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How To Use The RTI Act For Maximum Benefit In Income-Tax Matters

CA Narayan  Varma

How To Use The RTI Act For Maximum Benefit In Income-Tax Matters

CA Narayan Varma
The Right to Information Act, 2005 is a potent tool for tax payers to find solutions to their everyday problems. Unfortunately, most taxpayers & tax professionals have not understood the scope and potential of the Act. The author, an eminent and veteran Chartered Accountant, has explained the law in the simplest possible manner and given several practical examples so that all taxpayers can derive full benefit from the RTI law

This article deals with Income-tax Issues, though some parts of it will be applicable to Indirect tax issues also.

RTI & Professionals

Citizens in general and professionals alike in the financial fields are more often than not stuck in a major traffic jam of bureaucrats, red tapism, ‘babudom’, corrupt officials, unconcerned staff, rude misbehaviour, etc. There is almost no way to wade through this. There are a lot of tiny issues that are present in the government departments which are so deeply imbibed into their system that they are almost synonymous with the department in itself. The common man too has this fixed negative notion towards these departments but has never tried to change it since he thinks that his individual effort would go entirely futile and that a mass movement is required to extract this absorbed venom from the veins of our democracy. October 2005 was the lucky time when the Government came up with the anti-venom, the Right to Information Act. Read more ›

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S. 132: A Practical Guide To The Law And Procedure Of Search And Seizure

Dr. K. Shivaram

S. 132: A Practical Guide To The Law And Procedure Of Search And Seizure

Dr. K. Shivaram, Advocate
The power of search & seizure is a potent tool for the department to unearth unaccounted income. However, to mitigate the possibility of its misuse by over-zealous officials, the law has incorporated several safeguards. The author, an eminent advocate with rich experience in the subject, has explained the entire law in a succinct manner. His check list will ensure that the department and the taxpayers are always on the right side of the law

1. Introduction.

1.1. One may recollect that in the year 1991, when the Chamber of Income-tax Consultants had organised the second All India Tax Conference, one of the session was regarding tax payers’ education programme. It was the first time in the history of taxation that the Chamber of Income tax Consultants had produced a “skit on Search and seizure”. The skit (play) was informative about how a search was conducted, the common mistakes committed by assessees and the like. In the year 1991, the Chamber of Tax Consultants also had a unique programme held at Baidas Hall, where the high income-tax payers of Mumbai were honoured. In this programme also, the play was enacted and was appreciated by all including the Chairman of the CBDT, the Commissioners of Income-tax of Mumbai and the officials of the search team. It is worth considering, subject to permission and precautions, if this play can be posted in the website of the Chamber of Tax Consultants or could be re-enacted during seminars like this.

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Analysis Of Four Important Judgements (July – Sept 2013)

Shri. Anant Pai

Analysis Of Four Important Judgements (July – Sept 2013)

CA Anant N. Pai
No practitioner can afford to be unaware of the latest judgements & whether experts view the judgement as being right or wrong. Towards that end, the author has agreed to take time out of his busy schedule to make an analysis of landmark judgements every quarter. In this part, the author has identified four landmark judgements analyzed them with a critical eye and identified their strengths & shortcomings

(1) Business Income :- [Section 28 (1)] – Security deposit collected in sales invoice towards possible levy of sales tax on packing charges is not trading receipt.
Dalmia Cement {Bharat} ltd. vs. CIT [2013] 36 taxmann.com 358 (Delhi)
In the case before the Delhi High Court, the assessee had collected refundable security deposits from its trade customers towards possible levy of sales tax on packing charges. At the time of collection, levy of sales tax on packing charges was a pending dispute before Courts. The security deposit was collected by the assessee  in the invoice with a specific citation therein that the amount collected would be paid to Government, if the  issue of levy of sales tax was upheld in Supreme Court and otherwise returned to the payer, if the levy was not sustained.

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Transfer Pricing: The Law And Practice Of Advance Pricing Agreements (APA)

Anurag Soan + Shreya Ganju

Transfer Pricing: The Law & Practice Of Advance Pricing Agreements

Anurag Soan & Shreya Ganju, Symbiosis Law School, Pune
The Advance Pricing Agreement Scheme (APA), which was notified on 30.08.2013, presents a steep learning curve for the taxpayers and the revenue though it has been in operation in other countries for several years. The authors have, after deep study of the Indian law and that prevailing in other Countries, identified all the complexities in the Scheme and suggested measures to resolve them

Introduction

Taxation is a concept which is based on the sovereignty of nations, whereby each nation taxes income derived from businesses within its sovereign control. Universally, the world recognises each nation’s right to tax the economic activity within its jurisdiction.1 International issues are addressed, to some extent, through a number of bilateral treaties, many based on an international model2 or convention, mutual understandings, and practice. Taxation of international transactions by individual nations often results in confusion, disagreement, double or multiple taxation of same income,3 and, also taxable income which is not taxed by any of the nations. Concurrently, the fragmentation of taxation of international transactions into a number of national systems provides a significant opportunity to business entities for tax avoidance, evasion, or mistake.4

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S. 43CA: Tax Implications On Builders And Real Estate Developers

Dr.  Raj K. Agarwal & Dr.  Rakesh Gupta

S. 43CA: Tax Implications On Builders And Real Estate Developers

Dr. (CA) Raj K. Agarwal & Dr. Rakesh Gupta, Advocate
S. 43CA, which provides that the profits on transfer of immovable property held as stock-in-trade shall be computed on the basis of the stamp duty valuation, has several nuances and complications, particularly for real estate developers following the percentage completion method. The authors have, after detailed study, identified all the nuances and complications and provided clear-cut answers

Finance Act, 2013 has inserted a new section 43CA under the Income Tax Act, 1961 which is applicable from Financial Year 2013-14, introducing the provisions for taxability of transfer of immovable property (land or building or both) held in the nature of stock in trade, on the same lines which are applicable for immovable property held in the nature of “capital asset” under section 50C of the Act.

