CA Jyoti Gupta has considered the question whether disallowance u/s 14A can be made in a case where exempt income is earned from stock-in-trade and strategic investments in the context of the recent judgement of the Supreme Court in Maxopp Investment Ltd vs. CIT 91 taxmann.com 154 (SC)

As could be discerned from the heading itself, vide this article we would be discussing the provisions of Sec.14A of the Income-tax Act. The matter for discussion, is the recent decision of Hon’ble Supreme Court in case of Maxopp Investment Ltd vs. CIT [2018] 91 taxmann.com 154 (SC).

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In Shanti Ramanand Sagar vs. CIT (2018) 402 ITR 245, the Bombay High Court has upheld the levy of penalty u/s 271(1)(c) for concealment of income or furnishing inaccurate particulars of income. Advocate Rahul Hakani has explained the judgement in the proper perspective and pointed out that it does not alter the prevalent legal position that no penalty can be levied in case of rejection of a bona fide legal claim

1. After the decision of the Supreme Court in UOI v. Dharmendra Textiles (2008) 306 ITR 277 (SC) , it was seen that the revenue authorities initiated penalty proceedings in an automatic fashion and also argued at different Appellate stages that penalty is to be levied the moment addition is made or confirmed. This erroneous interpretation was set at naught by the Supreme Court in Union of India vs Rajasthan Spinning & Weaving Mill (2009) 180 Taxmann 609(SC) wherein it was held as under:

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CA Prarthana Jalan points out that the department’s aggressive action in launching prosecution even for trivial offenses is creating panic amongst taxpayers and leading to a state of “Tax Emergency”. She advises that the department should use the weapon of prosecution sparingly and only against habitual offenders and not as a tool to terrorize taxpayers

I had heard about National Emergency, had read about Financial Emergency and am witnessing “Tax Emergency” in front of my eyes. Indeed our country is in the state of “Tax Emergency”.

As during emergencies, no law is applicable except what the government decides according to its own sweet will similarly in today’s scenario also it seems Income Tax Act, 1961 is not applicable but just one law is applicable i.e “TAX Collection TARGET”

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In ITO vs. Dharam Narain, the Supreme Court has held that if the assessee is not available to take service of the s. 143(2) notice, service on the authorized representative is sufficient to draw inference of deemed service of notice on the assessee. It was also held that the fact that the authorized representative is disowned by the assessee is irrelevant. CA Dev Kumar Kothari has carefully analyzed the judgement. He argues that the judgement is wrong and requires reconsideration. He has made good his assertion by giving detailed reasons

In a Writ Petition in case of Dharam Narain Versus Income Tax Officer, Etawah – 2012 (12) TMI 1148 – ALLAHABAD HIGH COURT, the High Court has held that there was no service of notice upon assesse, therefore initiation of assessment proceeding was invalid. However, this has been reversed in CIT V Dharam Narian reported as 2018 (2) TMI 1474 – SUPREME COURT OF INDIA.

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CA Yash V. Rajpurohit has compiled a list of all important due dates in March 2018, and the statutory obligations which require to be complied with within the said deadline. The checklist will help taxpayers and professionals ensure that they do not miss out on any obligation which may attract penal consequences

“Kaal Kare So Aaj Kar,
Aaj Kare So Ub,
Pal Mein Pralaya Hoyegi,
Bahuri Karoge Kub”

Sant Kabir

Sant Kabir in the 15th Century has clearly portrayed the importance of time management; while inscribing the above doha. The above verse clearly explains the human tendency of laziness and procrastination even at that point of time. Sant has also explained that if we keep on postponing our work, it may cause stress related problems to us. Sant has advised that we should complete our work well within the given timeframe. Completing our work before the target date will not only help us to reduce the stress but it will also help in improving the quality of work.

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Advocate Sunil Moti Lala, assisted by CA Tushar Hathiramani, has prepared a compilation of 2000 important judgments on transfer pricing (1,200 cases), International Tax (109 cases) and Domestic Tax (691 cases) reported in the period from January to December 2017. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. The appeal numbers in most cases have been provided so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. A PDF copy of the digest is available for download. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of all the important judgements dealing with transfer pricing, international taxes and domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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