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Discussion / Re: definition of relatives

« Last post by satyanveshi on Today at 07:44:24 AM »

I dont know on which context the question is placed before  this forum. So far it relates to incometax, as per the decision reported in 46 sot 97 even if it is received by a coparcener of the HUF, the same is not taxable in his hands.

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Discussion / Undisclosed Income Of The Great Abhishek Manu Singhvi

« Last post by shobha nagrani on June 18, 2013, 12:37:15 PM »

Congress spokesperson and Rajya Sabha MP Abhishek Manu Singhvi has moved the Income Tax Settlement Commission (ITSC), seeking immunity from levy of penalty or institution of proceedings for prosecution.

Singhvi has disclosed "undeclared income" of around Rs 11 crore and paid Rs 3.26 crore as tax on the amount after receiving notices from the Income Tax Department about his returns.

The additional income had not been included in the returns as "there was an error in computation and laxity on the part of those who maintain my accounts," Singhvi told The Indian Express.The Income Tax Department, however, has said the additional income disclosed by Singhvi is not true and complete and has estimated the amount at Rs 22.86 crore, taking his total tax liability to Rs 7 crore. But Singhvi has contested this.

Also, the IT Department's notices — which were sent starting in late 2011 — and its estimate of Rs 22.86 crore additional income is for just the one assessment year of 2010-11 (financial year 2009-10). Income Tax Department sources said investigators looking into his returns for other years suspect that his undeclared income could be much higher. Singhvi, however, has said that the Rs 11 crore he has disclosed as undeclared income is for three assessment years starting 2010-11. "I have paid around Rs 3.26 crore towards tax liability and my application is held to be valid. The investigation report for the one year (2010-11) talks about income to be added back, subject to final investigation, is Rs 22.86 crore, which means additional tax of Rs 7 crore, but denied by us. The investigation report itself is indicative and asks for further investigation," Singhvi said.

But the Commissioner of Income Tax, Jodhpur, where Singhvi is assessed, has told the ITSC that the "additional income declared by the applicant is much less than likely to be computed. There are also doubtful nature of various expenses claimed in the light of huge cash withdrawals (sic)". The disclosure is not true and full and therefore his application should be rejected, the commissioner has said.

Singhvi's troubles with income tax authorities, sources said, started after the Financial Intelligence Unit of the finance ministry in 2011-12 generated 17 suspicious transaction reports related to what were said to be huge cash withdrawals of over Rs 120 crore that were traced to Singhvi's bank accounts. The Income Tax Department, after receiving the reports and a complaint, investigated the case and issued a notice to Singhvi, seeking his clarification on the withdrawals. Sources in the Central Board of Direct Taxes also alleged that investigation of the huge withdrawals showed irregularities in billing/expenses which were not explained. A major part of these expenses is shown as having been paid in the last three months of each financial year, they said. They also said that they are looking into Singhvi's agriculture income and payments to lawyers and have decided to reopen his income tax returns for six years starting with the assessment year 2006-07 under section 148 of the Income Tax Act. This provision gives the department power to reassess returns if it feels taxable income has escaped assessment and accordingly, notices have been issued to Singhvi.

But Singhvi has countered the claims in his ITSC application."Huge withdrawals do not ipso facto amount to suspicious transaction in the light of definition of the term STR under Prevention of Money Laundering Act," Singhvi has said. He also told The Indian Express that he has questioned his returns for six years being reopened. "We have questioned and objected to that, there is no reasoning for reopening of IT returns and I will challenge that," he said.

Under income tax guidelines, the penalty for failing to make a full and true disclosure could go up to 300 per cent of the tax which was sought to be evaded along with rigorous imprisonment of seven years.

The ITSC is a quasi-judicial body for alternate dispute resolution. It allows a one-time tax evader or an unintending defaulter to make a clean breast of his or her affairs and the benefit of the settlement mechanism can be availed by a tax-payer only once in a lifetime, the commission says.The settlement mechanism allows taxpayers to disclose additional income over and above what has been already disclosed before the Income Tax Department. The applicant has to pay full tax and interest on the additional income disclosed before the commission, before filing the application. The commission then decides on the admissibility of the application.

On May 10, the ITSC declared Singhvi's application to be valid for seeking a report from the Income Tax Department. The ITSC is required to pass the final settlement order within 18 months of the application."The matter is still unadjudicated, unproved and contentious. There will be full investigation, only then orders shall be passed," Singhvi told The Indian Express.

http://www.indianexpress.com/news/abhishek-singhvi-moves-it-settlement-commission-over-undeclared-income/1130437/0

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Discussion / definition of relatives

« Last post by 304698 on June 18, 2013, 10:49:30 AM »

Dear all,

there is a confusion prevailng in our society that "A HUF can received gift from its member but A member can't taken gift frm its HUF.

Let me know am i right ?

Plesae substaniate your answer with section.

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Discussion / Re: Supreme Court bench is late by an hour every day

« Last post by vsaiyar on June 18, 2013, 09:51:36 AM »

If Supreme Court considers itself to be a government office, then the judges are justified in doing what they are doing.  The government offices are supposed to open from 10.00 to 18.00.  One one will hardly find the head of the department and other senior officials in their offices before 11.30 and after 16.00 hrs.  I can say this with my experience in the Income tax Offices in Mumbay. 

