Messages

1

Discussion / Re: IT dept detects Rs. 7 crore evasion in Gadkari’s companies

« on: May 10, 2013, 12:47:02 PM »

I AGREE WITH PAWAN SINGLA.  THE DEPARTMENT IN ORDER TO GAIN PUBLICITY AFTER THE RAID MAKES STATEMENTS OF THE APPROXIMATE CONCEALMENT DETECTED BY THEM WHICH IS REPORTED IN THE PRESS.  WHAT REMAINS OF THIS AFTER THE ASSESSMENT IS WORTH MENTIONING IN THE SAME PRESS BUT THIS IS NOT REPORTED EITHER BY THE INCOME TAX DEPARTMENT OR THE PRESS.  IN MANY CASES NONE OF THE FIGURES GIVEN BY THE DEPARTMENT IS RETAINED BY THE APPELLATE AUTHORITIES.  THE DEPARTMENT SHOULD BE BANNED IN PUBLICISING THE RAIDS AND ITS TENTATIVE RESULTS.

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Discussion / Re: CA gets VIP treatment in jail

« on: May 07, 2013, 04:08:01 PM »

How come a substitute was placed in Jail and Mr.Gupta allowed to carry his activities?  Surprising!

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Discussion / Re: TRADING IN CURRENCY FUTURES – WHETHER SPECULATIVE?

« on: March 17, 2013, 08:59:43 PM »

you have restricted your discussion to section43(5) and did not deal with Sec.73.  Without discussing the issues involved in sec.73 the discussion is incomplete.

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Discussion / Re: Speediation: The Challenges of Resolving a Dispute in an Hour in Mediation

« on: February 21, 2013, 09:00:26 PM »

I think in chemistry the function of a catalyst is to hasten the process of reaction without itself being absorbed.  Mediation may provide alternative methods of resolving disputes and that is required because the method adopted by the parties to the dispute is not workable.  Salt may dissolve in water, but does not react and no catalyst make salt to react with water.  Similarly if parties to dispute react to each other, then a catalyst could be introduced, but if they reached a stage when there is no reacation, one need to change the chemistry of the parties so that they start reacting.

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Discussion / REJECTING THE RATIO OF REGIONAL COURT

« on: February 21, 2013, 08:49:06 PM »

It is seen that many assessing officers reject the ratio laid down by the jurisdictional high courts on the ground that the department did not accept that decision and that second appeal is not preferred as the revenue effect was low.  There is no way one could ascertain whether the statement of the AO is genuine or it is only a pretense.  Is there any judgement of any court which discourages this type of practice by the assessing authorities?

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Discussion / change of trustees

« on: December 19, 2012, 03:05:31 PM »

A public charitable trust has 5 trustees.  The trust is in existence for more than 15 years.  Some with a lot of money approaches the trustees who have become aged, that they retire from the office of the Trustees in favour of the five active and young trustees (referred to as Group) so that the trust could function more effectively .  As an inducement to the trustees the Group offers to pay them a particular some.  An agreement is entered into to this effect.  None of the Trustees were paid any remuneration at any time.
The question is whether the amount received by the outgoing trustees is taxable in their hands as: 
1.    As Capital Gains
2.   Gift
3.   Windfall

Whether the amount is  taxable in their hands at all?

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Discussion / Re: whether corruption in India leads to promotion and not prison

« on: November 18, 2012, 04:48:20 PM »

in our country economic growth is mainly on account of corruption.  This is mainly due to the fact that major part of the transactions are in black money.  The salaried employees are paid salary, but they buy their requirements in cash and those who supply these items are bringing the goods in market unofficially.  When one employee buys flat he has to withdrawn money from bank in cash to pay the builder.  Thus money which are official gets converted into black money or into parallel economy.  This fact is recognised by our honourable PM.  In 1991 when he announced amnesty - and several other amensty schemes are a recognition of this fact.  The government is powerless - napumsak - against these forces and they justify this powerlessness affirming their faith in democracy.

