Section B

Contents

	Section XXXI--Income Tax Authorities and Their Jurisdiction [Sections 119, 129, 130 and 131]
230.	Application Under Section 119(2) for Granting Relaxation from Certain Provisions
	*Theoretical Issues*
	CBDT's power to avoid genuine hardship to assessees
	Powers to relax time limit for applying for exemption, etc.
	CBDT should pass appropriate orders in terms of section 119(2)(b)
	Power conferred under section 119(2)(b) is to be exercised judicially
	Application where not filed by the assessee
	Condonation of delay
	'Claim' raised in return itself
	Powers to relax any of the provisions of Chapter IV or VI-A
	Conditions precedent to grant of relaxation
	CBDT empowered to declare taxpayer charter
	*Filing of Applications*
	Application for granting relaxation under section 119(2)(a)
	Application for relaxing time limit for applying for exemption, etc. as per section 119(2)(b)
	Application for granting relief under section 119(2)(c)
231.	Handling Notice Under Section 127 for Transfer of Case
	*Contentious and Theoretical Issues*
	Transfer of cases by whom
	Validity of transfer of case where no case pending
	Application under section 127 can also be made by assessee
	Non-consideration of assessee's objections
	Recording of reasons
	Section 127(1) applies even where transfer made between officers of concurrent jurisdiction
	Notice of proposed transfer not served
	Order not disclosing reasons invalid
	Opportunity of being heard to be given
	Commissioner (Appeals) not empowered to decide the validity of a transfer order
	Assessee not to be confronted with the material collected
	Communication of reasons necessary
	Where case is to be transferred despite objection of assessee
	Case--Meaning
	Assessing officer cannot assume jurisdiction without order by CBDT under sec. 127
	Transfer for effective and co-ordinated investigation
	Authority from whom notice under section 143(2) would be issued vis-a-vis same city or locality, etc.
	*Practical Solutions*
	Notice under section 127
	Notice to whom
	Action to be taken on receipt of notice
	Failure consequences
232.	Application Under Section 129 by Assessee for Rehearing of Case
	*Theoretical Issues*
	Change of incumbent of office
	Procedural character
	Rehearing of case
	Demand by assessee for his case being reheard
233.	Faceless Jurisdiction of Income Tax Authorities
	Central Government empowered to make scheme for faceless jurisdiction of income tax authorities
	Power to issue notification providing exception, modifications, etc.
	Notification to be laid before each house of Parliament
234.	Issuance of Summons Under Section 131 to Assessee and Witnesses
	*Theoretical Issues*
	Purpose of notice under section 131
	Powers exercisable under section 131(1)
	Authorities empowered to issue summons
	Pendency of proceeding whether a condition precedent for issuing of summons
	Examination of witnesses
	Power to call records or documents from custody of court
	Power to impound the books of accounts and other documents
	Consequences of non-compliance of summons issued under section 131(1)
	Form and contents of notice under section 131
	*Procedural Aspects*
	Specimen summons to assessees/witnesses under section 131
	Action to be taken on receipt of notice--When presence is demanded
	Specimen petition in reference to summons under section 131
	Books of accounts when required to be produced
	Specimen reply where account books or documents are going to be produced
	Specimen of affidavit where books of account or documents requisitioned under section 131 are not in possession
	Section XXXII--Search Seizure Survey and Seeking of Information [Sections 132, 133, 133A, 133B, 134, 135A and 138]
235.	Application for Issue of Xerox Copies of Seized Books of Accounts
	*Theoretical Issues*
	Inspection and copies of extracts from seized books
	Recording of statement under section 132(4)
	Precaution to be taken while giving statement
	Examination on oath
	Binding nature of statement under section 132(4)
	Presence of counsel
	Cross-examination
	Retraction from statement
	Presumption under section 132(4A)
	Availability of presumption under section 132(4A) in other proceedings of Income Tax Act
	Presumption in respect of cheque seized
	Right to take copy of statement recorded under section 132(4)
	Information which can be demanded as per Right To Information Act, 2005
	*Specimen Statement*
	Specimen of statement under section 132(4)
	*Specimen Applications*
236.	Application Under Section 132(10) for Return of Seized Books
	*Theoretical Issues*
	Retention of seized books of account and other documents
	'Authorised officer' for purpose of section 132(8)
	Effect of according approval with retrospective effect
	Period of retention to be extended in good faith
	Communication of Commissioner's approval and reasons recorded for extension of period
	Remedy available against wrongful retention
	Release of seized assets on furnishing bank guarantee, etc.
