Subscribe To Our Free Newsletter:

Let’s Have One More Tax Amnesty Scheme: Rahul Bajaj

Shri. Rahul Bajaj

Let’s Have One More Tax Amnesty Scheme: Rahul Bajaj

Shri. Rahul Bajaj, Industrialist

Leading Industrialist Rahul Bajaj has suggested that to tempt black money hoarders to bring their billions of unaccounted money stashed abroad into India, a carrot-and-stick approach should be adopted. The hoarders should be offered an Amensty Scheme as an inducement to bring the money into india and as a threat they should be told that they will otherwise be sent to jail and their money will be confiscated

Leading industrialist Rahul Bajaj suggested at a CII interactive session with Finance Minister Pranab Mukherjee that the government could come out with an ‘One Time Amnesty Scheme’ to tax unaccounted money. Rahul Bajaj hastened to add that he did not like people who cheated on their taxes and he also did not like income tax officers who were corrupt.

On the aspect of tax amnesty, Rahul Bajaj suggested that if the people with black money in foreign countries did not avail of the amnesty scheme, they should be “sent to jail” (if and when convicted) and their black money should be “confiscated” (if and when found).

Read more ›

Posted in Articles

Dear Income-tax Department, ‘Thank You’ For Ruining Indian Economy

Shri. Jaitirth Rao

Dear Income-tax Department, ‘Thank You’ For Ruining Indian Economy

Shri. Jaithirth Rao, Entrepreneurial Whiz-Kid

Jaithirth Rao, renowned entrepreneur, expresses deep anguish at the arbitrary manner in which the income-tax department is harassing Global BPO companies and raising bogus tax demands, forcing them to relocate their operations to foreign countries like the Philippines & China. This short-sighted approach of the income-tax department will ruin the Indian economy, he warns

Jaithirth Rao, entrepreneurial whiz-kid, has launched a blazing attack on the income-tax department for its arbitrary policies which is forcing large blue-chip MNCs to shift their BPOs from India to more reasonable Countries.

In a thought-provoking article in the Indian Express, Jaithirth Rao spoofs a letter from the Finance Minister of Philippines to the Finance Minister of India “thanking” the latter for the “vicious harassment” that the income-tax department has heaped on the Indian IT and BPO industries which has caused a shift of BPO businesses from India to the Philippines.

Read more ›

Posted in Articles

Vodafone Retro Law Change Is A Failure Of National Governance: Dinesh Vyas

Shri. Dinesh Vyas

Vodafone Retro Law Change Is A Failure Of National Governance

Shri. Dinesh Vyas, Senior Advocate

Eminent Senior Advocate Shri. Dinesh Vyas expresses anguish at the covert manner in which the retrospective amendments to nullify the judgement of the Supreme Court in Vodafone International vs. UOI were introduced in the Finance Bill 2012 without any reference being made to it in the Finance Minister’s Budget speech. Given the size & significance of the issue, the lapse of the Finance Minister is deliberate and a failure of national governance standards, he says, and adds that the Government’s clumsy attempt to change the law has caused, amongst big-ticket foreign investors, a loss of faith & confidence in India as a reliable investment destination

The truth of the matter is this. Sachin Tendulkar’s hundredth century was the turning point in the journey of Union Budget 2012-13 and after this the interest of an average Indian in the whole Budgetary process receded and went down and down. But by the time the hundredth run was scored, the average Indian had reached to the following conclusions with regard to the Budget.

The Finance Minister was playing a game of political survival in New Delhi while the game of ODI was being played in Mirpur, Bangladesh. The attempt was to have a smooth sailing without disturbing further the political balance. There was no major reform programme to be presented before the Parliament. There was no desire to please the corporate world. The common man was to be pleased to keep the vote bank intact. In short, the government had no great agenda other than to continue to be in power.

