F.No.275/29/2020-IT(B) -
(19/10/2020) -
Corrigendum to Order under section 119 of the Income-tax Act, 1961 dated 16.10.2020 for exercising power of intrusive or coercive action for recovery of tax demand by Assessing Officers or Tax Recovery Officers. F.No.275/29/2020-IT(B) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North Block, ...
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Shubh Share Broking Pvt. Ltd Vs ITO (ITAT Kolkata) -
Assessee needs to seek stay of outstanding demand since his Bank account has been attached by the department. Also he has financial stringency. Attachments to bank accounts withdrawn to enable assessee to pay tax demand....
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Once the e-Filed returns are processed and outstanding tax demand available in e-Filing portal, assessee is facilitated to submit the response against outstanding tax demand raised by CPC/AST. In this article we have discussed how a Taxpayer can submit online response against such Income Tax Demands :-...
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CBDT desires that all the work related to cleaning up of the tax demands and calculating the tax payable or refundable in respect of all eligible assesses under Vivad Se Vishwas Scheme is taken up on priority and completed by 31st August 2020. Also Read- CBDT directs all CIT(A) to dispose at least 80 appeals […]...
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Verify online notice/order issued by the Income Tax Department Now Taxpayer can verify notice/order issued by the Income Tax Department online quickly before proceed to response of notice/order. Step: – 1. Go to https://www.incometaxindiaefiling.gov.in/home and click on Notice/Order Issued by ITD Step: – 2. Taxpayer can search...
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Many times we received the intimation under section 245 stating that the refund which you have claimed in income tax return will be adjusted against the outstanding demand. In such case, most of the assesses got panic and have various doubts as to how they should respond to this intimation. Hence, today I am writing […]...
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The ITAT may, on an application made by the assessee and after considering the merits of the application, pass an order of stay in any proceedings relating to an appeal filed under section 253(1). If the ITAT is not able to dispose off the appeal under first proviso, the stay can be extended upto 365 […]...
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Supreme Court has directed the income tax department to refund an amount of Rs.733 Crores to Vodafone within four weeks A two-judge bench of the Supreme Court has directed the income tax department to refund an amount of Rs.733 Crores to Vodafone within four weeks subjected to any proceedings that the Revenue may deem appropriate [&hellip...
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Vodafone Idea Ltd Vs ACIT (Supreme Court of India) -
Uptill AY 2016-17, if a scrutiny notice u/s 143(2) is issued, the return is not required to be processed u/s 143(1) for grant of refund to the assessee however, from AY 2017-18 & onwards, a different regime is prescribed by Parliament by inserting section 241-A which required separate recording of satisfaction on part of AO that having ...
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Many a times there are Mis match between TDS shown in Form 16 / Form 16A and actually deposited by Employer / Other party. However at the time of filing Income Tax Return the assessee claims full TDS as per TDS certificate received. Due to this at the time assessment CPC / AO send intimation of Demand. Further there are various reason and...
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Whenever assessing officer issues assessment order u/s 143(3), 147, 271(1)(c) along with it notice of demand u/s 156 is also raised. This demand notice is usually required to be paid within 30 days of service/receipt of the same. In case assessee fails to pay the demand within the required time, he/she becomes assessee in default....
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Taxpayers can view the details of their Arrear Demand in 'My Account' as communicated by their jurisdictional Assessing Officers to CPC. Steps to View Income tax Demand / Arrears Payable Online 1. Login on https://incometaxindiaefiling.gov.in/portal/index.do 2. Go to 'My Account' and Click on 'Current Status of Arrear Demand' as depict...
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ITBA- Assessment - Demand Adjustment by AO u/s 245 Instruction No.13 -
(19/02/2020) -
The functionality of demand adjustment by AO u/s 245 can be accessed while passing assessment order, rectification order into the ITBA system. In case, refund is determined in Computation of Assessment, Rectification then, following 4 below mentioned options regarding demand adjustment u/s 245 shall be available through ITBA....
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Month of February is the Valentine month and everyone in this world must grapple with their respective valentine. Taxman will also be busy with their valentine i.e. Recovery of the tax arrears whereas tax practisoners will also be busy with their valentine i.e. Protection of assesse and how to prevent unjust recovery of such exorbitant [&...
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Outstanding Income Tax demand arises when taxpayer’s tax as per Income Tax Return is less than the tax payable as per Income Tax Department. ITD sends the intimation under Section 143(1) asking for outstanding demand along with the calculations, stating the reason why you need to pay more tax. You can go through the calculations [&h...
