“Taxsutra Database”, a true Income-tax research tool, is an archive of over 107800+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unreported handpicked rulings of SC, HC & ITAT’. It is a completely integrated service with the following features:
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We are glad to present to you the 212th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!
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Expert Column
Totalization agreements/Social security agreements (SSA) are entered into to help the nationals of one country to remain covered in the social security schemes of their home country or to obtain / enhance benefits from coverage in the host country schemes.
CA Rohini Ramya (Partner, Taxkode Consulting LLP), in this article, discusses the totalization agreements that India has entered into with 18 countries so far, to avoid double coverage under a social security scheme. The author highlights that there is no law equivalent to Sec. 90(2) of the IT Act providing for application of beneficial provision in cases of dichotomy between local laws under the domestic social security legislation (PF Act). This leaves employees/employers at the mercy of the EPFO who is likely to decide such questions in favour of the PF Act. The author speaks about the expectations from the Draft Code on Social Security, 2019 introduced in the Lok Sabha by the Ministry for Labour and Employment in December 2019, will eventually replace nine laws related to social security, including the current PF Act. The author opines that “Including sufficient clarity in the draft Code will go a long way in reducing the regulatory uncertainty businesses and employees will face, if caught between the SSA and the Indian social security legislation.”
1) HC: CIT being a sanctioning authority u/s. 279, prior approval of CCIT sought by the CIT before passing sanction order u/s 279 not tenable in law – HC noting that CCIT is not the sanctioning authority u/s. 279, quashes the sanction letter and prosecution proceedings u/s 276CC against assessees; Holds that “The sanctioning authority being the Commissioner of Income Tax there was no need for the said Commissioner of Income Tax to have written to the Chief Commissioner of Income Tax to seek for approval”; Accordingly, .............. Click here to read and download HC order
Note: Karnataka HC in [TS-6114-HC-2019(Karnataka)-O] had rejected the assessee's challenge on the validity of the sanction u/s. 279 granted by Principal Director of Income Tax as against authority given to the Principal Commissioner u/s. 279......
2) HC: AO’s action in directing assessee to appear personally and not leave the premises until granted permission highly unreasonable - HC holds that issuance of summons to the extent of asking the assessee to be present for unlimited period till the time he obtains permission from the Assistant Commissioner, is highly unreasonable; The AO issued the impugned summons under which, apart from asking the assessee to be present on a particular day, he also directed the assessee not to depart from the premises till he grants permission .................. Click here to read and download HC order
3) HC: Onus on Assessee to provide a source of credit/deposit in the Bank Accounts – HC rejects Assessee submission that all the amounts deposited in the bank accounts are solely from agricultural income, cannot be accepted; HC notes that assessee in response to summons issued u/s 131(1A) having admitted that he was also doing real estate business and was also having rental income and by not furnishing any details of the same, he cannot blame the AO or the Tribunal for drawing a conclusion ............... Click here to read and download HC order
4) ITAT: Investment in multiple plots, merged as one single unit and construction of house on the same plot eligible for deduction u/s 54F – ITAT sets aside lower authorities order, allow Assessee claim u/s 54F on entire investment of four adjoining plots; ITAT held that investment in four adjoining plots on a single day and then merged by constructing one boundary wall around them leaving one entrance gate , then said merged bigger plot of land would be considered as part and parcel of............. Click here to read and download ITAT order
5) ITAT: Deletes 234B interest levied for shortfall in payment of advance tax liability arising qua retro amendment – ITAT held that, no interest can be levied u/s 234B for shortfall in payment of advance tax, consequent to retrospective amendment; Assessee- a public limited company filed its return of income declaring total income under normal provisions as well as u/s 115JB and claimed deduction u/s 80HHC, which was disallowed by AO in view of sun-set clause under section 80HHC(1B). AO also levied interest u/s 234B on addition made in Book Profit under MAT with respect to deduction on export profit under section 80HHC............ Click here to read and download ITAT order
6) HC: No justification of the AO to change method of accounting followed by assessee to determine income on estimate basis – HC upheld ITAT order that for the AY 2007-08, assessee could adopt completed contract method of accounts without appreciating the amendment to Section 145 of the Act w.e.f. 01.04.1997; Assessee, engaged in business of development of plots and construction of flats, following mercantile system of accounting and completed contract method of accounting for contracts; AO subsequent to notice issued u/s 148, passed an order holding that assessees` current profit cannot be decided by the method of book of accounting followed and estimated the income of by applying 8% rate on the advances received........... Click here to read and download HC order
7) HC: Prosecution SCN should specific particulars about the alleged violation with supporting material - HC allows assessee's writ, sets aside prosecution show cause notice [SCN] issued u/s 279; HC directs revenue to issue a fresh notice to the petitioner with specific particulars about the alleged violation; HC notes that no particulars have been given for which month there is short payment and which month there is a late payment and which provision of chapter XVIIB of the Act was violated.............. Click here to read and download HC order
8) HC: Service charges (maintenance and air conditioning hire charges) received from tenants are liable to be assessed as "Income from other sources" and not as "Income from house property", follows jurisdictional HC ruling in case of Tarapore; However, following SC ruling in assessee’s own case, rules that rental income derived from the house property should be treated as business income................Click here to read and download HC order
9) ITAT: Trustee committee established under Bar Council of Delhi a charitable institution eligible for registration u/s 12AA - ITAT rules in favour of assessee (Advocate Welfare Fund Trustee Committee), notes that trustee committee established under the Bar Council of Delhi is engaged in safeguarding the rights, privileges and interest of the advocates; Its dominant purpose is the advancement of a general public utility within the meaning of section 2(15) of the Act, as such, genuineness of its activities and object of charitable purpose is proved, thus entitled for registration u/s 12AA and consequent exemption u/s 80G shall be exempt under Income Tax............ Click here to read and download ITAT order
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Over 107800+Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent unreported handpicked ruling
Completely integrated service with all the latest cases powered by an advanced search engine to provide a seamless user experience
Search results supported by active filters around Court Level, Location, Case Numbers and Citation
A Unique Bulls Eye application to further enhance search by including "Exact words", "Any of these", "none of these"
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