(i) The document discusses the scope for reopening an income tax assessment under section 147 when an assessment has already been completed under section 143(3).
(ii) It summarizes a Delhi High Court ruling that established conditions for validly initiating reassessment proceedings, including that the assessing officer must form a prima facie opinion of under-assessment based on records.
(iii) It analyzes situations where reassessment would amount to a change of opinion versus situations where new information emerges, and notes a dissenting opinion that held reassessment should not be allowed if full particulars were originally provided.
REOPENING U/S 147 OF THE INCOME TAX ACT, 1961RanoJain
The document discusses the law and procedures related to reopening of assessments under section 147 of the Income Tax Act. Some key points discussed include:
- The time limits for issuance of notice under sections 147, 148 and 149.
- Requirements regarding service of notice, reasons for reopening to be recorded before notice, approval from the competent authority.
- Issues to be considered in the reasons for reopening such as independent application of mind, non-borrowed satisfaction, mentioning of material facts.
- Exceptions under the proviso to section 147 regarding income escaping assessment after 4/16 years in certain cases.
- Procedures after notice like filing return, seeking reasons, disposal of objections.
- Time
Section 119(2)(b) of the Income Tax Act, 1961 - CBDT needs to act judicially,...D Murali ☆
Section 119(2)(b) of the Income Tax Act, 1961 - CBDT needs to act judicially, not arbitrarily - T. N. Pandey - Article published in Business Advisor, dated September 10, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Validity of Notice Issued for Income Escaping Assessment - Analysis of SC RulingDVSResearchFoundatio
Key Takeaways:
- Facts of the Case
- Issues Raised by the Department
- Contentions of the Revenue and Assessee
- Analysis and Ruling given by the Supreme Court
As GST settle in are a day to day life, and taxpayers get ready to upload all there returns. That is soon to be followed by the Assessment and appeal proceedings. A presentation of all you need to know about the dispute resolutions-appeals and revisions, demand and recovery. Also, in particular slides added the funny side of the provisions(red).
REOPENING U/S 147 OF THE INCOME TAX ACT, 1961RanoJain
The document discusses the law and procedures related to reopening of assessments under section 147 of the Income Tax Act. Some key points discussed include:
- The time limits for issuance of notice under sections 147, 148 and 149.
- Requirements regarding service of notice, reasons for reopening to be recorded before notice, approval from the competent authority.
- Issues to be considered in the reasons for reopening such as independent application of mind, non-borrowed satisfaction, mentioning of material facts.
- Exceptions under the proviso to section 147 regarding income escaping assessment after 4/16 years in certain cases.
- Procedures after notice like filing return, seeking reasons, disposal of objections.
- Time
Section 119(2)(b) of the Income Tax Act, 1961 - CBDT needs to act judicially,...D Murali ☆
Section 119(2)(b) of the Income Tax Act, 1961 - CBDT needs to act judicially, not arbitrarily - T. N. Pandey - Article published in Business Advisor, dated September 10, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Validity of Notice Issued for Income Escaping Assessment - Analysis of SC RulingDVSResearchFoundatio
Key Takeaways:
- Facts of the Case
- Issues Raised by the Department
- Contentions of the Revenue and Assessee
- Analysis and Ruling given by the Supreme Court
As GST settle in are a day to day life, and taxpayers get ready to upload all there returns. That is soon to be followed by the Assessment and appeal proceedings. A presentation of all you need to know about the dispute resolutions-appeals and revisions, demand and recovery. Also, in particular slides added the funny side of the provisions(red).
Gagan Deep Kathuria vs. ACIT, Sriganganagarsuresh ojha
This document summarizes a tax appeal case in India. It discusses:
- An assessment order by an Assessing Officer (AO) for tax year 2007-08 setting income at Rs. 74,75,000.
- The Commissioner initiated revision under section 263, setting aside the assessment on grounds it was erroneous and prejudicial to revenue interests.
- The taxpayer appealed, arguing the AO properly dealt with matters. The Commissioner responded supporting his findings.
- The tribunal analyzed the law on section 263 revisions. It found the AO adequately examined issues, applied mind, and reached a plausible conclusion within his powers. Thus, the assessment was not erroneous and the Commissioner improperly invoked revision powers.
Weekly Tax Newsletter 07-06-2020- N Pahilwani & AssociatesNitin Pahilwani
The document discusses self-invoicing under the GST regime. Self-invoicing is required when goods or services are purchased from an unregistered supplier and the liability to pay tax is under reverse charge. Since the unregistered supplier cannot issue a GST invoice, the recipient must issue a self-invoice for documenting the tax liability and availing input tax credit. The key details are:
1. Self-invoicing is required for purchases covered under reverse charge as per Sections 9(3), 9(4) of the CGST Act and Sections 5(3), 5(4) of the IGST Act.
2. The recipient must issue an invoice within 30 days for goods and 60 days for services from
If you face any problem about the research then you can communicate with me and I expect your comments
E-mail : advkarim1994@gmail.com
Phone : 01558964737
Income-tax – Case law updates - V. K. SubramaniD Murali ☆
Income-tax – Case law updates - V. K. Subramani - Article published in Business Advisor, dated August 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The document provides background information on the establishment of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) in India. It summarizes their roles and jurisdictions, including consolidating various existing company law tribunals and courts under one authority. Key points covered include notifications establishing the NCLT and NCLAT, their powers and procedures, transition of cases from prior bodies to the new tribunals, and advantages of the consolidated system such as streamlined appeals and more uniform judgments.
Study Tip 11 Registers and Records by dipti dhakulDipti Dhakul
Register to be Maintained under Companies Act, 2013:
Register of sweat equity shares.( Section 54 and Rule 8(14)of Companies) [Share Capital and Debentures Rules,2014]
Register of Employee Stock Options. [Section 162(1)(b) Rule 12 of Companies(Share Capital and Debentures) Rules,2014]
Register of securities bought back. [Section 68(9) and Rule 17(12) of companies (Share Capital and Debenture) Rules, 2014]
Register of deposits. [Section 73 and Rule 14 Companies (Acceptance of Deposits) Rules,2014]
Register of charges. [Section 85 and Rule 7 of Companies (Registration of Charges) Rules2014]
Register of members. [Section 88(1)(a) and Rule 3 of Companies(Management and Administration) Rules, 2014
Register of debenture holders. [Section 88(1)(b) & (c) and Rule 4 of Companies (Management and Administration) Rules, 2014]
Register of debenture holders. [Section 88(1)(b) & (c) and Rule 4 of Companies (Management and Administration) Rules, 2014]
Foreign register. [Section 88 (4) and Rule 7 of Companies (Management and Administration) Rules, 2014].