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Second schedule to Income Tax Act, provides for recovery procedure, providing for the following modes of recoveries i. Attachment/sale of movable/ immovable property, ii. Appointment of receiver for management of movable/ immovable properties. iii. Arrest and detention of defaulter Procedure of Procedure of recovery under Income Tax Act, ...
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Yesterday, the dream day for all professionals, when at last clients has provided their details for Tax Audits and my entire professional colleague has rendered their best services to the nation and their clients. With the completion of this ITR Filing season, now Income Tax Department is processing our Filed ITR’s and starts sending in...
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M/s. Shriram Finance Vs Pr. CIT (Madras High Court) -
Since CIT rejected assessee’s application for stay of recovery of demand merely relying of CBDT instruction which was cryptic and non-speaking as CBDT circular/instruction could not serve as a series of guidelines in the matter of grant of stay, therefore, the matter was remanded back to CIT for disposal afresh in accordance with law....
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Smt. Kalpana Ashwin Shah Vs ACIT and Ors. (Bombay High Court) -
Smt. Kalpana Ashwin Shah Vs ACIT and Ors. (Bombay High Court) 1. The Petitioner has challenged the orders passed by the Assessing Officer as well as the Commissioner of Income Tax, requiring the Petitioner to deposit 20% of the disputed tax pending Appeal against the order of the assessment subject to which the remaining recovery [&hellip...
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Time to Revisit the Conventional Coercive Recovery Measures of Tax Collection by Revenue Authorities!! As per the existing Legislative framework of the Direct Taxation Laws in our Country, the tax collection measures can broadly be classified into Pre-Assessment tax collection measures and Post Assessment tax collection measures. The pre-...
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Draconian Misinterpretation of Sec. 12A(1)(ba) of the Income Tax Act, 1961 by CPC (Income Tax Centralized Processing Center) shall lead to Huge Tax Demands The Finance Act, 2017 has inserted a new provision sec. 12A(1)(ba) w.e.f. 01/04/2018 (applicable from A.Y. 2018-19 and onwards as follows: “Conditions for applicability of sections ...
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We have noted the internal instruction No. F.NO. D.01380/02/2018-IT(B) Dt. 26th March, 2019 issued by Member, CBDT and Special Secretary to Government of India, Instructing all Pr. CITs across India to take all possible actions with respect to recovery of arrears and current demand to achieve shortfall of 14.9% in the targeted revenue col...
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Applications seeking of stay of demand during the pendency of first appeal before CIT (Appeals) are generally rejected in a casual manner causing considerable hardships to the assessee. The assessing officers insist to deposit 20% deposit of tax demand as per July 2017 revised guidelines as precondition to grant a stay. However, the same ...
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Greater Mohali Area Development Authority Vs. DCIT (ITAT Chandigarh) -
With this common order we will dispose of the captioned applications of the assessee seeking stay for the recovery of outstanding tax demand for assessment year 2009-10 & 2013-14 respectively. ...
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Google India Private Limited Vs. DICT (Karnataka High Court) -
In the circumstances, a direction is issued to the Tribunal to dispose of the appeal in an expeditious manner i.e., on or before 31/01/2018. It is needless to observe that in view of the specific direction issued by this Court for expeditious disposal of the appeal by the Appellate Tribunal, both parties are directed to co-operate with t...
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M/s. Google India Pvt. Ltd. Vs Deputy Commissioner of Income-tax (ITAT Bangalore) -
M/s. Google India Pvt. Ltd. Vs DCIT (ITAT Bangalore) The present stay petition is filed seeking further extension of the stay of demand. Admittedly there is change of the circumstances from the first stay order, since this Tribunal had disposed of the appeal involving identical issue for earlier years against the assessee. Therefore, the ...
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Kalaignar TV Private Limited Vs. The Principal Commissioner of Income Tax (Madras High Court) -
This Court finds that when the petitioner had agreed to comply with the payment of disputed tax at the rate of Rs. 50 lakhs per month, they are bound to comply with such an undertaking. Now arguing before this Court pleading their financial incapacity or requesting this Court to examine the merits of the assessment is unsustainable, as th...
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CIT Vs. Oryx Finance and Investment (P) Ltd. (Bombay High Court) -
On reading the provisions of section 221 conjointly with the definition of “tax” as detailed under section 2(43), the irresistible conclusion that can be drawn is that the phraseology tax in arrears as envisaged in section 221 of the Act would not take within its realm the interest component. ...
