not subject matter of the appeal


Regards,

 

Editor,

 

itatonline.org

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