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Showing posts from June, 2015

S. 143(3)153A Addition made solely on the basis of a disclosure and without any incriminating material is not sustainable if facts show that disclosure was under duress

Pursuant to a search and seizure operation u/s 132, the assessee made a disclosure of unaccounted income of Rs. 20 crore. He later claimed that the disclosure was not voluntary but was because the assessee was under tremendous pressure and harassment in the form of repeated search action, survey and freezing of assets. It was also claimed that no incriminating material was found during the search. It was also claimed that the disclosure was "pro tem", meaning tentative and subject to correction. The AO & CIT(A) rejected the claim. On appeal by the assessee to the Tribunal HELD allowing the appeal:(i)Whether the disclosure was voluntary or given under coercive circumstances. Conclusion: The contentions raised by ld. Counsel for the assessee lead to a clear inference that the disclosure of the assessee cannot be regarded as voluntary. The pressure of restrained DDs. of 31.48 crs. against a disclosure tax liability of about 7 crs is palpable. It has the propensi…

Levy of late fee on late filing of TDS return

Amendment in section 200A by Finance Bill 2015 w.e.f. 01-06-2015.
Till 31-5-2015 Income tax department has no power to process TDS return U/s 200A to levy TDS late fee U/s 234E But w.e.f. 1-6-2015 as per Sec. 200A income tax department can levy late fee U/s 234E @ Rs. 200/- per day on delayed filing of TDS return. Therefore if any late fee is levied before 1-6-2015 appeal can be filed for this or rectification application U/s 154 can be filed to get it cancelled. Even if due to mistake any late fee U/s 234E is paid then refund will be granted of such excess late fee.ITAT Amritsar has given a decision on this subject. Before going to the decision, first we are reproducing the  amendment in section 200A wef 01.06.2015 .
In section 200A of the Income-tax Act, in sub-section (1), for clauses (c) to (e), the following clauses shall be substituted with effect from the 1st day of June, 2015, namely:— 
"(c) the fee, if any, shall be computed in accordance with the provisions of section 234E…

Mumbai ITAT allows set-off of long-term capital loss arising from sale of STT paid equity shares

Mumbai ITAT allows set-off of long-term capital loss arising from sale of STT paid equity sharesJune 12, 2015[2015] 58 115 (Mumbai - Trib.) IT : Long-term capital loss of sale of equity shares attracting STT is allowed to be set off against long term capital gain on sale of land in accordance with section 70(3)• Section 10(38) excludes in expressed terms only the income arising from transfer of Long term capital asset being equity share or equity fund which is chargeable to STT and not entire source of income from capital gains arising from transfer of shares.• It does not lead to exclusion of computation of capital gain of Long term capital asset or Short term capital asset being shares.• Accordingly, Long term capital loss on sale of shares would be allowed to be set off against Long term capital gain on sale of land in accordance with section 70(3). --
M/s N.K. Goel & Bros.
Chartered Accountants
CA Yashu Goel

Open Letter to the Sales Tax Bar Association, New Delhi.

03.06.2015 Sales Tax Bar Association New Delhi
It is the need of the hour for the Bar to create an online repository for all the judgments, circulars, notifications etc. and allow ease of access to all its members 24 x 7 to all the material necessary for purpose of practice.

The Dvat Act and Rules (Bare Act) should be made available online with up to date amendments for easy reference.
A Newsletter service should be initiated from the office of the BAR Association for regular and crucial updates for the members.
Social Media Such as twitter, Facebook, WhatsApp etc. should be used to spread awareness at large, this will not only benefit the members but also create a Brand Image of the STBA.
A separate committee responsible for providing updates should be constituted and be made responsible for giving invaluable and to the point information for the members and not just for the sake of giving information.
Hoping that these suggestions shall bring about the much needed required changes for the be…

Effective rates of service tax wef 01.06.2015