Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

Ms. Grihalakshmi Films Versus Joint Commissioner of Income Tax, Range 1, Principal Commissioner Of Income Tax, Commissioner of Income Tax, Central Board of Direct Taxes, And Union of India, Ministry of Finance

Benefit of Amnesty scheme in respect of penalty only - Penalty imposed on the petitioners u/s 271D, 271E and 272A(2)(C) - Revenue denied the benefit as there is a reference to a payment of tax and interest payable on the total income finally determined, along with 25% of the minimum penalty leviable, the Scheme must be intended to cover only such penalties as have been imposed on an assessee along with the assessment order. - Held that:- Firstly, the definition of tax arrears does not exclud .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ment year in question. The object of the Scheme appears to be to ensure that, while a person seeking an Amnesty Scheme only in respect of the penalty that is imposed on him, avails the benefit of the Scheme to that extent, it should also be ensured that the said declarant discharges the tax and interest liability under the Income Tax Act for the assessment year in question. - A person, who defaults on the tax and interest liability under the Income Tax Act for the assessment year, cannot cl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cannot be legally sustained to deny the petitioners the benefit of Ext.P4 Amnesty Scheme. - Resultantly, quash Exts.P8, P9 and P10 intimations in both the writ petitions and direct the 2nd respondent to process Exts.P5, P6 and P7 declarations submitted by the petitioners in both the writ petitions expeditiously and in terms of Exts.P4 Scheme, as clarified in this judgment. - Decided in favor of assessee. - W.P.(C).Nos.6417 And 6418 of 2017 - Dated:- 26-5-2017 - MR. A.K.JAYASANKARAN NAMBIAR, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he refusal by the 2nd respondent - Principal Commissioner of Income Tax to process an application that was preferred by them for obtaining the benefit of the Direct Tax Dispute Resolution Scheme, 2016 (hereinafter referred to as 'the Amnesty Scheme') in respect of penalties that were imposed on the petitioner under Sections 271D, 271E and 272A (2) (C) of the Income Tax Act. The facts in these writ petitions would indicate that, for the assessment years 2007-2008, the petitioners had decl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s required by Section 285B regarding the film production carried on by them. The notices issued to the petitioners culminated in orders of penalty that were imposed on the petitioners under Sections 271D, 271E and 272A (2) (C) of the Income Tax Act. The petitioners, aggrieved by the orders of penalty passed against them, preferred appeals before the Commissioner of Income Tax (Appeals), the 3rd respondent herein and the said appeals are stated to be pending. While so, by Ext.P4 Amnesty Scheme, t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tax and interest payable on the total income finally determined. The phrase 'tax arrear' is defined in the Amnesty Scheme as meaning the amount of tax, interest or penalty determined under the Income Tax Act or the Wealth-tax Act, in respect of which an appeal is pending before the Commissioner of Income Tax (Appeals) or the Commissioner of Wealth-tax (Appeals) as on the 29th day of February, 2016. For ease of reference the relevant provisions are extracted hereunder: 201. (1) In this S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n or before a date to be notified by the Central Government in the Official Gazette, a declaration to the designated authority in accordance with the provisions of section 203 in respect of tax arrear, or specified tax, then, notwithstanding anything contained in the Income-tax Act or the Wealth-tax Act or any other provision of any law for the time being in force, the amount payable under this Scheme by the declarant shall be as under, namely:- (I) in case of pending appeal related to tax arrea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and the tax and interest payable on the total income finally determined. (II) In case of specified tax, the amount of such tax so determined. 3. A perusal of the Scheme also indicates that a declaration under Section 202 of the Finance Act, 2016, governing the Amnesty Scheme is to be made, by the applicant seeking the benefit of the Scheme, before the designated authority in the prescribed form and in the prescribed manner and, on the application of the declarant being considered in terms of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ment years, in consequence of a search initiated under Section 37A or requisition made under Section 37B of the Wealth-tax Act if it relates to any tax arrear; (ii) relating to an assessment or reassessment in respect of which a survey conducted under section 133A of the Income-tax Act or section 38A of the Wealth-tax Act, has a bearing if it relates to any tax arrear; (iii) relating to an assessment year in respect of which prosecution has been instituted or or before the date of filing of decl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sputed tax, interest or penalty, and the amnesty is to be granted to the extent contemplated in the Amnesty Scheme. 4. In the instant case, while the petitioners submitted their declarations in the prescribed form before the designated authority, by Exts.P8, P9 and P10 intimations served on them, they were informed that the declarations submitted by them could not be processed since, as per the Amnesty Scheme, the tax arrears in the case of penalty necessarily referred only to such penalty as wa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sty Scheme. 5. A statement has been filed on behalf of the respondents 1 to 3, wherein the stand taken in Exts.P8 to P10 intimations served on the petitioners is sought to be justified based on the clarificatory Circulars issued by the Central Board of Direct Taxes (CBDT) which purport to clarify the scope of Ext.P4 Amnesty Scheme. In particular, it is reiterated that the petitioners would not be entitled to the benefit of the Amnesty Scheme since the penalties imposed on them were not linked to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ned as meaning an amount of tax, interest or penalty determined, inter alia, under the Income Tax Act, and in respect of which an appeal is pending before the appellate authority as on 29.02.2016. The Scheme also envisages that, in the case of a pending appeal related only to penalty,the amount payable by an eligible declarant would be 25% of the minimum penalty leviable, along with the tax and interest payable on the total income finally determined. It is not in dispute that, in the instant cas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

heme must be intended to cover only such penalties as have been imposed on an assessee along with the assessment order. The clarification of the CBDT in the context of a penalty order under Section 271(C) or 271 (C) (A) of the Income Tax Act also suggests that, such penalties, as are not linked to assessment proceedings, would not be covered under the Scheme. On an overall consideration of the Scheme, however, I do not see any scope for such a restrictive interpretation of the ambit of the Amnes .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

Forum: Input tax credit

Forum: Cess paid instead of SGST

Forum: Excise duty credit on finished stock at additional place of business.

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Forum: GST rates on mobile recharge business

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Forum: 3B mistake

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version