Register of Renewed and Duplicate Share Certificates. [Rule 6 of the Companies (Share Capital and Debentures) Rules,2014]
Register of Significant beneficial owners in a company. (Section 90 of Companies Act).
Register of Postal Ballot. [Section 110 and Rule 22 of the Companies (Management and Administration) Rules, 2014]
Books containing minutes of General Meeting and of Board and of Committees of Directors. [Section 118]
Register of Directors/ Key Managerial Personnel. [Section170(1)]
Register of investments in securities not held in company’s name. [Section 18 and Rule 14 of Companies (Meetings of Board and its Powers) Rules,2014]
Register of loans, guarantees given and security provided or making acquisition of securities (Section186(9) and Rule 12 Companies (Meetings of Boards and its Powers) Rules2014
Register of contracts with companies/firms in which directors are interested. [Section 189(5) and Rule 16 of Companies (Meetings of Boards and its Powers) Rules,2014]
Section 482 of the CrPC grants High Courts inherent powers to secure the ends of justice or prevent abuse of legal process. [1] It allows High Courts to quash criminal proceedings that amount to harassment or where there is no prima facie offense. [2] The powers are wide but must be used cautiously and not to interfere with legitimate prosecution. [3] High Courts can exercise these powers at any stage of proceedings under Section 482 to prevent injustice.
AUTOMATIC VACATION OF STAY GRANTED BY TRIBUNALDCIT v. PEPSI FOODS LTD. [2021]...DVSResearchFoundatio
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
The meeting reviewed the progress of investigations into the NSEL payment crisis and legal challenges. Several court rulings impacted the cases. Agencies were advised to gather evidence of the involvement of NSEL and FTIL management in the scam and defend the cases. Investigating agencies were asked to share information with the Competent Authority to strengthen the legal defense. The meeting discussed implications of the court rulings and next steps for various agencies.
The document discusses key concepts related to company audits under the Companies Act of 1956 in India. It covers the appointment and remuneration of auditors, qualifications of auditors, disqualifications of auditors, powers and duties of auditors, and the audit report. It also discusses special provisions for government-owned companies and the power of the central government to order special audits. Key points include:
- Auditors must be appointed at the annual general meeting and remuneration must be fixed.
- Only chartered accountants can serve as auditors.
- Auditors have rights to access company documents and attend general meetings.
- Duties include inquiring about loans and transactions
Statutory Registers under Companies Act, 2013.Saurav Roy
The document discusses the statutory registers that must be maintained by companies under the Companies Act 2013. It provides definitions of statutory registers and explains why they are important as they contain historical information about shareholders, share transfers, allotments, charges on the company, and other corporate records. It then lists the specific registers that must be maintained, such as the register of members, register of charges, register of deposits, and others. It provides details on where these registers must be kept, authentication requirements, and other specifics regarding their maintenance and inspection. The key information is that the Companies Act 2013 mandates what registers a company must maintain and the document outlines these requirements.
Direct tax laws update - V. K. SubramaniD Murali ☆
1. The court held that the Assessing Officer cannot reject the books of account of an assessee and make assessments based on their own views without valid reasons or evidence of discrepancies in the accounts.
2. The court ruled that individuals who inherited property together would not constitute an Association of Persons simply due to the government acquiring a portion of the land and providing compensation, as there was no voluntary act to form an association.
3. The court determined that an assessee who demolished an acquired property and undertook new construction was eligible for tax exemption under Section 54F, as the new construction was completed within the specified three-year time limit.
Here we are with the Thirtieth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in thecontents. We would very much
appreciate your feedback which consistently helps us in improving and upgrading the contents.
The document discusses the Serious Fraud Investigation Office (SFIO) under the Companies Act of 2013 in India. It establishes SFIO as the agency responsible for investigating corporate fraud. The SFIO is headed by a director and consists of experts from fields like banking, taxation, and law. It has powers to investigate company affairs, examine witnesses, and impose fines. Upon completion of investigations, SFIO submits interim and final reports to the central government, which may then direct prosecution. Fraud is punishable by imprisonment between 6 months to 10 years along with fines under Section 447 of the Companies Act. The SFIO aims to better coordinate fraud prosecution and has more independence than under the previous Companies Act
1. The document discusses judicial and legislative responses to the COVID-19 pandemic regarding the Insolvency and Bankruptcy Code (IBC) in India. The Supreme Court extended limitation periods for all legal proceedings. The NCLAT excluded lockdown periods from IBC resolution timelines. Regulations were amended to relax post-CIRP timelines by excluding lockdown periods.
2. The government increased the IBC default threshold from Rs. 1 lakh to Rs. 1 crore to provide relief to MSMEs. Notifications were issued to relax IBC timelines by excluding lockdown periods.
3. The changes aim to provide cushion to companies facing financial distress from COVID-19 and ease pressure on
This document summarizes the key provisions around auditor eligibility, qualifications, disqualifications, and appointment under the Companies Act 2013 in India. It discusses who is eligible to be an auditor, what qualifications they must have, situations that would disqualify them, and the process and timelines for appointing auditors for new and existing companies, including filling casual vacancies and auditor rotation requirements. It also covers the auditor's remuneration and the process for removing an auditor before the end of their term.
The Delhi High Court Full Bench decision addressed whether the reopening of a scrutiny assessment can be challenged as a "change of opinion" if the subject matter of the notice was not examined in the original assessment, even if the taxpayer made a full and true disclosure. The majority view was that reopening within four years is not barred by "change of opinion" in a "no opinion" case where the subject matter was not examined originally. One dissenting judge argued that reopening should not be allowed even within four years for "no opinion" cases unless failure to disclose was shown.
The document discusses the provisions relating to the appointment of first auditors under the Companies Act 2013. It states that for companies other than government companies, the first auditor is to be appointed by the Board of Directors within 30 days of registration, failing which the members can appoint the auditor within 90 days in an EGM. For government companies, the first auditor is to be appointed by the Comptroller and Auditor General of India within 60 days of registration, failing which the Board can appoint within 30 days, and if they fail, the members can appoint within 60 days of an EGM. Two case studies are provided to illustrate these provisions.