Read more ›

Posted in Articles

Don’t Let Vodafone Get Away Without Paying Taxes: CBDT ex-Chief

Shri. Sudhir Chandra

Don’t Let Vodafone Get Away Without Paying Taxes: CBDT ex-Chief

Editorial Board

Shri. Sudhir Chandra, former Chairman of the CBDT, sends out a powerful emotive appeal that letting MNCs like Vodafone escape without paying tax on the trillions of dollars that they earned from India will wreck the Indian economy and spell havoc for the common man. He rues the misconception because of which the common man treats the tax evaders as heros and the tax department as villans

Mr. Sudhir Chandra, CBDT’s ex-Chairman has come out with all guns blazing in support of the retrospective amendments in the Finance Bill 2012 seeking to nullify the judgement of the Supreme Court in Vodafone International vs. UOI 341 ITR 1. In a hard-hitting and no-holds barred article in the Business Standard, Sudhir Chandra attacked tax consultants who think it is their right to create paper SPVs in tax havens to avoid Indian capital gains and when their right to avoid tax is challenged, they shout or grumble.

Read more ›

Posted in Articles

Vodafone Not Liable Under Retrospective Law: Soli Dastur

Shri. S. E. Dastur

Vodafone Not Liable Under Retrospective Law: Soli Dastur

Editorial Board

Eminent Senior Advocate Mr. S. E. Dastur considers whether the retrospective amendments proposed in the Finance Bill 2012 to nullify the Supreme Court’s verdict in Vodafone International are constitutional and achieve their purpose. He opines that the provisions are unreasonable & arbitrary and explains why they may not stand up to challenge

Shri. S. E. Dastur, eminent Senior Advocate, gave a lecture yesterday (20.3.2012) where he meticulously analyzed the Finance Bill 2012 and provided brilliant insights into its implications.

On the retrospective amendments made to overcome the judgement of the Supreme Court in Vodafone International vs. UOI 341 ITR 1, Mr. Dastur pointed out that while parliament had the power to enact retrospective legislation, there were three aspects to be considered.

Read more ›

Posted in Articles

The Qualities Of A Good Judge

Hon'ble Justice Shri. R. V. Easwar

The Qualities Of A Good Judge

Hon’ble Shri. R. V. Easwar, Judge, Delhi High Court

With 20 years of experience in judicial office, Justice Easwar explains why some Judges are able to inspire confidence in the minds of the litigants. A Judge is like God and must develop sterling qualities to be able to occupy the high office. These qualities must be cultivated by everyone who aspires to the position of a Judge says Justice Easwar

Br. Veerabhadrappa, the Officiating President of the Income Tax Appellate Tribunal, Br. Manmohan, Vice-President of the Mumbai Zone, my esteemed erstwhile colleagues, and the newly appointed Members of the Tribunal:

A very good afternoon to all of you. It is a privilege accorded to me very kindly by Bro. Veerabhadrappa to address the newly appointed members of the Tribunal. The Tribunal is close to my heart for several reasons. I spent close to 20 years here and I tell you, those were some of the very best years of my life. Besides giving me a sense of satisfaction so far as the work aspect is concerned, it also gave me an exposure which otherwise I may not have had. I worked in several places of the country and both I and my family could imbibe the various cultural hues and enjoy the pleasure of meeting myriad kinds of our countrymen. The Tribunal was so kind to me. I had the benefit of sitting with several members coming from different social, cultural and career backgrounds. I learnt from every one of them. Every one of them, without exception, was considerate and kind to me and my family. The Tribunal has always been one family and I indulged in the brotherhood prevalent here. I therefore consider it my duty to be able to contribute whatever you think I can, to the institution I served.

Read more ›

Posted in Articles

Vodafone & The Art Of Writing Judgements

Hon'ble Shri. D. Manmohan

Vodafone & The Art Of Writing Judgements

Hon’ble Shri. D. Manmohan, Vice-President (Mumbai Zone)

Hon’ble Shri. D. Manmohan uses his vast experience as a lawyer & Judge to explain how a judgement should be written. He cites the example of Vodafone International vs. UOI as a ‘model’ judgement for the way it has been structured. He also gives several other examples of judgements written by Lord Denning, Krishna Reddy & other Law Lords and emphasizes that Judges must use simple and clear language in their judgements

Before the advent of East India Company judgement writing was not as important as it is now. The decisions were rendered by Kings or Juries/Panchayats, who need to do no more than sum up, as briefly as possible. Under the common law system all the developed and developing countries are following the precedent based approach and there are hierarchy of courts. In order to enable an appellate court to understand as to why a judgement is rendered in a particular manner, the judge must now prepare the judgement often at considerable length.