	*Specimen Applications*
237.	Procedure for Seizure
	*Contentious and Theoretical Issues*
	Action to be taken for seizure
	Preparation of inventory
	Preparation of Panchnama
238.	Restraint Order Under Section 132(3)
	*Contentious and Theoretical Issues*
	Scheme of section 132(3)
	Asset(s) subject matter of restraint order
	Consequences of violation of order under section 132(3)
239.	Hints for Handling Income Tax Raid
	How to avoid a raid
	How to explain cash
	How to avoid seizure of jewellery
	How to explain excess stock
	Explanation in respect of valuable electronic articles
240.	Application for Providing Details of Requisition Under Section 132A
	*Theoretical Issues*
	Powers to requisition
	Procedure for requisition
	Recording of statement under section 131(1A)
	Application of mind
	Commissioner not empowered to require court to deliver assets
	Applicability of presumption under section 278D(2) to requisition
	Appeal against requisition of goods/assets under section 132A
	*Practical Solution*
241.	Filing of Application for Release of Seized Assets
	*Theoretical Issues*
	Scheme of release of assets
	Retention not justified when disputed amount deposited by assessee
	Retention not justified where penalty proceedings pending
	Release of seized assets where assessee being a bona fide claimant of seized gold jewellery
	Assessee where failed to prove the source of income
	Rejection of application to release after specified period
	Claim to release if not made about ten years
	*Practical Solutions*
242.	Handling Notice Under Section 133 Requiring Furnishing of Information Called for
	*Contentious and Theoretical Issues*
	Purpose of notice under section 133
	From whom information can be called for
	Competent authorities under section 133
	Pendency of proceeding whether necessary for exercising the power under section 133(6)
	Notice to bank calling for information about depositors
	Powers extended to income-tax authority to call for information in certain cases
	Failure consequences
	*Practical Solutions*
	Form and contents of notice under section 133
	Action to be taken on receipt of notice
243.	Application Under Section 133A for Release of Impounded Books of Account
	*Contentious and Theoretical Issues*
	Objective of survey
	Exercise of power of survey
	Authorities competent to conduct survey
	Necessity of prior approval
	Who can exercise power of survey
	Powers of income-tax authorities during survey proceedings
	Power to impound the books during survey
	No addition on basis of statement given during survey
	No addition on basis of loose papers
	*Practical Solution*
244.	TDS, TCS Related Survey
	*Theoretical Issues*
	Enabling provisions for TDS/TCS survey
	Powers of authority conducting survey
	*Practical Solution*
245.	Notice Under Section 133A(5) for Collecting Functions Related Information
	*Theoretical Issues*
	Purpose of notice under section 133A(5)
	Scheme of survey under section 133A(5)
	Power of competent authority under section 133A(5)
	*Practical Solutions*
	Issuance of notice under section 133A(5)--When
	Form and contents of notice
	Proper course of action suggested for the person undergoing inquiry
	Failure consequences
	Action to be taken by the assessing officer after getting necessary information
246.	Justifying Retraction from Surrender Made During Survey
	*Appropriate Reply*
247.	Justifying on Money Allegedly Found During Survey
	*Appropriate Reply*
248.	Addition Towards Investment in Building Resulting from Statement Recorded During Survey Followed by Retraction
	*Appropriate Reply*
249.	Claiming Partner's Remuneration Out of Income Surrendered During Survey
	*Appropriate Reply*
250.	Handling Notice Under Section 133B for Collecting Certain Informations
	*Theoretical Issues*
	Notice under section 133B
	Power to collect certain information
	Competent authorities for purpose of section 133B
	Non-compliance of section 133B
	*Procedural Formalities*
	Format for information to be furnished under section 133B
	Information to be furnished in Form 45D
	Guide lines relating to Form 45D
251.	Notice under Section 133C Seeking Certain Information
	*Theoretical Issues*
	Power to call for information by prescribed income-tax authority
	Proceeding for purpose of section 133C
	Scheme for Centralised Issuance of Notice
	Scheme made inoperative w.e.f. 1-11-2020 as a consequence of insertion of section 135A
	*Practical Solution*
252.	Letter as to Production of All Registers Demanded Under Section 134
	Powers to inspect register of companies
	Notice under section 134
	*Practical Solution*
	Action to be taken on receipt of notice
253.	Application Under Section 138 Seeking Information About Certain Persons
	Furnishing of information sought by applicant
	Power of Commissioner
	Power given to Commissioner under section 138(1)(b) is not arbitrary