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Dt. No. 683/CIT/(A&J)/2015 -
(12/10/2017) -
As per the Central Action Plan issued for the F.Y. 2017-18, all pending appeals having tax effect of Rs. 50 crore or more are to be dispose of up to 31st December, 2017 as mentioned at Para (i) of Action Plan of chapter-III of the Central Action Plan which is reproduced as under: -...
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Jagdish Gandabhai Shah Vs principal Commissioner of Income Tax (Gujarat High Court) -
High Court held that Considering the Office Memorandum F. No. 404/72/93- ITCC dated 29thFebruary 2016 as a whole, there is no such requirement of pre-deposit of 15% of the disputed demand either at the time of submitting stay application or before the stay application of the assessee is considered on merits. ...
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M/s Andrew Telecommunications India Pvt. Vs Principal Commissioner of Income Tax (Bombay High Court at Goa) -
Rule made returnable forthwith. The learned Counsel for the respondent, waives service. Heard finally by consent of parties. The petitioner is a Company engaged in the business of manufacturing base station antennas, microwave antennas, R.F. cables, jumpers and connectors and trading in related products....
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Flipkart India Private Limited Vs ACIT (Karnataka High Court) -
Undoubtedly, the present case raises the issue of balancing the interest of the Revenue, and the interest of an Needless to say, the Revenue does have the right to realise the assessed incometax amount from the assessee. However, while trying to realise the said amount, the Revenue cannot be permitted, and has not been permitted by the Ci...
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F. No. 385/17/2016-IT (B) -
(17/03/2017) -
On review of the position of collection out of arrear and current demand as on 28.02.2017, it is noted that the performance of the Department as a whole and of almost all Pr. CCIT Regions individually is much below the targets given in the Central Action Plan 2016-17....
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F.No.385/17/2016-IT (B) -
(19/12/2016) -
It may be pointed out that the target of cash collection from arrear demand was fixed very modestly at Rs.53,981 crore in the Central Action Plan for 2016-17 as against very large amount of arrears outstanding. However. till the end of November, 2016...
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Press Release : 2016-2017/1087 -
(02/11/2016) -
Reserve Bank of India has appealed to income tax assessees to remit their income tax dues sufficiently in advance of the due date....
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The Dispute Resolution Scheme, 2016 has been introduced through Union Budget, 2016. The scheme has been brought with the object to collect tax arrears, clear pendency of appeals, achieve reduction in administrative costs etc. In most of the cases apart from filing appeal, the demand amount, either partly or fully, is generally deposited ...
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The key result areas for widening of tax-base are as under: (i) Improving compliance to TDS/TCS Provisions (ii) Effective collection of information about high value transactions (iii) Efficient handling of information without valid PAN (iv) Ensuring compliance from identified non-filers through various methods...
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Since the very beginning, the focus needs to be on the reduction of Arrear Demand by de-duplication of the entries and cleansing the arrear demand data. Priority should be accorded to reduce entries of amounts less than Rs. 10000/- and those pending for more than 2 years. These steps have already been reiterated in the SOP several times. ...
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The Income Tax Department has launched an Arrear Demand Verification Portal at https://incometaxindiaefiling.gov.in/ which can be accessed by the assessees with their respective user-id. This portal provides various options in the assessee’s dashboard for settling/modifying the outstanding demand against the assessee’s name....
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Khandelwal Laboratories Pvt. Ltd. Vs DCIT (Bombay High Court) -
High Courtheld that the any action of revenue to recover taxes adopting coercive means is not permissible till the assessee’s application for stay under section 220(6) of the Act is disposed of. Further, an application for stay should be disposed off by a speaking order....
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Dimension Data Asia Pacific Pte Ltd Vs DCIT (ITAT Mumbai) -
The Tribunal granted 100 percent stay of demand because (a) the assessed income was more than 10 times the returned income. (Instruction 96 of 1969 was relied upon) & (b) The stand taken by the AO was at variance with the stand taken by TPO....
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NA -
(11/03/2016) -
The Central Board of Direct Taxes had issued directions to the field offices that taxpayers whose tax has been deducted at source but not deposited to the Government’s account by the deductor, will not be asked to pay the demand to the extent tax has been deducted from his income....
