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GST - Neither SCN nor the order spell out the reasons for retrospective cancellation of registration, hence cannot be sustained: HCGST - Non-application of mind - If reply was unsatisfactory, details could have been sought - Record does not reflect that such exercise was done - Matter remitted: HCGST - Merely because a taxpayer has not filed returns for some period does not mean that registration is required to be cancelled with retrospective date also covering the period when returns were filed and taxpayer was compliant: HCGST - Petitioner's reply, although terse, is not taken into account while passing assessment orders - Petitioner put on terms, another opportunity provided: HCUnveil One Nation; One Debt Code; One Compliance Rule for Centre & StatesChina moves WTO against US tax subsidies for EVs & renewable energyMore on non-doms - The UK Spring Budget 2024 (See TII Edit)Notorious history-sheeter Mukhtar Ansari succumbs to cardiac arrest in UP jailTraining Program for Cambodian civil servants commences at MussoorieNY imposes USD 15 congestion taxCBIC revises tariff value of edible oils, gold & silver45 killed as bus races into ravine in South AfricaCBIC directs all Customs offices to remain open on Saturday & SundayBankman-Fried jailed for 25 yrs in FTX scamI-T- Once the citizen deposits the tax upon coming to know of his liability, it cannot be said that he has deliberately or willfully evaded the depositing of tax and interest in terms of Section 234A can be waived: HCHouthis attack continues in Red Sea; US military shoots down 4 dronesI-T- Secured creditor has priority charge over secured asset, over claims of I-T Department & other Departments; any excess amount recovered by Secured Creditor from auction of secured asset, over & above the dues payable to it, are to be remitted to the Departments: HCFederal Govt hands out USD 60 mn to rebuild collapsed bridge in BaltimoreI-T - Receipts of sale of scrap being part & parcel of activity and being proximate thereto would also be within ambit of gains derived from industrial undertaking for purpose of computing deduction u/s 80-IB: HCCanadian School Boards sue social media titans for 4 bn Canadian dollar in damagesI-T - Once assssee on year of reversal has paid taxes on excess provision and similar feature appeared in earlier years and assesee had payments for liquidated damages on delay of deliverables, no adverse inference can be drawn: HCFormer IPS officer Sanjiv Bhatt jailed for 20 yrs for planting drugs to frame lawyerST - Software development service & IT-enabled service provided by assessee was exempt from tax during relevant period, by virtue of CBEC's Notification & Circular; demands raised for such period not sustainable: CESTATUN says Households waste across world is now at least one billion meals a dayCus - Order rejecting exporter's request for conversion of Shipping Bills on grounds that the same has been made by exporter beyond period of three months from date of Let Export Order in terms of CBEC Circular No. 36/2010-Cus : CESTATIndia, China hold fresh dialogue for complete disengagement on Western borders: MEACus - No Cess is payable when Basic Customs Duty is found to be Nil: CESTATThakur says India is prepared for 2036 OlympicsCX - As per settled law, a right acquired as result of a statutory provision, cannot be taken away retrospectively unless said statutory provision so provides or by necessary implication has such effect: CESTAT
 
Suggestions for Budget 2018 - Income Tax

JANUARY 22, 2018

By T C Gupta, Advocate

1. HUF - Specified:

The concept of HUF-Specified was removed by the Finance Minister Shri P. Chidambaram in the budget 2006, from 1.4.2007. Earlier, the HUS Specified, where any member of the HUF had taxable income, the income of the HUF was charged at higher rate than none specified HUF, which is charged to tax at the rates prescribed for Individual. The then FM removed the HUF Specified slab from the statute, clandestinely. A Hindu is practically getting double relief of basic exemption limit and other deductions including deduction u/s 80C on its income. Therefore, for augmentation of revenue, to revive the HUF Specified status is a good idea.

2. Appeal Fee for CIT(A) and ITAT:

Appeal fee prescribed under section 249 (1) for filing appeal before the CIT (A) is Rs. 250/- where the assessed income is Rs. One lac or less ; Rs. 500/- where the assessed income is more than Rs. One lac but not more than Ts. Two lac and Rs. 1000/- where the assessed income is more than Rs. two lac. These rates were prescribed in the year 1998. Now the basic limit of taxable income is Rs. 250000/- for Individual, therefore, the rates of 1998 have become outdated and absurd.

The rates of appeal fee require to be revised based on the additional tax/demand raised by the AO and not the assessed income.

The same is the position of fee for filing appeal before the ITAT u/s 253(6). Further, the maximum fee of Rs. Ten thousand is too much and against the express concept of cheap and early (sahaj and sugam nayay) justice. The maximum fee should be Rs. Two thousand.

3. Time limit for the CIT (A) to decide appeal:

As per section 250 (6A), the CIT(A), where it is possible, may hear and decide the appeal within a period of one year ...... . But none of the CITs(A) is deciding appeals within one year, although, in most of the cases it was possible for them to decide the appeal within one year. This provision requires to be made mandatory. The AOs are deciding the assessment orders and other orders within the specified period. For one year a grace period of one year can be given. This proposed amendment will augment the revenue, reduce corruption at the level of the CIT(A) and relieve the taxpayers of the burden of infructuous demand pending for long times. Normally, the CITs(A) decide the appeal on pick and choose basis and not on the chronological order.

3. Impounding of account books during survey u/s 133A:

The power to impound account books during survey u/s 133A (3)(ia) was given to the ITO/AO vide Finance Act, 2002. As per Proviso to clause (ia) The ITO/AO will not impound any books of accounts except after recording his reasons for so doing.

Practically, after 2002, in every case of survey, the AO impounds the books of accounts during survey. Normally, he records reasons that “the books of accounts are impounded for verification.”

This is no valid reason for impounding the books but there is no check on the AO. This amendment has become a tool for the AO to pressurise and harass the person surveyed and for extracting surrender and bribery. Therefore, suitable amendment is required in this provision. The AO could impound the books of accounts only if he gives a certificate of specific incriminating material in the books of accounts to be impounded.

4. 80P deduction to Credit Cooperative Societies:

Deduction u/s 80P should be allowed only to the primary agriculture societies. All other societies, including multi state credit cooperative societies are doing banking and all businesses like cooperative banks. Except, registration with the RBI, a cooperative bank and a coop credit and other societies have no major differences. The so called concept of mutuality is only a sham. None of the societies distribute profits to the public, who are members of the society.

5. Tax on clubs:

The concept of mutuality is only a sham. Tax should be imposed on the excesses and incomes of every club. Clubs are luxuries of wealthy people.

6. Tax on trust and institutions:

All trusts and institutions are amassing wealth in the name of charity. Rarely, anyone does charity. All the Babas, Ram Rahim, Ram Pal, Ravi Shanker, Asha Ram, Virender Dev Dixit, Nermal Baba, Radhe Ma, Radha Swamy and all others are amassing wealth and running parallel governments. Practically none of them is doing any service to the society particularly for the poor of the country. All their collection and savings should be taxed as business income. Even most of the educational and medical institutions are also doing successful good businesses and a major part of income goes in the pocket of the persons running the institutions.


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