Presentation on Inspection and Investigation under the Companies Act 2013Jaladhi Shukla
The document discusses provisions related to inspections and investigations under the Companies Act 2013. It provides an overview of the need for inspections due to issues like corporate scams and accounting malpractices. It outlines the powers of the Registrar of Companies, Inspector and SFIO to conduct inspections and investigations. Practical aspects like selection criteria for companies, documents to be inspected, and common observations from balance sheet scrutiny are also covered. The document appears to be a presentation on inspections and investigations for participants of an ICSI chapter meeting.
S. 147 no change of opinion if ao does not specifically apply his mind usha...softdynamite
The document is a judgment from the High Court of Delhi regarding substantial questions of law referred to a Full Bench pertaining to the interpretation of Section 147 of the Income Tax Act, 1961 dealing with reopening of assessments. The 3 questions referred relate to the meaning of the term "change of opinion" and whether reassessment can be valid if there was full disclosure originally or if the Assessing Officer did not raise any queries on a particular issue. The Full Bench provides context on the term "opinion" and examines the conditions for reopening an assessment under Section 147. It also discusses conflicting views on whether only the assessment order can be referred to in determining change of opinion or other factors can also be considered.
This document discusses provisions related to assessment and reassessment under the Income Tax Act of 1961. It provides an overview of sections 147-153 which deal with assessment or reassessment of income escaping assessment. It discusses the constitutional validity of reassessment provisions, legislative developments, situations that allow for assessment or reassessment under section 147, and key considerations like "reason to believe" and time limits. It also summarizes various court rulings related to the interpretation and application of these sections.
Gagan Deep Kathuria vs. ACIT, Sriganganagarsuresh ojha
This document summarizes a tax appeal case in India. It discusses:
- An assessment order by an Assessing Officer (AO) for tax year 2007-08 setting income at Rs. 74,75,000.
- The Commissioner initiated revision under section 263, setting aside the assessment on grounds it was erroneous and prejudicial to revenue interests.
- The taxpayer appealed, arguing the AO properly dealt with matters. The Commissioner responded supporting his findings.
- The tribunal analyzed the law on section 263 revisions. It found the AO adequately examined issues, applied mind, and reached a plausible conclusion within his powers. Thus, the assessment was not erroneous and the Commissioner improperly invoked revision powers.
Weekly Tax Newsletter 07-06-2020- N Pahilwani & AssociatesNitin Pahilwani
The document discusses self-invoicing under the GST regime. Self-invoicing is required when goods or services are purchased from an unregistered supplier and the liability to pay tax is under reverse charge. Since the unregistered supplier cannot issue a GST invoice, the recipient must issue a self-invoice for documenting the tax liability and availing input tax credit. The key details are:
1. Self-invoicing is required for purchases covered under reverse charge as per Sections 9(3), 9(4) of the CGST Act and Sections 5(3), 5(4) of the IGST Act.
2. The recipient must issue an invoice within 30 days for goods and 60 days for services from
If you face any problem about the research then you can communicate with me and I expect your comments
E-mail : advkarim1994@gmail.com
Phone : 01558964737
Income-tax – Case law updates - V. K. SubramaniD Murali ☆
Income-tax – Case law updates - V. K. Subramani - Article published in Business Advisor, dated August 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The document provides background information on the establishment of the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) in India. It summarizes their roles and jurisdictions, including consolidating various existing company law tribunals and courts under one authority. Key points covered include notifications establishing the NCLT and NCLAT, their powers and procedures, transition of cases from prior bodies to the new tribunals, and advantages of the consolidated system such as streamlined appeals and more uniform judgments.
Study Tip 11 Registers and Records by dipti dhakulDipti Dhakul
Register to be Maintained under Companies Act, 2013:
Register of sweat equity shares.( Section 54 and Rule 8(14)of Companies) [Share Capital and Debentures Rules,2014]
Register of Employee Stock Options. [Section 162(1)(b) Rule 12 of Companies(Share Capital and Debentures) Rules,2014]
Register of securities bought back. [Section 68(9) and Rule 17(12) of companies (Share Capital and Debenture) Rules, 2014]
Register of deposits. [Section 73 and Rule 14 Companies (Acceptance of Deposits) Rules,2014]
Register of charges. [Section 85 and Rule 7 of Companies (Registration of Charges) Rules2014]
Register of members. [Section 88(1)(a) and Rule 3 of Companies(Management and Administration) Rules, 2014
Register of debenture holders. [Section 88(1)(b) & (c) and Rule 4 of Companies (Management and Administration) Rules, 2014]
Register of debenture holders. [Section 88(1)(b) & (c) and Rule 4 of Companies (Management and Administration) Rules, 2014]
Foreign register. [Section 88 (4) and Rule 7 of Companies (Management and Administration) Rules, 2014].
Register of Renewed and Duplicate Share Certificates. [Rule 6 of the Companies (Share Capital and Debentures) Rules,2014]
Register of Significant beneficial owners in a company. (Section 90 of Companies Act).
Register of Postal Ballot. [Section 110 and Rule 22 of the Companies (Management and Administration) Rules, 2014]
Books containing minutes of General Meeting and of Board and of Committees of Directors. [Section 118]
Register of Directors/ Key Managerial Personnel. [Section170(1)]
Register of investments in securities not held in company’s name. [Section 18 and Rule 14 of Companies (Meetings of Board and its Powers) Rules,2014]
Register of loans, guarantees given and security provided or making acquisition of securities (Section186(9) and Rule 12 Companies (Meetings of Boards and its Powers) Rules2014
Register of contracts with companies/firms in which directors are interested. [Section 189(5) and Rule 16 of Companies (Meetings of Boards and its Powers) Rules,2014]
Section 482 of the CrPC grants High Courts inherent powers to secure the ends of justice or prevent abuse of legal process. [1] It allows High Courts to quash criminal proceedings that amount to harassment or where there is no prima facie offense. [2] The powers are wide but must be used cautiously and not to interfere with legitimate prosecution. [3] High Courts can exercise these powers at any stage of proceedings under Section 482 to prevent injustice.
AUTOMATIC VACATION OF STAY GRANTED BY TRIBUNALDCIT v. PEPSI FOODS LTD. [2021]...DVSResearchFoundatio
Key Takeaways:
- Background and Overview of Legal Provision
- Facts of the Case
- Contentions of the Assessee and Revenue
- Supreme Court’s Verdict
- Key Learnings and Way Forward
The meeting reviewed the progress of investigations into the NSEL payment crisis and legal challenges. Several court rulings impacted the cases. Agencies were advised to gather evidence of the involvement of NSEL and FTIL management in the scam and defend the cases. Investigating agencies were asked to share information with the Competent Authority to strengthen the legal defense. The meeting discussed implications of the court rulings and next steps for various agencies.