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F.No.312/109/2015-OT -
(07/03/2016) -
In cases where that tax payer has contested the demand, CPC would issue a reminder to the assessing officer about the contention of the taxpayer, asking him to either confirm, or make appropriate changes to the demand within thirty days. In case no response is received from the AO within thirty days, CPC would issue the refund without any...
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With a view to streamline the process of grant of stay of demand when the case of the taxpayer is pending before Commissioner (Appeals) and to standardize the quantum of lump sum payment required to be made by the assessee as a pre-condition for stay of demand disputed, the Central Board of Direct Taxes has issued fresh guidelines to the ...
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Under the existing provisions of section 281 B the Assessing Officer may provisionally attach any property of the assessee during the pendency of assessment or reassessment proceedings, for a period of six months with the prior approval of the income- tax authorities specified therein, if he is of the opinion that it is necessary to do so...
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Income-tax Department is also issuing instruction making it mandatory for the assessing officer to grant stay of demand once the assesse pays 15% of the disputed demand, while the appeal is pending before Commissioner of Income-tax (Appeals). ...
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F.No.404/72-93-ITCC -
(29/02/2016) -
The CBDT has issued Office memorandum F.No.404/72-93-ITCC dated 29.02.2016 by which it has revised Instruction No. 1914 dated 21.03.1996 and issued fresh guidelines for stay of demand at the first appeal stage....
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Under Section 281B, AO has the power to provisionally attach the assets, with the approval of the CIT/CCIT. Such attachment is supposed to be temporary, with a limit of 6 months, extendable to a maximum of 24 months. However, in view of the fact that in many such cases, the proceedings itself get stayed as a result of applications made by...
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Under the existing regime for recovery of demand, Assessing Officers insist upon collecting disputed demands even when they are in appeal. The situation is aggravated in years when the revenue collection targets are ambitious. In practice, this is leading to serious hardship to the taxpayer particularly in cases where there is high-pitche...
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NA -
(10/10/2015) -
There have been some reports in the media yesterday and today that the Income tax Department has issued fresh demand notice to Nokia India. These reports are erroneous. An assessment order was passed in the case of Nokia India Pvt Ltd for Assessment Year 2010-11 in August 2015. The tax demand raised by this order was primarily based on is...
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e-facility to view tax and computation sheet for demand raised by AO The department has provided a taxpayer friendly feature of ‘e-facility to view tax and computation sheet for demand raised by AO’. This facility enables assessees to view tax and computation sheet for demand raised by AO in the e-filing portal. The assessee c...
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Every taxpayer should check his account with Income tax department. In this account he should check his previous and current year’s status, and thereafter take appropriate decision. Also one should note that the income tax department’s website is updated continuously, therefore one should recheck status on timely basis....
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The following online services are available at the e-filing website of the Income Tax Department for returns filed electronically (Logon to www.incometaxindiaefiling.gov.in with your user id and password) 1. History of e-filed returns You can view all your e-filed returns by Acknowledgement number, along with all status details like recei...
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CBDT issues a Circular for Early and Satisfactory Resolution of Taxpayers’ Grievances Relating to Verification and Correction of Tax Demand Outstanding against them. The Income Tax Department has taken note of grievances of taxpayers arising on account of outstanding tax demand which may be inaccurate due to non-reporting or delayed rep...
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Moving ahead with its strategy of ‘naming and shaming’ large tax defaulters, the Income Tax department today came out with a list of 31 defaulters who owe over Rs 1,500 crore to the government. In March 2015 Department has released list of 18 Income tax defaulters who owe over Rs 500 crore in tax to the […]...
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Total amount of direct taxed arrear demand as on 31.10.2014 is Rs. 6,15,295 crore. An amount of Rs. 23,653 crore has been collected/recovered during the period 1.4.2014 to 31.10.2014. The target for cash collection out of arrear demand by the field authorities for the FY 2014-15 has been fixed at Rs. 41,997 crore. Out of […]...
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Revenue Targets in the Case of Indirect Taxes for the Current Financial Year 2014-15 are Challenging one but are Very Much Achievable: FM The Union Finance Minister, Shri Arun Jaitley said that the revenue targets in the case of indirect taxes for the current financial year 2014-15 are challenging one but are very much achievable. [&helli...
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PRESS NOTE NO.402/92/2006-MC -
(17/04/2014) -
The CBDT has further noted that many taxpayers are committing mistakes while furnishing their tax credit claims in the return of income. Such mistakes include quoting of invalid/incorrect TAN; quoting of only one TAN against more than one TAN tax credit; furnishing information in wrong TDS Schedules in the Return Form; furnishing wrong ch...
