TMI BlogPrior permission under section 281 of the Income Tax Act, 1961 to create a charge on the assets of business - issuance of guidelines.X X X X Extracts X X X X X X X X Extracts X X X X ..... g and there is no likelihood of demand arising in the next six months, then the permission should be granted. (ii) If undisputed demand is outstanding and there is no likelihood of demand arising in next 6 months, then the tax payer should pay the same along with interest due thereon and then permission should be granted. (iii) If there is disputed demand outstanding, then the tax payer should obtain stay for the same and indemnify the outstanding demand by way of bank guarantee or sufficient assets or by Department retaining the first charge on the assets proposed to be transferred or on which such charge is being created, to the extent of such demand. Thereafter, the permission u/s 281 would be granted by the A.O. (iv) If demand is likely to arise in the next six month, then the A.O. should explore the possibility of action prescribed u/s 281B . 4. There would be only one level of intervention i.e. at the level of the range head for granting permission. The cases in which A.O. would require such approval would be where (a) value of assets being transferred or on which charge is being created or (b) the amount of charge being created is Rs. Ten crores or more. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the possession of an asset. According to Section 281 , no tax payer shall make a sale or mortgage or gift or exchange or any other mode of transfer of any asset in favour of any other person, during the pendency of any proceedings or after the completion of proceedings, but before service of notice under Rule 2 of the Second Schedule. However, the following exceptions are provided in the Act: The transfer is made for adequate consideration and without any notice of proceedings or pendency of tax The previous permission of the Assessing Officer is obtained The tax payable does not exceed Rs 5000/- and the value of the asset does not exceed Rs 10000/- 2. Asset means land, building, plant, machinery, shares, securities and fixed deposits in bank (other than Stock in trade ) 3. " Previous Year" is the financial year (1st April to the following 31" March) during which the income in question has been earned. "Assessment Year" is the financial year immediately following the previous year 4. Scheme of the Form The form has been divided into four parts, the details of the same are provided below, i. Part A seeks general information requiring identificatory and other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome has escaped assessment 154 Rectification of mistake 139(1) Time Limit for filing the Return 139(4) Belated Return 142(1) Inquiry before assessment 143(1) Summary Assessment 143(3) Regular Assessment 153A Assessment in case of search 153C Assessment of income of any other person 158BA Assessment of undisclosed income as a result of search 158BFA Levy of interest and penalty in certain cases 174 Assessment of persons leaving India 174A Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose 175 Assessment of persons likely to transfer property to avoid tax 184 Assessment as a firm 201 Consequences of failure to deduct or pay 220(2) Interest in case demand not paid within 30 days from the date of service 220 Interest in case demand not paid within 30 days from the date of service 221 Penalty payable when tax in default 254 O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 206CA 273 False estimate of, or failure to pay, advance tax 275A Contravention of order made under sub-section (3) of section 132 275B Failure to comply with the provisions of clause (iib) of subsection (1) of section 132 276 Removal, concealment, transfer or delivery of property to thwart tax recovery 276A Failure to comply with the provisions of sub-sections (1) and (3) of section 178 276AB Failure to comply with the provisions of sections 269UC 269UE and 269UL 276B Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B 276BB Failure to pay the tax collected at source 276C Wilful attempt to evade tax, etc. 276CC Failure to furnish returns of income 276CCC Failure to furnish return of income in search cases 276D Failure to produce accounts and documents 277 False statement in verification etc. 277A Falsification of books of account or document, etc. 278 Abetment of false return, etc. 278A Punishment for second an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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