The document discusses key concepts related to company audits under the Companies Act of 1956 in India. It covers the appointment and remuneration of auditors, qualifications of auditors, disqualifications of auditors, powers and duties of auditors, and the audit report. It also discusses special provisions for government-owned companies and the power of the central government to order special audits. Key points include:
- Auditors must be appointed at the annual general meeting and remuneration must be fixed.
- Only chartered accountants can serve as auditors.
- Auditors have rights to access company documents and attend general meetings.
- Duties include inquiring about loans and transactions
Statutory Registers under Companies Act, 2013.Saurav Roy
The document discusses the statutory registers that must be maintained by companies under the Companies Act 2013. It provides definitions of statutory registers and explains why they are important as they contain historical information about shareholders, share transfers, allotments, charges on the company, and other corporate records. It then lists the specific registers that must be maintained, such as the register of members, register of charges, register of deposits, and others. It provides details on where these registers must be kept, authentication requirements, and other specifics regarding their maintenance and inspection. The key information is that the Companies Act 2013 mandates what registers a company must maintain and the document outlines these requirements.
Direct tax laws update - V. K. SubramaniD Murali ☆
1. The court held that the Assessing Officer cannot reject the books of account of an assessee and make assessments based on their own views without valid reasons or evidence of discrepancies in the accounts.
2. The court ruled that individuals who inherited property together would not constitute an Association of Persons simply due to the government acquiring a portion of the land and providing compensation, as there was no voluntary act to form an association.
3. The court determined that an assessee who demolished an acquired property and undertook new construction was eligible for tax exemption under Section 54F, as the new construction was completed within the specified three-year time limit.
Here we are with the Thirtieth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in thecontents. We would very much
appreciate your feedback which consistently helps us in improving and upgrading the contents.
The document discusses the Serious Fraud Investigation Office (SFIO) under the Companies Act of 2013 in India. It establishes SFIO as the agency responsible for investigating corporate fraud. The SFIO is headed by a director and consists of experts from fields like banking, taxation, and law. It has powers to investigate company affairs, examine witnesses, and impose fines. Upon completion of investigations, SFIO submits interim and final reports to the central government, which may then direct prosecution. Fraud is punishable by imprisonment between 6 months to 10 years along with fines under Section 447 of the Companies Act. The SFIO aims to better coordinate fraud prosecution and has more independence than under the previous Companies Act
1. The document discusses judicial and legislative responses to the COVID-19 pandemic regarding the Insolvency and Bankruptcy Code (IBC) in India. The Supreme Court extended limitation periods for all legal proceedings. The NCLAT excluded lockdown periods from IBC resolution timelines. Regulations were amended to relax post-CIRP timelines by excluding lockdown periods.
2. The government increased the IBC default threshold from Rs. 1 lakh to Rs. 1 crore to provide relief to MSMEs. Notifications were issued to relax IBC timelines by excluding lockdown periods.
3. The changes aim to provide cushion to companies facing financial distress from COVID-19 and ease pressure on
This document summarizes the key provisions around auditor eligibility, qualifications, disqualifications, and appointment under the Companies Act 2013 in India. It discusses who is eligible to be an auditor, what qualifications they must have, situations that would disqualify them, and the process and timelines for appointing auditors for new and existing companies, including filling casual vacancies and auditor rotation requirements. It also covers the auditor's remuneration and the process for removing an auditor before the end of their term.
The Delhi High Court Full Bench decision addressed whether the reopening of a scrutiny assessment can be challenged as a "change of opinion" if the subject matter of the notice was not examined in the original assessment, even if the taxpayer made a full and true disclosure. The majority view was that reopening within four years is not barred by "change of opinion" in a "no opinion" case where the subject matter was not examined originally. One dissenting judge argued that reopening should not be allowed even within four years for "no opinion" cases unless failure to disclose was shown.
The document discusses the provisions relating to the appointment of first auditors under the Companies Act 2013. It states that for companies other than government companies, the first auditor is to be appointed by the Board of Directors within 30 days of registration, failing which the members can appoint the auditor within 90 days in an EGM. For government companies, the first auditor is to be appointed by the Comptroller and Auditor General of India within 60 days of registration, failing which the Board can appoint within 30 days, and if they fail, the members can appoint within 60 days of an EGM. Two case studies are provided to illustrate these provisions.
Presentation on Inspection and Investigation under the Companies Act 2013Jaladhi Shukla
The document discusses provisions related to inspections and investigations under the Companies Act 2013. It provides an overview of the need for inspections due to issues like corporate scams and accounting malpractices. It outlines the powers of the Registrar of Companies, Inspector and SFIO to conduct inspections and investigations. Practical aspects like selection criteria for companies, documents to be inspected, and common observations from balance sheet scrutiny are also covered. The document appears to be a presentation on inspections and investigations for participants of an ICSI chapter meeting.
S. 147 no change of opinion if ao does not specifically apply his mind usha...softdynamite
The document is a judgment from the High Court of Delhi regarding substantial questions of law referred to a Full Bench pertaining to the interpretation of Section 147 of the Income Tax Act, 1961 dealing with reopening of assessments. The 3 questions referred relate to the meaning of the term "change of opinion" and whether reassessment can be valid if there was full disclosure originally or if the Assessing Officer did not raise any queries on a particular issue. The Full Bench provides context on the term "opinion" and examines the conditions for reopening an assessment under Section 147. It also discusses conflicting views on whether only the assessment order can be referred to in determining change of opinion or other factors can also be considered.
This document discusses provisions related to assessment and reassessment under the Income Tax Act of 1961. It provides an overview of sections 147-153 which deal with assessment or reassessment of income escaping assessment. It discusses the constitutional validity of reassessment provisions, legislative developments, situations that allow for assessment or reassessment under section 147, and key considerations like "reason to believe" and time limits. It also summarizes various court rulings related to the interpretation and application of these sections.
Income-tax – Case law updates - V. K. SubramaniD Murali ☆
1. The High Court held that an addition to total income cannot be made solely based on the report of the District Valuation Officer (DVO) due to differences in construction costs. There must be some additional tangible material for the Assessing Officer to form an opinion that the cost admitted by the assessee is incorrect.
