Bringing you the Best Analytical Legal News
The Finance Act No. 02 of 2024, which came into effect on 01-09-2024, brought about significant amendments to the Income Tax Act. Among the key changes are revisions to Sections 148 and 148A, which pertain to the provisions for assessment and reassessment of income. In addition, Section 152 has been amended to introduce two new sub-sections.
The Bill has been approved by the Union Cabinet and awaits to be tabled in the Houses.
The Circular dated 17-10-2024 issued by the Central Board of Direct Taxe provides fresh guidelines for compounding of offences under the Income Tax Act.
“It merits notice that the phraseology used in Section 273B of the IT Act is such that no penalty can be imposed on an assessee under Section 271B for breach of the provisions, if he proves that there was ‘reasonable cause’ for the said failure.”
Arbitration Act, 1940 — S. 29 — Interest on interest or compound interest: Post award interest on interest awarded is not grantable
Justice B. V Nagarathna who is currently serving as a Judge of Supreme Court of India, formerly served as a Judge of Karnataka High Court until her elevation to the Supreme Court. Justice Nagarathna is also the potential contender for the first ever woman Chief Justice of India.
Energy, Power and Electricity — Electricity — Generation and Transmission/Supply/Distribution of electricity
Documents relating to proof of deduction under Section 54F of the Act; Bank statement showing payment for above deduction; Statement justifying sale consideration; Working of capital gain were all furnished by the assessee.
‘Although Genpact had alluded to the amended statutory regime that had come into existence and had informed the AO of the obligation to follow the procedure under Section 148A, no legal challenge was instituted to impugn the action commenced by notice dated 30-06-2021.’
Civil Procedure Code, 1908—Or. 7 R. 11—Rejection of plaint — Appeal against Trial Court’s decision allowing application for rejection
“There is no dispute regarding explanation given under Section 148 regarding information that can be relied upon by the Assessing Officer to reopen assessment of escaped income.”
“The reassessment notice was issued by ITO, Ward 69(1), New Delhi, under Section 148 and lacked jurisdiction as the jurisdiction was with ITO, Ward 4(1), Gurgaon. Hence, the subsequent assessment completed by ITO, Ward 4(1), Gurgaon, based on this notice was legally flawed.”
It is wholly insufficient to proceed to make an addition on the basis that CBIC is an apex body and information provided by it cannot be doubted, without even analyzing such information.
“Section 269-SS of the Income Tax Act, 1961 has a specific bar on receiving a sum more than 20,000/- from any other persons by way of loan or deposit.”
Civil Procedure Code, 1908 — S. 75(c), Or. 26 Rr. 10-A, 9 and 10: Direction of trial court to Director of Archaeological
“It is only once the Assessing Officer of the non-searched entity is satisfied that the material coming into its possession is likely to “have a bearing on the determination of the total income” that a notice under Section 153C would be issued.”
Arbitration and Conciliation Act, 1996 — S. 34: Objections to the award: Law summarised relating to Court’s power to review awards under
Supreme Court clarified that the legal position of a distributor and agent was not similar, for a distributor is an independent contractor, not being a communicator between principal and the third party unlike an agent, free from control of his employer.
“The information pertaining to an assessee cannot be granted under the Right to Information Act, 2005 in view of Section 138(1)(b) of the Income Tax Act, 1961.”