	Finality attached to Commissioner's order under section 138(1)(a)
	Action that can be taken by Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner
	*Submission of Application*
	Application to Principal Chief Commissioner or Chief Commissioner under section 138(1)(b)
	Form of application
	Section XXXIII--Filing Returns of Income and Application for PAN [Sections 139, 139A and 139AA]
254.	Filing Return of Income
	*Theoretical Issues*
	Voluntary return of income under section 139(1)
	Return of income to be filed compulsorily person in cartain cases
	Return of income of another person
	Exemption from filing of return of income by coffee growers, being individuals covered by Rule 7B of the Income Tax Rules
	Filing of return under section 139(1) not necessary in certain cases
	Deceased assessees who is to file return and in whose hands income taxable
	How to become a legal heir steps to became legal heir
	Meaning of representative assessee
	CBDT empowered to exempt to a class or classes of persons from furnishing return of income [Section 139(1C)]
	Exemption from Filing of Return of Income--Certain Non-Residents Exempted from Filing Return
	CBDT empowered to dispense with furnishing documents, etc., with the return [Section 139C]
	CBDT empowered to provide for electronic furnishing of return by certain classes of persons [Section 139D]
	Procedure for condonation of delay in filing income tax return
	Verification of return of income [Section 140]
	Return of loss [Section 139(3)]
	Quoting of Adhaar number
	Quoting of Aadhaar Number--Non-applicability of provisions--Provisions not to apply to certain individuals
	Procedure to file a return of income where assessee is a person required to file return under section 139(4A) or section 139(4D)
	Political parties and return of income [Section 139(4B)]
	Procedure to file return under section 139(4C)
	Requirement of furnishing return under section 139(4E) and 139(4F)
	Procedure to file a belated return [Section 139(4)]
	Procedure to revise return of income already filed by assessee [Section 139(5)]
	Filing of revised return--Impact of issuance of intimation under section 143(1)
	Non-filing of return in prescribed Form--Later assessee filed return in prescribed Form but belatedly--Carry forward of losses
	Non-disclosure of claim of loss in original return but disclosed in revised return
	Return persuant to search
	*Consequences of Non-Compliance*
	Consequences of not filing return of income by due date mentioned in section 139(1)
	Consequences of not filing return at all
	*Filing of Return*
	Due date for filing the return of income [From assessment year 2020-21]
	Applicable form of return of income and mode of furnishing of return
	Precautions while filing ITR-7
255.	How to Become e-Return Intermediary
	*Theoretical Issues*
	Overview of scheme
	Who is an e-return intermediary
	Entities eligible to become e-return intermediary
	*Procedural Formalities*
	Where to apply to become e-return intermediary
	Pre-requisite for registration as e-return intermediary
	Hardware requirements
	Software requirements
	Internet connectivity
	The system used to log-on to the computer system of the ITD
	Registration procedure
	Documents to be submitted as proof of fulfillment of eligibility criteria
	Payment of fees
	Submission of documents
	Data Transmission Test
	Terms and conditions for Usage of Digital Signature Certificate
	Procedure to be followed by e-Return Intermediary
	Functions and responsibilities of e-Intermediary
256.	Handling Notice Under Section 139(9) Pointing Out Defects in Return
	*Contentious and Theoretical Issues*
	Return when defective
	Requirements of a proper return
	CBDT empowered to dispense with furnishing of documents, etc., with the return and to provide for electronic furnishing of return by certain classes of persons
	CBDT empowered to provide for electronic furnishing of return by certain classes of persons
	Procedure where return found defective
	Return defective where it contains any of the errors mentioned in Explanation to section 139(9)
	Defects specified in section 139(9) are illustrative and not exhaustive
	Intimation of defect at the discretion of the assessing officer
	Opportunity of hearing
	Without sending notice, a defective return cannot be termed as invalid
	Return of income need not be treated as invalid even where it contains defects mentioned in any of the sub-clauses of Explanation to section 139(9)
	*Practical Solution*
	Issuance of notice under section 139(9)
	Action to be taken on receipt of notice
	Procedure to remove defects in the return of income
257.	Application for Allotment of PAN Under Section 139A
	*Theoretical Issues*
	Obligation to obtain PAN
	Persons required to obtain PAN [Sections 139A(1), 139A(1B), 139A(2) and 139A(3)]
	Class or classes of person to whom provisions of section 139A shall not apply.