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Discussion / Re: applicability os section 2(22)(e) in case of ICDs

« Last post by pawansingla on June 16, 2013, 11:54:18 PM »

Sir,
i agree. But i gave him a judgementwhich also supports his facts. His client is not shareholder of the company. There is only one common shareolders. Acoording to my limited knowledge of tax , the rati of bhaumik amy also apply to his case.

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Discussion / Supreme Court bench is late by an hour every day

« Last post by shobha nagrani on June 15, 2013, 09:43:44 AM »

NEW DELHI: Punctuality, an important defining character of Judges, is the latest casualty in the Supreme Court, the role model for high courts and the subordinate courts.

Old timers recount there was a time when litigants used to set their watches to 10.30 am when Judges of the Supreme Court assembled to begin proceedings. But, no longer, they lament.

Lawyers and litigants grumble under their breath when Judges sit late. But, they dare not comment openly as they do not want to risk the wrath of the Judges and affect the fate of their cases and clients.

Chief Justice of India (CJI) Altamas Kabir, who sits in court no. 1, is usually late to the court every day and the bench headed by him seldom commences judicial work at scheduled 10.30 am. But, Justice Gyan Sudha Misra appears to be setting a record of her own in coming late to the court.

During normal working days, she too comes late to the court. But, during the ongoing summer vacation, punctuality in the SC appears to have lost its meaning as the bench headed by her, which was sitting from May 30 to June 14, assembled at least 60 minutes late on every working day.

Three days ago, the bench headed by her assembled at 12 noon instead of 10.30 am. On entering the court room packed with lawyers and litigants waiting patiently, she sported a wry smile and said - "Thanks for your patience!" Justice R S Sodhi, who is practicing in the SC after retiring as a HC Judge, responded - "Thanks for coming!"

ToI sought views of retired CJIs, SC Judges and lawyers about sanctity of punctuality in judiciary. Former CJI V N Khare said, "The Supreme Court Judges are the role model for High Court Judges and presiding officers of subordinate courts. If they are not punctual then it would set a very bad precedent for others."

"Punctuality is the first and foremost thing which is in the hands of the Judges. If for some exceptional urgent situation which delayed a Judge, it should be notified so that the lawyers and litigants are not made to wait unnecessarily," Justice Khare said.

Justice (retired) B N Srikrishna said, "When I became a Judge of the Bombay High Court, then Chief Justice P D Desai had told me that the least a Judge can do is to sit on dot at the scheduled time. That is what I have done in my entire life and I think it is the duty of every Judge to be scrupulously punctual".

Senior advocate and BJP leader Ravishankar Prasad said, "Punctuality is the hallmark of judicial discipline. It is also an essential ingredient of the functioning of all courts, especially the Supreme Court."

In the first M C Setalvad Memorial Lecture in 2005, former CJI R C Lahoti had said, "Four qualities are needed in a judge which are symptomatic of functional excellence. They are punctuality, probity, promptness and patience."

One of the legal luminaries and former CJI M Hidayatullah too had placed great importance on Judges being punctual. According to him a Judge who does not observe punctuality of time does not believe in rule of law, Justice Lahoti had recounted.

Former CJI Y K Sabharwal too had stressed the importance of punctuality for Judges. "A Judge has to be punctual and regular in adhering to the court hours. The need for punctuality and regularity is not only to hve full control over the work but also to have a moral authority to check indiscipline amongst those who are expected to play a role in the functioning of the court, including the court staff, members of the bar, the litigants, witnesses etc."

http://timesofindia.indiatimes.com/india/In-vacation-Supreme-Court-bench-is-late-by-an-hour-every-day/articleshow/20599333.cms

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Discussion / Re: Is Loan from LIC covered under section 43B

« Last post by subash agarwal,Adv kolkata on June 14, 2013, 07:27:06 PM »

If Mr X has taken loan for the purpose of business from LIC, certainly the same is allowable as business expenditure on payment basis as per sec 43B, cl.(d) as LIC is a financial institution as per sec 4A of the Companies Act.

Regds.

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Discussion / Re: applicability os section 2(22)(e) in case of ICDs

« Last post by subash agarwal,Adv kolkata on June 14, 2013, 06:54:04 PM »

Respected Pawanji,

In Bhaumik Colour (P.) Ltd's case 118 ITD 1(Mum) (SB), the issue whether loans & Advances are different than ICDs/deposits never fell for consideration. The issue there was whether deemed dividend can be assessed only in hands of a person who is a shareholder of lender company and not in hands of a person other than a shareholder. The question before the Spl. Bench was answered in affirmative.

Regds.

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Discussion / Is Loan from LIC covered under section 43b

« Last post by damani_ankit@yahoo.com on June 14, 2013, 05:33:22 PM »

If Mr. X took loan from LIC against policy and didn't paid interest for last 3years and didn't claimed Such interest also in return then can he claim the interest paid on such loan in 4th year at the time of payment of such interest under section 43b of income tax act 1961 

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Discussion / Re: applicability os section 2(22)(e) in case of ICDs

« Last post by pawansingla on June 13, 2013, 10:02:13 PM »

issue also covered by special bench judgement of Bhaumik and confirmed by Delhi and Bombay and Rajasthan high court.