2. When an assessee justifies a revised tax return and such justification is made well before any detection by the Revenue, it would not amount to concealment of income. If the first appellate authority and tribunal find no concealment as a question of fact, the court will not interfere.
3. When a subsidy is given to an assessee after commencement of production
Sharing a Compilation of Case Laws on ‘Notice Under Section 148’ of Income Tax Act, 1961. The said document is available at http://expertspanel.in/?qa=blob&qa_blobid=10601143440222107929 as well as at http://lunawat.com/Uploaded_Files/Attachments/F_4740.pdf
Smt. Shalu Sachdeva vs. The ACIT Circle, Sriganganagar 471-2014suresh ojha
1. The assessee appealed an order from the CIT(A) that upheld tax assessments made under reassessment by the Assessing Officer.
2. The reassessment was initiated based on an audit objection regarding a gift of Rs. 6,00,000 that was reported in the original assessment but not added to income.
3. The assessee argued the reassessment was invalid as the gift was disclosed and considered in the original assessment, so it constituted a change of opinion rather than escaped income. Jurisprudence supports the view that reassessment cannot be based on a change of opinion.
Income Tax Appellate Tribunal has no power to stay prosecution of taxpayers i...D Murali ☆
Income Tax Appellate Tribunal has no power to stay prosecution of taxpayers in respect of matters in appeal before it - T. N. Pandey - Article published in Business Advisor, dated November 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The Commissioner exercised their authority under Section 263 of the Income Tax Act to revise an assessment order from the Assessing Officer regarding an individual taxpayer. The Assessing Officer had accepted the taxpayer's return without properly applying the law around Section 14A regarding the disallowance of expenses related to exempt income.
The Commissioner found the Assessing Officer's order to be erroneous and prejudicial to revenue interests as they failed to disallow expenses related to the taxpayer's exempt mutual fund income as required by Section 14A. The taxpayer argued the order was correctly made, but the Commissioner determined the Assessing Officer did not properly apply their mind to Section 14A during the assessment. Therefore, the Commissioner was justified in revising the order under Section
The assessment procedure involves:
1) Filing of income tax returns by the assessee.
2) Notices issued by the assessing officer under various sections to collect information.
3) Determination of the assessee's income or loss by the assessing officer.
4) Determination of the tax payable or refund due.
Presentation is about the Amendment in the Income escaping assessment procedure under the newly amended Income Tax act 1961 (Finance Act 2021). Along with the details of section 154,263 and 264.
The document is a draft letter in response to penalty proceedings against the assessee under section 271(1)(c) of the Income Tax Act for inaccurate income reporting. The letter argues that the penalties should be dropped for three reasons:
1) The Supreme Court has established that inaccurate reporting means incorrect or false details provided in the tax return, which was not the case here as the additions were due to differences of opinion.
2) Mere claims in the return that were not accepted by the assessing officer do not qualify as inaccurate particulars unless found to be incorrect, erroneous or false.
3) The assessee cooperated fully, did not conceal anything, and additions were due to differences of opinion, not
Direct tax laws update - V. K. SubramaniD Murali ☆
Direct tax laws update - V. K. Subramani - Article published in Business Advisor, dated October 10, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The document discusses various types of tax assessments under the Income Tax Act, including self-assessment, summary assessment, and best judgment assessment. It discusses the procedures for issuing notices under sections 142, 143, 147, and 148 and the time limits for completing assessments. Key points include that intimations under section 143(1) are not considered orders, notices under section 148 must be served before making assessments under section 147, and the conditions for best judgment assessments are considered alternative rather than cumulative by the Supreme Court.
There are four main types of assessments under the Income Tax Act: 1) Self-assessment where the taxpayer calculates their own liability; 2) Regular assessment where the tax authority scrutinizes around 2-3% of returns filed; 3) Best judgment assessment where the authority assesses tax based on their judgment if the taxpayer does not file a return or provide complete information; 4) Reassessment where the authority re-examines a taxpayer's income if they believe income was previously missed based on new evidence or records. The document then provides details on the procedures and conditions for each type of assessment.
This document discusses the different types of assessments under Indian income tax law. It explains that there are five types of assessments: 1) self-assessment, 2) summary assessment, 3) scrutiny assessment, 4) best judgment assessment, and 5) reassessment. For each type of assessment, the document provides details on the section of the income tax law it is authorized by and the process involved. It concludes that the objective of the various assessments is to ensure taxpayers have accurately reported their income and paid the proper amount of taxes.
OBJECTIVE
Winding up is the final stage in the business cycle of a Company. It is the process of closing down the legal existence of a company. It can be done either by the Company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). The webinar covers the aspects of various provisions involved in winding up as enshrined in Companies Act, 2013 along with judicial precedents.
Representation before Applellate AuthoritiesMehul Shah
This document discusses representation before various appellate authorities for income tax matters in India. It provides details on the timeline for filing appeals to the Commissioner of Income Tax (Appeals), Income Tax Appellate Tribunal, High Court, and Supreme Court. It also outlines the forms required (Form 35 and Form 36) and procedures for filing appeals, including grounds of appeal, statement of facts, enclosures to submit, and dress code for appearances. The document notes the Dispute Resolution Panel mechanism and process for rectification requests filed online. Overall, it serves as a guide on navigating the Indian income tax appellate system.
This document summarizes sections 263 and 264 of the Income Tax Act which deal with revision of orders by the Commissioner. Section 263 allows revision of orders prejudicial to revenue within 2 years, while section 264 allows revision in favor of the assessee within 1 year. The Commissioner can revise orders passed by assessing officers and other subordinate authorities if they are erroneous and prejudicial to revenue interests (section 263) or not prejudicial to the assessee (section 264). Reasonable opportunity of being heard must be provided in both cases.
The document summarizes provisions related to revision of orders by the Commissioner of Income Tax under sections 263 and 264 of the Income Tax Act. Section 263 allows revision of orders prejudicial to revenue, while section 264 allows revision in favor of the assessee. Key details include the types of orders that can be revised, time limits, procedures to be followed, and scope of the Commissioner's powers under each section.
The Commissioner may examine records related to any tax proceeding under the relevant act and revise orders found to be erroneous and prejudicial to revenue. An order can be revised within 2 years of the financial year-end in which the order was passed, except to give effect to court rulings. The assessee must be given an opportunity to be heard and can appeal revised orders to the Income Tax Appellate Tribunal. Revisions can be made if the original order is found to contradict later court judgments, retrospective law amendments, or apparent mistakes in the record.
