Issue of section 143(2) notice for section 147 assessment
Subject: Issue of section 143(2) notice for section 147 assessment
Category:  Income Tax
Asked by: Shefali Patel
Answered by:
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Date: October 18, 2018
Excerpt of answer:

In the absence of pending return of income, the provisions of section 143(2) of the Act is clear that notice can be issued only when a valid return is pending for assessment. Accordingly, this notice has no meaning

Can a S. 143(3) assessment be reopened u/s 147 despite full disclosure of facts?
Subject: Can a S. 143(3) assessment be reopened u/s 147 despite full disclosure of facts?
Category:  Income Tax
Asked by: Prashant Joshi
Answered by:
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Date: October 11, 2018
Excerpt of answer:

In Income-Tax Officer V/s. Techspan India Private Limited and Another, reported in [2018] 404 ITR 10(SC), the Supreme Court reiterated the settled principle of law laid down by the Supreme Court in CIT V/s. Kelvinator of India Ltd. [2010] 320 ITR 561(SC) that the Assessing Officer has a power only to reassess and has no power to review the assessment order. Thus, it held that no re-opening notice can be issued which is premised on a change of opinion

Compounding of offense u/s 279 of Income-tax Act
Subject: Compounding of offense u/s 279 of Income-tax Act
Category:  Income Tax
Asked by: Nikhil Desai
Answered by:
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Date: September 29, 2018
Excerpt of answer:

The Querist is a private limited company. For the assessment year 2008-09, the querist filed the return of income declaring total income of Rs.17,18,090 and claimed refund of Rs.6,68,460. During the course of scrutiny assessment, the Assessing Officer objected to the assessee’s…

Tax demand despite TDS deduction by employer
Subject: Tax demand despite TDS deduction by employer
Category:  Income Tax
Asked by: Devarsh Pravinbhai Patel
Answered by:
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Date: September 29, 2018
Excerpt of answer:

The law is clear that the assessee deductee is entitled to credit of the tax deducted at source with respect to amount of TDS for which Form No.16A issued by the employer deductor. The department has to give credit of tax deducted at source to the assessee – deductee to the extent form no.16 A issued by the deductor

What is “diversion of income by overriding title”?
Subject: What is “diversion of income by overriding title”?
Category:  Income Tax
Asked by: Suresh Kumar
Answered by:
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Date: September 26, 2018
Excerpt of answer:

The concept of diversion of income by overriding title is to be applied in situations which are clear and where the existence of the title in the legal or natural person in whom an overriding title is to be recognized is also certain, and the facts are such as to warrant the conclusion that the income is not that of the recipient, but in fact the income of the person in whose favour an overriding title is to be recognized

Real Income Theory Of Taxation
Subject: Real Income Theory Of Taxation
Category:  Income Tax
Asked by: Prashant Joshi
Answered by:
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Date: September 26, 2018
Excerpt of answer:

The charge is not on gross receipts but on profits and gains properly so called. Gross receipts or sale proceeds, however, include profits. The word “profits” in section 28 should be understood in normal and proper sense. However, subject to special requirements of the income-tax, profits have got to be assessed provided they are real profits

Is there a TDS obligation u/s 194-H of Income Tax Act when making payment to dealers for sim cards?
Subject: Is there a TDS obligation u/s 194-H of Income Tax Act when making payment to dealers for sim cards?
Category:  Income Tax
Asked by: Abdul Malik
Answered by:
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Date: September 15, 2018
Excerpt of answer:

In the case of the telecom company, it is the owner of the prepaid voucher/SIM card and not the wholesale dealer. It is the telecom companies who are providing the services to the distributors on prepaid package. If at all, there is an agency relationship on which TDS is required to be deducted on the commission paid to the dealers is qua the cellular operator and the wholesale dealer

What is the TDS Obligation When Reimbursing Expenses To C & F Agent?
Subject: What is the TDS Obligation When Reimbursing Expenses To C & F Agent?
Category:  Income Tax
Asked by: Neeraj Sharma
Answered by:
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Date: September 14, 2018
Excerpt of answer:

“The contract between the assessee and C & F Agent is a service contract which has not been specifically included in Explanation III below section 194C. In this view of the matter, the provisions of section 194C are not applicable to the payments to the C & F agents. If that is so, there was no obligation on the part of the assessee to deduct tax from the payments made to C & F agents

Can a co-op housing society compel members to pay donation?
Subject: Can a co-op housing society compel members to pay donation?
Category:  co-op housing societies
Asked by: Narendra Rajput
Answered by:
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Date: September 14, 2018
Excerpt of answer:

A Society is not expected to indulge into profiteering business from the members and if such amount is earned, then it is taxable under the law. There is no bar for any member to pay donation to the Society, however, it should be voluntary without any compulsion and coercion. No manner the transfer fees can be charged under the pretext of donation

Is there a time limit for holding an assessee in default for default of Tax Collection at source?
Subject: Is there a time limit for holding an assessee in default for default of Tax Collection at source?
Category:  Income Tax
Asked by: CA Raghavendra
Answered by:
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Date: September 14, 2018
Excerpt of answer:

The consistent view has been taken by the various Hon’ble High Courts on this issue that when no limitation is provided in the statute then a period of four years is considered as reasonable for passing the order U/s 201(1)/201(1A) of the Act. The provisions of Section 206C of the Act are analogous and a measure for compliance of collection of tax at source as a similar measure for compliance of deduction of tax at source is provided U/s 201 of the Act