Read more ›

Posted in Articles

Vodafone Verdict Is Wrong: Prashant Bhushan

Prashant Bhushan

Vodafone Verdict Is Wrong: Prashant Bhushan

Editorial Board

Prashant Bhushan launches a scathing criticism of the Vodafone verdict and argues that India will be seen as a “banana republic” where foreign companies can loot our resources and even avoid paying taxes on their windfall gains from the sale of those resources.

Prashant Bhushan, legal crusader, has launched a scathing criticism of the judgement of the Supreme Court in Vodafone International vs. UOI. In an article published in the Hindu, Prashant Bhushan argues that the Supreme Court has again made a wrong call on tax avoidance and set a precedent that jeopardises thousands of crores of potential revenue for the exchequer.

Prashant Bhushan points out that tax avoidance through artificial devices has become a very lucrative industry today and that a large part of the income of the ‘Big 5′ accountancy and consultancy firms is derived from such schemes. McDowell 154 ITR 148 (SC) had put the issue in the correct perspective, though two later decisions (Azadi Bachao Andolan & Wallfort) reverted to calling artificial tax avoidance devices “legitimate tax planning” rues Prashant Bhushan.

Read more ›

Posted in Articles

Vodafone Judgement: Guide To Law Laid Down By The Supreme Court

Edditorial Board

Vodafone Judgement: Guide To Law Laid Down By The Supreme Court

Editorial Board

In Vodafone International Holdings B.V. vs. UOI the Supreme Court has laid down several important and far-reaching principles of law on tax planning vs. tax avoidance, interpretation of s. 9, applicability of s. 163, TDS obligations u/s 195, etc. Our expert editorial team has carefully analyzed the entire judgement and identified all the core principles therein.

Core Principles of Law laid down by the Supreme Court in Vodafone International Holdings B.V. vs. UOI

(A) Tax planning vs. Tax Evasion:

 

vodafone judgement

(1) The cardinal principle is that if a document or transaction is genuine, the court cannot go behind it to some supposed underlying substance. A document or a transaction cannot be looked at isolated from the context to which it properly belonged. It is the task of the Court to ascertain the legal nature of the transaction and while doing so it has to look at the entire transaction as a whole and not to adopt a dissecting approach. This is the “Look At” principle. The Revenue cannot start with the question as to whether the transaction was a tax deferment/saving device but that the Revenue should apply the “look at” test to ascertain its true legal nature. Genuine strategic planning had not been abandoned and it cannot be said that all tax planning is illegal/ illegitimate/ impermissible. Tax planning may be legitimate provided it is within the framework of law. However, a colourable device cannot be a part of tax planning. There is no conflict between McDowell 154 ITR 148 (SC) and Azadi Bachao Andolan 263 ITR 706 (SC).

Read more ›

Posted in Articles

Taxation of Real Estate Development Contracts: Ready Reckoner of Case Laws

Dr. K. Shivaram & Rahul Hakani, Advocates

Tax on Real Estate Development Contracts: Important Case Laws

Dr. K. Shivaram & Rahul Hakani, Advocates

The authors have compiled a list of the most-important judgements on the taxation of real estate development contracts. The article will prove invaluable to busy professionals who like having access to important case laws at their finger tips

(1)Housing Projects – [S. 80IB(10)]

(i) CBDT Circular F. No. 205/3/2000/ITA II dt. 4-5-2001. CBDT has clarified that “any project which has been approved by a local authority as housing project should be considered as adequate for purpose of Section 80IB(10)”.

(ii) CIT vs. Brahma Associates (2011) 333 ITR 289 (Bom.). Section 80IB(10) allows deduction to the entire project approved by the local authority and not to a part of the project, if the conditions set out in section 80IB(10) are satisfied, then deduction is allowable on the entire project approved by the local authority and there is no question of allowing deduction to a part of the project

Read more ›

Posted in Articles

Newsletter


If you are a tax professional, you must sign up for our free newsletter. Why? Because we keep you informed about the latest developments in the world of tax. We focus only on the most important must-read judgements & articles that will impact your day-to-day professional work. You can see a chronological listing of all our postings on twitter & facebook


IMPORTANT: After signing up & clicking on the confirmation mail, send a test/ blank mail to editor@itatonline.info. Why? Because it is the easiest way to add our email address to your address/ contacts book and ensure that our Newsletter does not get sent to the Spam/ Junk folder


Email



Unsubscribe