Similar to Is the mention in assessment order a condition to stop initiation of reassessment proceedings on the same issue? - V. K. Subramani (20)
The good of all is what is good for oneselfD Murali ☆
May Day post by S. Prabhu in his blog prtraveller
Link: https://prtraveller.blogspot.com/2020/05/d-murali-journalist.html
Ref:
1) A whistleblowing story in SlideShare https://www.slideshare.net/MuraliD1/a-whistleblowing-story-part-1
2) Whistleblowing story - Sequence of mails https://www.slideshare.net/MuraliD1/whistleblowing-story-sequence-of-mails
3) Audiobiography in Soundcloud https://soundcloud.com/muralid/audiobiography-d-murali
4) Be agitated about gender prejudice https://soundcloud.com/muralid/sound-clip-27-be-agitated
5) Demand for apology https://soundcloud.com/muralid/apo
6) Why are you agitated https://soundcloud.com/muralid/why
7) Mylapore Times article by S. Prabhu https://www.slideshare.net/MuraliD1/online-content-useful-for-sanskrit-students
8) This article in SlideShare https://www.slideshare.net/MuraliD1/the-good-of-all-is-what-is-good-for-oneself
9) Mylapore Times article link http://www.mylaporetimes.com/2020/04/senior-journo-posts-online-content-useful-for-sanskrit-students-young-and-old/
10) Tweet in CopyTasterDM handle https://twitter.com/CopyTasterDM/status/1256489049264537601
11) LinkedIn post https://www.linkedin.com/posts/muralide_d-murali-journalist-activity-6661878686062645248-9Zp0/
12) Facebook post https://www.facebook.com/dMurali/posts/10214668257814386
Business Journos Chennai WhatsApp Group infoD Murali ☆
188 participants as on April 29, 2020
Group created on August 19, 2014
Group description:
"Focus: Biz news & events in Chennai. Biz=What's typically in a biz newspaper. Ground rules: NO wishes, jokes, videos, audio, unverified fwds. Cite sources, share yr tweets. Vision: Aim for thoroughness.
A few tips: Be agile, alert, diverse, inclusive, engaging, truthful, empathetic, independent, curious, & human. Steer clear of cash/ vouchers! Ask questions. Seek clarity. Demand accountability. Demystify jargon. Wander to where spotlights don't shine.
-- DM"
Accompanying Twitter handle: @CopyTasterDM - for picking stories to share with the 'Business Journos Chennai' group
(Received from CECRI; CSIR-Council of Scientific & Industrial Research; SERC-Structural Engineering Research Centre; CECRI-Central Electrochemical Research Institute)
CSIR-CECRI-Industrial Conclave - Water treatmentD Murali ☆
CSIR-CECRI-Industrial Conclave - Water treatment
(Received from CECRI; CSIR-Council of Scientific & Industrial Research; SERC-Structural Engineering Research Centre; CECRI-Central Electrochemical Research Institute)
Blog post link: http://bit.ly/2vdIiN1
FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation D Murali ☆
'Future of Governance - Transforming the government digitally' - Presentation by Dr Rajendra Kumar, IAS, CMD, ELCOT, in FICCI Digital Disruption & Transformation Summit DDTS
Blog post link: http://bit.ly/2viWgC0
FICCI Digital Disruption & Transformation Summit DDTS agendaD Murali ☆
The document provides an agenda for the Digital Disruption and Transformation Summit 2017 held in Chennai, India. The one-day summit focused on how organizations can survive and thrive during the digital tsunami. The agenda included keynote addresses on disruptive technologies, panel discussions on opportunities in industries undergoing digital transformation, and an exhibition of digital products and services. The summit aimed to help participants understand the skills needed to succeed in the new digital age through discussions on topics such as analytics, automation, cyber security, and digital platforms.
Knight Frank India Real Estate (Jan-June 2017) ReportD Murali ☆
Knight Frank India Real Estate (Jan-June 2017) Report
Knight Frank-17H1
Kanchana Krishnan, Knight Frank on 17H1 January-June 2017 India Real Estate
(Residential, office)
Blog post link: http://bit.ly/2upCz7K
All India and Chennai ppt - India Real Estate (Jan-Jun 2017)D Murali ☆
The document provides an overview of the Indian real estate market in the first half of 2017. Some key findings include:
- Residential launches and sales declined 41% and 11% respectively year-over-year, reaching their lowest levels in the last 5-7 years, due to the impacts of demonetization and new regulations. However, affordable housing saw stronger growth.
- Office transactions declined 10% year-over-year due to industry headwinds facing the major IT/ITeS sector and a supply crunch. Vacancy levels remained low at 12%.
- Specifically in Chennai, the residential market saw marginal recovery with launches and sales up 4-5% year-over-year
Why Government is unfair to Indian Revenue Service officers who strenuously w...D Murali ☆
Why Government is unfair to Indian Revenue Service officers who strenuously work to provide fuel for efficiently running its administration? - T. N. Pandey - Article published in Business Advisor, dated April 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Supreme Court may kindly consider whether SIT appointed on its order needs to...D Murali ☆
The Supreme Court may consider winding up the Special Investigation Team (SIT) it appointed in 2011 to investigate cases of unaccounted money held abroad by Indians. The SIT was established to oversee investigations into cases like Hassan Ali Khan and Tapurias regarding foreign black money. However, its constitution represented an overreach of the judiciary into the executive's powers over tax matters. Further, a new government is now in power and has established its own agencies like the Multi Agency Group to handle similar cases, creating duplication of efforts. It is argued that the time has come for the Supreme Court to review whether continued supervision of the SIT's work falls within its jurisdiction and whether the SIT should continue functioning as a parallel body
Basic tenets of GST - Dr Sanjiv Agarwal - Article published in Business Advisor, dated May 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Possibility of set-off of business loss against cash credit/ unexplained inve...D Murali ☆
The document discusses two court cases regarding whether business losses can be set off against income assessed under sections 68-69D of the Income Tax Act, which deal with unexplained investments and expenditures. The Chensing Ventures case allowed set off of losses, while the Kerala Sponge Iron Ltd case did not. The Finance Act of 2016 amended the law to explicitly disallow set off of losses against such incomes. This amendment applies prospectively from assessment year 2017-18. The conclusion is that while clarificatory amendments are usually retrospective, this one specified prospective application due to the changed legal position.