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Discussion / Re: Reopening- S.147

« on: November 18, 2012, 04:41:14 PM »

please give me the name of the case and assessment year.

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Discussion / Re: TAX IMPLICATION

« on: September 27, 2012, 11:07:44 AM »

I THINK QUERRIEST IS CONCERNED ABOUT THE FOREIGN PARTY AS TO THE TAX IMPLICATION.  WHETHER THE INCOME PERTAINING TO THE BUSINESS OBTAINED BY THE FOREIGN TRAVEL AGENT FROM INDIA THROUGH THE AGENT IS TAXABLE IN  INDIA AND WHETHER THE INDIAN COUNTERPART WILL BE HELD AS AGENT FOR PURPOSES OF ASSESSMENT.  FURTHER THE FOREIGN TRAVEL AGENT WHETHER WILL BE TREATED AS HAVING A PERMANENT ESTABLISHMENT IN INDIA?  IF THE QUERRIEST CONFIRM THIS IS WHAT HE HAS IN MIND THEN IT CAN BE DEALT.

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Discussion / Re: CONCEALING OF INCOME

« on: September 20, 2012, 02:52:15 PM »

The two questions raised are: If the income is not disclosed what happens.  If ever the omission is detected then the assessment could be reopened within 4 years.  If not detected by the AO then the said amount remains unaccounted and amounts evasion of tax since you are now aware of the omission.  Whether the said amount could be offered as income for 2011-12 it is submitted that since income does not pertain to this year, if offered for taxation will be taxed in 2011-12, but liability for 2010-11 will continue.

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Discussion / Re: CONCEALING OF INCOME

« on: September 20, 2012, 02:46:30 PM »

the querry is raised now - it is presumed that the time limit for revising the return has expired.  The AO cannot now issue a notice under sec.143(2) since time limit for issue of notice also has expired.  You can make an application to the CIT under revisionary provisions bring to the notice of the CIT the error and offering the amount for taxation. 

12

Discussion / Re: Soft Power: India’s Greatest Asset

« on: August 28, 2012, 11:00:42 AM »

The author should know the theary propounded in ages before i.e. SAMA, DANA, BHEDA AND DANDA.  The first method is Sama - ie. talk nicely and enrol the person to your views.  If does not work for whatever reason, it is advocated to offer a carrot.  i.e. Dana.  If it does not work then the third method is BHJEDA i.e. comparison so that a competitive spirit could be generated.  If all the three methods fail, then it is advised to take the last method i.e. DANDA i.e. punishment.  In India we never advocated Punishment as the first resort

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Discussion / Re: Taxability of Sodexo meal coupons

« on: June 09, 2012, 03:50:07 PM »

The coupon is given to employee for meals.  What is noticed that the sodexo coupons are used to buy goods from Malls.  If detected this could cause problems.

14

Discussion / Re: religious activity - section 80G

« on: June 09, 2012, 03:48:25 PM »

Among christians there is a function called Holi Communion/baptism before one becomes a christian.  He has to follow the instructions of the Church even in regard to his marriage i.e. announcement in Public of the proposed marriage on three sundays etc.  There are such systems in Islam there is initiation ceremony and circumcision.  The same is true of Jews.  It is only Indians ; i mean those who do not belong to the organised religions; live the natural way without entering into any of these initiations.  Religions are like Trade Unions.  The more the members the more powerful they become.  That is why there is spree among the religious heads to convert people to Islam, Christianity etc.

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Discussion / Re: Independence of CIT(A)

« on: June 09, 2012, 03:41:26 PM »

The CIT(A) should not be under the administrative authority of the Commissioners of Income-tax or for that matter under the CBDT.  There should be a separate cadre for the appellate authorities with options for promotions.  The promotions could be through the Department of Legal Affairs.  They could come from the Department of Legal affairs instead of Nagpur trained officers.  I would suggest that the designations of the CIT(A) should also be changed so as to erase the impression that they are not in the category of administrative commissioners