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What Every Professional Should Always Remember: ITAT President

Shri. H. L. Karwa

What Every Professional Should Always Remember: ITAT President

Shri. H. L. Karwa, President, ITAT
Hon’ble Shri. H. L. Karwa, President of the Tribunal, reminds all of us that character is the professional’s greatest asset. A professional is expected to have high moral character and that is why Courts implicitly trust a professional’s word. The professional is expected to reciprocate the trust by conducting himself in a dignified manner. He cautions us that professionals must be careful never to betray that trust, even unknowingly

Shri A.P.Sathe, President, ITAT Bar Association, Mumbai, Shri S.K.Poddar, National President, All India Federation of Tax Practitioners, Dr.K.Shivaram, Past President, ITAT Bar Association, Mumbai & Past National President, All India Federation of Tax Practitioners, Shri R.B.Malik, Principal, Government Law College, Mumbai, Prof. Sanjay V.Kadam, Chairman, Moot Court Association, Government Law College, today’s Guest of Honour brother Shri D.Manmohan, Vice President (Mumbai Zone), ITAT, my colleagues, law students participating in the Moot Court Competition, ladies and gentlemen.

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How To Argue Matters In Court And Become A Better Lawyer

Hon'ble Shri. D. Manmohan

How To Argue Matters In Court And Become A Better Lawyer

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

Hon’ble Shri. D. Manmohan, a veteran at the Bar and the Bench, shares some invaluable tips on how young professionals should argue matters in Court and become better advocates. Sincerity to the Court & the client, mastery over the facts and the law, an ability to work hard and tirelessly and a never-say-die attitude are necessary attributes for success in the legal profession says the learned Judge

The Chief Guest of today’s evening, Hon’ble President of ITAT Shri Karwaji, Principal of Government Law College Shri R.B. Malik, President and Immediate Past President of ITAT Bar Association Mr. Arun Sathe and Dr. K. Shivaram, President of AIFTP Mr. Poddar from Ranchi, Chairman and General Secretary of Moot Court Association Prof. Sanjay Kadam and Mr. Raghav Dev, Members of ITAT Bar Association, my colleagues from ITAT and my young friends,

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Is Stake Money Received By Jockeys Liable For TDS?

Ashish-Karundia

Is Stake Money Received By Jockeys Liable For TDS?

CA Ashish Karundia, Senior Associate, Direct Tax, Lakshmikumaran & Sridharan

In a short but succinct article, the author has dealt with the controversial topic whether stake money received by jockeys is liable for TDS or not. After thorough research and a systematic study of sections 194BB and 194J of the Act, the author has drawn the conclusion that there is no present obligation to deduct tax on these payments.

Casual and non recurring receipts were exempted from payment of Indian Income Tax since 1918 [end note 1] except where such receipts arose from business or exercise of profession, vocation or occupation. The Indian Courts have held that winnings from horse races amount to casual and non recurring income, however, whether such income qualifies as business income of the taxpayer or not is a question of fact [end note 2]. Resultantly, winnings from horse races were brought to tax where horse racing constituted a business of the taxpayer else exempted where the same constituted hobby. In order to bring uniformity in taxing such winnings, the legislature amended [end note 3] the Income Tax Act, 1961 (‘ITA’) and deemed, winnings from horse races, as income [end note 4] on the basis of the suggestions [end note 5] of various committees [end note 6].

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A Treatise On The Tax Implications Of Hindu Undivided Family (HUF)

Shri. K. C. Singhal

A Treatise On The Tax Implications Of Hindu Undivided Family (HUF)

Shri. K. C. Singhal, Advocate, VP, ITAT (Retd)
The law on taxation of HUFs is a complicated branch of legislation and requires expert knowledge of Hindu Law. The author, a former Vice-President of the Tribunal & now a practicing advocate, has carefully analyzed all the important judgements on the subject and explained the nuances and fine points of the law with particular emphasis on the recent amendments to the Hindu Succession Act 1956

Hindu Law has been discussed by various authors in the light of various judgments of courts. The said law stands amended by various enactments. This discussion would deal with the various aspects of Hindu Law which are relevant for the purpose assessment of income and wealth in the status of Hindu Undivided Family (HUF) as well as the impact of the provisions of Hindu Succession Act 1956 as amended by Hindu Succession (Amendment) Act 2005 which are relevant for the purpose of assessment of income and wealth in the status of HUF under Income Tax Act 1961. Firstly, would be discussing the legal position under the original Hindu law and then discuss the impact of the relevant provisions of Hindu Succession Act 1956.

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The Law On Use Of Secret Comparables In Transfer Pricing

Justice Vineet Kothari

The Law On Use Of Secret Comparables In Transfer Pricing

Hon’ble Dr. Justice Vineet Kothari, Judge, Rajasthan High Court
The question whether the TPO is entitled to rely on secret comparables whilst determining the ALP of an international transaction has been the subject matter of great controversy. The learned Judge, who is also a qualified CA and CS, has carefully analyzed the entire law on the subject and explained it with great clarity. He has also provided perspective on the proper procedure that the TPO has to follow while determining the ALP

1. Introduction
In the present paper, I propose to deal with some of the cases decided in India in last couple of years by High Courts and Income Tax Tribunal on the issue which I am expected to deal, namely, the comparability of secret comparables by TPO while determining ALP.
I should inform you, the fellow members, that there are very few decided & reported cases yet from higher appellate & Constitutional Courts like Supreme Court of India at Delhi and 24 High Courts, from one of which, Rajasthan High Court, Jodhpur from where I come.

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