Irrationalities in giving Padma awards damage their sanctity - T. N. PandeyD Murali ☆
Irrationalities in giving Padma awards damage their sanctity - T. N. Pandey - Article published in Business Advisor, dated May 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...D Murali ☆
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax (MAT) - T. N. Pandey - Article published in Business Advisor, dated June 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Updates on Circulars and Notifications - V. K. SubramaniD Murali ☆
Updates on Circulars and Notifications - V. K. Subramani - Article published in Business Advisor, dated June 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...mayaclinic18
Whatsapp (+971581248768) Buy Abortion Pills In Dubai/ Qatar/Kuwait/Doha/Abu Dhabi/Alain/RAK City/Satwa/Al Ain/Abortion Pills For Sale In Qatar, Doha. Abu az Zuluf. Abu Thaylah. Ad Dawhah al Jadidah. Al Arish, Al Bida ash Sharqiyah, Al Ghanim, Al Ghuwariyah, Qatari, Abu Dhabi, Dubai.. WHATSAPP +971)581248768 Abortion Pills / Cytotec Tablets Available in Dubai, Sharjah, Abudhabi, Ajman, Alain, Fujeira, Ras Al Khaima, Umm Al Quwain., UAE, buy cytotec in Dubai– Where I can buy abortion pills in Dubai,+971582071918where I can buy abortion pills in Abudhabi +971)581248768 , where I can buy abortion pills in Sharjah,+97158207191 8where I can buy abortion pills in Ajman, +971)581248768 where I can buy abortion pills in Umm al Quwain +971)581248768 , where I can buy abortion pills in Fujairah +971)581248768 , where I can buy abortion pills in Ras al Khaimah +971)581248768 , where I can buy abortion pills in Alain+971)581248768 , where I can buy abortion pills in UAE +971)581248768 we are providing cytotec 200mg abortion pill in dubai, uae.Medication abortion offers an alternative to Surgical Abortion for women in the early weeks of pregnancy. Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman
Is the mention in assessment order a condition to stop initiation of reassessment proceedings on the same issue? - V. K. Subramani
1. Volume VIII Part 6 September 25, 2014 10 Business Advisor
Is the mention in assessment order a
condition to stop initiation of
reassessment proceedings on the same
issue?
V. K. Subramani
If you ask me to rank top three legal provisions of the
Income-tax Act, 1961 which are disliked by the taxpayers,
my answer would be one, section 132 dealing with search
and seizure; two, section 133A meant for survey; and
three, section 148 meant for reopening of assessment.
Reopening of assessment means an assessment was
completed earlier but with escapement of income
chargeable to tax under the Act. It also includes a case
where the taxpayer omits to file the return and the tax
officers resort to this provision for assessing the income due to non-
compliance with the legal requirement of filing the return of income by the
taxpayers. In the case of assessees engaged in business, in particular,
reassessment would generally mean an assessment completed already but
later on it is found that the income chargeable to tax has escaped
assessment or a claim excessively allowed or the income was assessed at too
low a rate or the income has been subjected to excessive relief.
This write-up discusses what the scope for reopening the assessment is
when an assessment has been completed under section 143(3). If the
Assessing Officer has not discussed a point in the assessment records
though materials were available on record whether a reassessment is
possible or it would amount to change of opinion?
This write-up hinges on the Full Bench decision of the Delhi High Court in
the case of CIT v. Usha International Ltd (2012) 348 ITR 485 (Del).
Issues involved
A reference was made to the Full Bench in respect of the following
substantial questions of law:
(i) What is meant by the term ―change of opinion‖?
2. Volume VIII Part 6 September 25, 2014 11 Business Advisor
(ii) Whether assessment proceedings can be validly reopened under
section 147 within four years if an assessee has furnished full and
true particulars at the time of original assessment with reference to
income alleged to have escaped assessment and whether and when
in such cases reopening is valid or invalid on the ground of change of
opinion?
(iii) Whether the bar or prohibition under the principle of ―change of
opinion‖ will apply even when the Assessing Officer has not asked
any question or query with respect to an entry/ note, but there is
evidence and material to show that the Assessing Officer had raised
queries and questions on other aspects?
(iv) Whether and in what circumstances section 114(e) of the Evidence
Act can be applied and it can be held that it is a case of change of
opinion?
The court held that the questions relate to interpretation of section 147 and
hence the factual aspects of the case need not be elaborated nor be taken
cognisance of, for deciding the issue.
First, the court examined section 147 and also the assessment under
section 143(3). It held that where the regular assessment under section
143(3) is not made, then there is no bar in issuing notice for triggering
reassessment provisions. Hence, intimation under section 143(1) is open-
ended and reassessment could be resorted to, freely. It cannot be called
‗change of opinion‘ since in intimation under section 143(1), there is no
formation of opinion. It was so concluded by the apex court in the case of
Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P) Ltd (2007) 291 ITR 500 (SC).
However, for reopening an assessment made under section 143(3), the
following conditions have been enumerated by the Delhi High Court in the
Usha International case (Supra):
(i) The Assessing Officer must form a tentative or prima facie opinion on
the basis of material that there is under-assessment or escapement
of income.
(ii) He must record the prima facie opinion into writing.
(iii) The opinion formed is subjective but the reasons recorded or the
information available on record must show that the opinion is not a
mere suspicion.
3. Volume VIII Part 6 September 25, 2014 12 Business Advisor
(iv) Reasons recorded and/ or the documents available on record must
show a nexus or that in fact they are germane and relevant to the
subjective opinion formed by the Assessing Officer regarding
escapement of income.
(v) In cases where the first proviso applies, there is an additional
requirement that there should be failure or omission on the part of
the assessee in disclosing full and true material facts. The
Explanation stipulates that mere production of books of account
or other documents from which the Assessing Officer could
have, with due diligence, inferred material facts does not
amount to ‘full and true disclose of material facts’. (emphasis
supplied)
The Court firstly held that the question of change of opinion would arise
when the Assessing Officer forms an opinion and decides not to make an
addition or holds that the assessee is correct and accepts his position or
stand.
The Delhi High Court referred to catena of decisions such as CIT v.
H.P.Sharma (1980) 122 ITR 675 (Del); CIT v. Eicher Ltd (2007) 297 ITR 310
(Del); Consolidated Photo & Finvest Ltd (2006) 281 ITR 394 (Del); CIT v
Kelvinator of India Ltd (2002) 256 ITR 1 (FB); K.L.M Royal Dutch Airlines v.
