CAPITAL adequacy ratio—the minimum amount of capital banks have to set aside while lending—of Indian banks would continue to remain higher than the minimum regulatory requirement of 9% even if sticky loans, or NPAs, were to more than double. Addressing a seminar at the the London Business School on Thursday, RBI deputy governor Rakesh Mohan [...]

The Supreme Court has held that freight and insurance charges are not to be taken into account in determining the value of goods for imposing excise duty. A Bench headed by Justice S B Sinha, while dismissing the Commissioner of Central Excise’s appeal, asked the (Excise) Department to pay Rs 25,000 to a manufacturer of [...]

Sub-section (2) of section 143 of the Income-tax Act provides that the notice under this sub-section shall be served on the assessee within a period of twelve months from the end of the month in which the return is furnished. Further, the service of such notice must be affected in a manner laid down in [...]

Sub-section (1) of section 271 of the Income-tax Act empowers the Assessing Officer to levy penalty for certain offences listed in that sub-section. It is a requirement that the Assessing Officer is required to be satisfied before such a penalty is levied. In the context of levy of penalty under section 271 of the Income-tax [...]

There is a prescribed dispute resolution mechanism under the Income-tax Act. In this regard, the Central Board of Direct Taxes have issued instructions from time to time directing Departmental Officers to not file an appeal if the tax effect is less than the monetary limit prescribed by it.  The Hon’ble Supreme Court in M/s. Berger [...]

Under the Income-tax Act, whenever a search is conducted under section 132 or books of account or other documents or any assets are requisitioned under section 132A, provision of section 153A comes into operation. This section, inter-alia, provides for assessment or reassessment of total income in respect of each assessment year falling within a period [...]

Amendments in respect of reassessment proceedings to clarify correct legislative intention  The Income-tax Act empowers assessing officer to reopen a case under section 148 if he has reason to believe that any income has escaped assessment. Adequate safeguards have been provided so that such power of reopening is not arbitrarily used by the assessing officers. The [...]

Correction of arithmetical mistakes and adjustment of incorrect claim under sub-section (1) of section 143 through Centralised Processing of Returns   Generally, tax administrations across countries adopt a two-stage procedure of assessment as part of risk management strategy. In the first stage, all tax returns are processed to correct arithmetical mistakes, internal inconsistency, tax calculation [...]

CASE LAW DETAILS Decided by:. ITAT, MUMBAI BENCH `C’ MUMBAI  In The case of: ITO v.  Pushya Properties (P.) Ltd.  Appeal No. : ITA No. 2906/m/08 Decided on: March 6, 2009 SUMMARY OF CASE LAW Section 23(1)(b) gives limited power to the Assessing Officer to examine whether rent received is more than the reasonable rent [...]

The Central Board of Direct Taxes (CBDT) had issued circular number 9, dated 20th December, 2007, clarifying therein certain issues relating to levy of FBT on ESOPs. One of the clarifications was that if FBT on account of share allotted or transferred under ESOPs has been paid by the employer, but recovered from an employee, [...]