"27 July 2019" Archive

Interchangeability of PAN Card and Aadhaar Card – One step forward towards a rocky surface

Permanent Account Number (‘PAN’) is a 10-digit unique identification number issued by the Income Tax department to all judicial persons identifiable under the Income Tax Act, 1961 (‘the Act’). The primary objective of the PAN is to bring a universal tax identification to all the financial transactions and prevent tax evasion by ke...

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Posted Under: Income Tax |

Payment of Gratuity to employees under Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955

A. Applicability The Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955 lays downs an elaborate scheme applicable to Working Journalists. “Working Journalist” means a person whose principal avocation is that of a journalist and includes an leader-writer, news editor, sub-editor, feature-writer, copy-tes...

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Posted Under: Income Tax |

36th GST Council Meeting- Changes in GST Law, Due dates and Rates

NA (27/07/2019)

GST rate on all Electric Vehicles reduced from 12% to 5% and of charger or charging stations for EVs from 18% to 5%. Hiring of electric buses by local authorities exempted from GST.Changes in GST rates shall be effective from 1st August, 2019...

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Section 194IA TDS on transfer of immovable property

Prior to the introduction of section 194-IA, the transaction of immovable property was usually undervalued and under-reported. With a view to improve reporting of such transaction and to curb the black money transactions to some extent, section 194-IA of the Income Tax Act was inserted. Provisions of section 194-IA of the Income Tax Act,...

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Posted Under: Income Tax |

The Times They Are A-Changing

The present article is based on the appellate order passed by me as Commissioner (Appeals). Relevant extracts from my order have been reproduced. However, the name of the assessee has been muted. This order was widely appreciated and the author was awarded the title of 'BEST INNOVATOR' in the charge of Pr. CCIT, Gujarat for the exceptiona...

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Posted Under: Income Tax |

Assessment with notice u/s 143(2) prior to filing of return of income is invalid

PR. CIT Vs Marck Biosciences Ltd. (Gujarat High Court)

Notice under section 143(2) was issued prior to the filing of the return of income which was invalid and the assessment order passed would also be invalid....

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Tracing Powers of AO to Make Assessment U/s 153A W.R.T Presence or Absence of Incriminating Material

Ajay Kumar Srivastava Principal Commissioner of Income Tax (Central), Lucknow taxalogue@incometax.gov.in Sh. Ajay Kumar Srivastava is an IRS officer of 1988 batch currently posted as Principal Commissioner of Income Tax (Central), Lucknow. He has done M.Sc(Biochemistry) and has worked in I.T Deptt at various levels dealing with assessmen...

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Posted Under: Income Tax |

Section 234E fee for delay in TDS statement filing leviable on each flat purchase  instead of single transaction

Cornerview Construction & Developers Pvt. Ltd. Vs ACIT (ITAT Mumbai)

When assessee itself had filed separate TDS statements in respect of the tax deducted at source relating to the respective flats, while processing such statements under section 200A, AO had to levy fee under section 234E taking into account the delay in filing each of the statements and the levy of fee prescribed under section 234E could ...

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“Borrowed Satisfaction” for “Reason to believe” for reopening U/s 148 of I.Tax Act 1961

Many a time reassessment proceedings are quashed or additions made in such proceedings are deleted by the Appellate Authorities much to the dismay of the Assessing Officers. One prime reason for such adverse appellate orders are on the ground of 'borrowed satisfaction' in much as the drafting of recorded reason to initiate the proceeding...

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Posted Under: Income Tax |

Addition for Unexplained cash credits cannot be made for doubt on source of credit

CIT Vs M/s. Sree Ganesh Trading Company (Kerala High Court)

CIT Vs M/s. Sree Ganesh Trading Company (Kerala High Court) Conclusion: AO was not justified in making addition to the income of assessee under section 68 on account of alleged unexplained credits as assessee-firm had proved identity, creditworthiness of the creditors from whom it had received credits and if AO had doubt on the source [&h...

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