Asstt DIT (2007) 292 ITR 49 (Del); and Asstt. CIT v. Rajesh Jhaveri Stock
Brokers (P) Ltd (2007) 291 ITR 500 (SC). Its analysis could be stated as
situations given below.
(i) Situaion-1: Reassessment proceedings can be validly initiated in
case the return is processed under section 143(1) since there is no
opinion formed on processing of return and hence the question of
change of opinion does not arise.
(ii) Situation-2: Reassessment proceedings could be invalid where the
assessment order records the issue and was decided in favour of the
assessee. It amounts to change of opinion.
Only recourse in such case would be to invoke section 263 for revising
the order which is erroneous and prejudicial to the interests of
revenue.
(iii) Situaion-3: Reassessment proceedings will be invalid where a query
is raised and answered by the assessee and the Assessing Officer
4. Volume VIII Part 6 September 25, 2014 13 Business Advisor
does not make any addition in the assessment order. In this case
also section 263 could be invoked to set right the erroneous order.
Distinction between erroneous understanding of AO and emergence of
new facts
If new facts, material or information comes to the knowledge of the
Assessing Officer after the assessment was made and which were not
available at the time of the assessment order, the principle of ―change of
opinion‖ will not apply.
Yet another important observation of the court was that for reopening the
assessment, for recording the reasons it is not necessary that the Assessing
Officer should have finally ascertained escapement of income by recording
conclusive findings. The final ascertainment of escaped income could take
place when the final or reassessment order is passed. At the time of
invoking reassessment provisions, the reasons recorded based on the
materials available facilitate subjective opinion formed by the Assessing
Officer regarding escapement of income.
An incorrect appreciation of the treatment of receipt or income will not give
any second chance to the Assessing Officer for reopening the case. A
possible remedy is in section 263 for Commissioner to revise the said order.
However, a new fact coming to light will provide definite scope for triggering
reassessment provisions.
Within and beyond 4 years
As per the first proviso to section 147, no action can be taken after the
expiry of four years from the end of the relevant assessment year unless any
income chargeable to tax has escaped assessment by reason of failure on
the part of the assessee to disclose fully and truly all material facts
necessary for his assessment.
In this context, reference was made to Kelvinator of India Ltd case (supra)
where the Full Bench rejected the submission of the Revenue that the
reassessment proceedings would be justified if the assessment is silent or
does not record reasons or analysis of material on record. The Revenue
‗Opinion‘ is formed on facts. ‗Opinion‘ formed or based on wrong and
incorrect facts which are belied and untrue do not get the protection and
cover under the principle of ―change of opinion‖.
5. Volume VIII Part 6 September 25, 2014 14 Business Advisor
propounded the concept of non-application of mind by the assessing
authority. The Court held when an order under section 143(3) is passed a
presumption could be raised that the order was passed after application of
mind. Reference was made to section 114(e) of the Indian Evidence Act,
1872. It was held that if the Revenue‘s contention is accepted it would
provide premium to the assessing authority exercising quasi-judicial
function to take benefit out of its own wrong, i.e. failure to discuss or record
reasons in the assessment order.
The court in Usha International case (supra) held that there cannot be
deemed formation of opinion when the particular subject matter, entry or
claim is not examined.
It drew the distinction between failure to make full and true disclosure to
estop reopening of the case by holding that only where the time period of
four years has elapsed such criteria need to be looked into. Where the
reassessment is resorted to within four years it held that the first proviso to
section 147 will not apply. Explanation 1 stipulates that mere production of
books of account from which the Assessing Officer with due diligence could
have inferred facts does not amount to true and full disclosure.
When the proviso is not applicable, the pre-condition that the
assessee had disclosed fully, truly all material facts at the time of
assessment need not be looked into.
With regard to section 114(e) of the Indian Evidence Act the court held that
it is a general provision dealing with presumption of facts, inferences drawn
from facts, patterns drawn from experience and observations based upon
habits of the society, human action, usages and ordinary course of human
affairs and conduct. The presumption is no evidence or proof. It only shows
on whom the burden of proof remains. It is a permissive provision and not a
mandatory provision. As a permissive provision it enables the judge to
support his judgment but there is no scope of presumption when facts are
known.
Dissenting note
Hon‘ble Judge R. V. Easwar with regard to the judgment of the court
concurred with the decision of the Full Bench as regards the first question.
However, he held that the assessment proceedings cannot be validly
reopened under section 147 even within four years, if the assessee has
furnished full and true particulars at the time of original assessment with
reference to income alleged to have escaped assessment, if the original
assessment was made under section 143(3).
6. Volume VIII Part 6 September 25, 2014 15 Business Advisor
Learned Judge referred to A. L. A. Firm v. CIT (1991) 189 ITR 285 and viewed
that if the Assessing Officer had considered the materials in the original
assessment and formed an opinion then he would be powerless to reopen
the assessment. He fully relied on Kelvinator of India Ltd case (Supra) to hold
that once an assessment order is framed under section 143(3) and the
assessee has undisputedly furnished full and true particulars at the
time of original assessment, then it is presumed that the Assessing
Officer has formed an opinion and if he reopened the assessment say
within 2 years without proving any failure on the part of the assessee
to furnish full and true particulars then that it would amount to a
change of opinion which is not permissible in law.
As regards the application of section 114(e) of the Indian Evidence Act he
held that it could be applied to an assessment framed under section 143(3)
of the Act provided there has been full and true disclosure of all material
facts at the time of original assessment.
Conclusion
The decision of the Delhi High Court has considered its own precedents and
the apex court decision on the issue of reopening of assessment after
completion of regular assessment under section 143(3). If the Assessing
Officer has information on record and has not recorded his opinion in the
assessment order, it is held that there was no opinion and much less the
‗change of opinion‘, hence can reopen the case.
If the assessment order contains the opinion of Assessing Officer then the
Assessing officer is helpless and hence cannot reopen the case. The only
recourse then is section 263.
Where the material is available on record and Assessing Officer has not
formed an opinion and has not discussed the same in the assessment order,
the controversy continues.
In the Full Bench decision it is stated there is no deemed formation of
opinion. Mere production of books of account does not amount to full
disclosure. The first proviso was interpreted to hold that within four years,
the Revenue need not prove that there was failure on the part of the
assessee to disclose fully and truly all material facts. It is stated that only
after four years for reopening the case such burden has to be discharged by
the Revenue, notwithstanding contrary view expressed in Kelvinator of India
Ltd case (supra).
(V. K. Subramani is Chartered Accountant, Erode)