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Sony India Pvt. Ltd Vs ACIT (Delhi High Court) -
Recently Delhi High Court has in the case of Sony India Pvt. Ltd vs. ACIT held that It is expected of from Assessing Officer, having rejected the stay application, to wait for a reasonable period before he takes coercive steps to recover the amounts ...
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Pending demands & increasing litigation are mainly arising due to the certain administrative lapses. An attempt has been made to list a few such issues which need to be looked into. ...
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This Note relates to the significance of the recent judgement of Gujarat High Court in the case of Tax Recovery Officer Vs Industrial Fin. Corpn. of India [2012] 346 ITR 11 (Guj), which deals with the interpretation of the provisions of section 281 of the Income-Tax Act, 1961 (the Act), relating to Certain transfers to be void. As per afo...
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It is a well-known fact that the Assessing Officers (AOs) in many cases make high-pitched assessments and raise huge uncalled for demands against the assessee, as a result thereof. It is also a well-known fact that after raising such uncalled for and unjustified high demands, the Revenue authorities take recourse to coercive measures for ...
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It has been reported in some sections of the press that the Central Processing Centre , Bangalore is sending notices for payment of taxes which are as small as Rs. 1/- , 4/- , 6/-, causing unnecessary hardship to assesses . It has been stated that when the refunds for amounts less than Rs. 100/- are not issued by the Income Tax Depar...
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CBDT Sets-up a Committee to Examine And Suggest Ways to Recover Income Tax Demand Classified Under the Categories 'Assessees not Traceable' and 'No Assets/Inadequate Assets for Recovery' In order to examine certain suggestions on Income tax Demand classified under the categories 'Assessees not traceable' and 'No assets/inadequate assets f...
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The government today informed the Supreme Court that it will set aside its order directing scam-hit information technology (IT) firm Satyam Computer to pay Rs 617 crore as income tax and will give a fresh hearing to the firm's plea challenging the tax demand. Attorney General Goolam E Vahanvati, appearing for the Central Board of Direct T...
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The Income Tax Department has slapped a tax demand of over Rs 450 crore on software giant Infosys Technologies for wrongfully claiming tax exemption on onshore services by declaring them as software exports, Parliament was informed today....
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British telecom major Vodafone today contested Rs 11,000 crore tax imposed by Indian authorities on its acquisition of Hutchison, saying it has no tax liability and will continue to take actions to defend itself. Vodafone International Holdings BV...
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M/s. KEC International Limited Vs Addl. Commissioner of Income Tax (ITAT Mumbai) -
The Court has made it clear that though there are no hard and fast rules regarding grant of stay, prudence, discretion and circumspection are called for and stay should not be granted as a matter of course. Considerations about balance of convenience, question of irreparable injury and implications to public interest have to be borne in m...
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M/s. Hotel Leela Venture Ltd Vs Agricultural Income Tax & Commercial (Kerala High Court) -
The assessee filed appeals before the Commissioner (Appeals) against the assessment orders for AYs 2004-05 to 2008-09. Though the appeals were ripe for hearing and the appellate authority had already posted the appeals for hearing on different dates, the AO without considering the pendency of the appeals issued demand notices...
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Mumbai Income Tax authorities expect to collect Rs 2,500 crore on accounts of the ongoing Vodafone case. The collection would help the department achieve its tax collection target for this fiscal, a department press release said here today. Mumbai zone has been given a target of over Rs 1,50,000 crore for FY 11....
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The government will arm income-tax officials with details about assets of individuals whose tax payments are pending, a move aimed at meeting the Rs 13,153-crore target for arrears collection this fiscal. ...
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Stud farm owner Hassan Ali Khan tops the list of direct tax defaulters in the country. The outstanding demand against Khan as on March 31, 2009, is a whopping Rs 50,345 crore. In a written reply in the Rajya Sabha on Tuesday, minister of state for finance S S Palanimanickam gave the names of Top 100 defaulters of direct taxes worth Rs 1....
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The Income Tax department is all set to move the Supreme Court for a final judgement on its tax claims of around Rs 2,000 crore (Rs 20 billion) in cases involving dividend stripping prior to 2002-03. The taxman had lost the case in the Bombay high court last year. Though the government in 2005 put […]...
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