	Central Government empowered to notify class or classes of persons who shall apply for PAN if they are liable to pay tax or duty under any law [Section 139A(1A)]
	Central Government empowered to specify class of persons who shall apply for allotment of PAN [Section 139A(1B)]
	Quoting PAN [Section 139A(5)]
	Intimation of PAN by a person receiving income subject to tax deduction [Section 139A(5A)]
	Duty of tax deductor to quote PAN [Section 139A(5B)]
	Sections 139A(5A) and 139(5B) not to apply to certain persons
	Buyer, lessee or licensee referred to in section 206C to intimate PAN [Section 139A(5C)]
	Person collecting tax to quote PAN of every buyer, licensee or lessee [Section 139A(5D)]
	Aadhaar number may be quoted in lieu of PAN [Section 139A(5E) effective from 1-9-2019]
	Ensuring compliance of section 139A [Sections 139A(6) and 139A(7)]
	Duty of person quoting PAN/Aadhar and person receiving documents having PAN/Aadhar [Section 139A(6A) and 139A(6B)]
	CBDT's power to make rules relating to PAN
	Class of persons who shall apply for allotment of Permanent Account Number
	Penalty for failure to comply with provisions of section 139A [Section 272B]
	*Practical Solutions*
	*Procedural Formalities*
	Application for allotment of PAN
	To whom application be made
	When application be made
	Procedure of PAN application through Simplified Proforma for Incorporating Company Electronically (SPICe) (Form No. INC-32) of Ministry of Corporate Affairs
	Form of application for allotment of PAN--Case of Indian citizen/entities formed in India
	Form of application for allotment of PAN--Case of Non-Indian citizen/ entities formed outside India
	Format for verification certificate under rule 114(4)
258.	Furnishing Details of Non-PAN Holders
	*Theoretical Issues*
	Documents pertaining to transactions in respect of which PAN must be quoted
	Duty of certain persons to ensure that correct PAN is quoted [Rule 114C]
	Time and manner in which persons referred to in sub-rule (2) of rule 114C shall intimate details of transaction to department [Rule 114D]
	*Practical Solutions*
	*Procedural Formalities*
	Procedure for Submission of Form No. 60 by any Person who Does not Have a Permanent Account Number and who Enters into any Transaction Specified in Rule 114B of the Income Tax Rules, 1962
	Procedure for Registration and Submission of Form No. 61 as per Rule 114D of Income Tax Rules, 1962
	Section XXXIV--Dealing with Enquiry Before Assessment [Sections 142, 142A, 142B and 143]
259.	Handling Notice Under Section 142(1) Making Inquiries About Assessment Aspects
	*Contentious and Theoretical Issues*
	Notice to assessee requiring him to furnish return, produce documents or books
	Faceless inquiry
	Notice issued and served on assessee beyond a period of one year not invalid in view of proviso to section 142(1)
	Restrictions on the powers of assessing officer
	Start of enquiry by issuing notice
	Requirements in respect of notice
	Contents of a notice
	Approval of Joint Commissioner when requiring assessee to furnish statement of assets and liabilities
	Asking for documents related to a long period
	Requisitioned books of account must be in possession or control of assessee
	Assessing officer to decide which books are required to be produced
	Power available to assessing officer only
	Notice served by affixture held invalid
	Residential status of assessee cannot be determined in the notice under section 142(1)
	Assessee complying with notice under section 142(1) and challenging validity of service directly before Tribunal--Not justified
	Notice under sections 143(3) and 142(1) on the basis of non est return--Not valid
	Notice under section 142(1) can be issued where original assessment was set aside by Commissioner (Appeals) and department was in appeal before Tribunal against such decision
	Notice under section 142(1) issued beyond time-limit--Possible consequence
	Scope of section 142 vis-a-vis section 131
	Whether notice under section 142(1) should precede notice under section 143(2)
	Effect of non-compliance with notice
	*Practical Solutions*
	Issuance of notice under section 142(1)
260.	Handling Notice Under Section Under Section 142(2)
	*Contentious and Theoretical Issues*
	Scope of inquiry by assessing officer under section 142(2)
	Object of inquiry--Obtaining full information in respect of the income or loss
	Assessee to be given opportunity of being heard before use of material gathered under section 142(2)
	Scope of section 142(3)
	Opportunity of hearing--When justified on the basis of facts?
	Consequences of not giving reasonable hearing opportunity
	*Practical Solutions*
	Issuance of notice under section 142(2)
261.	Handling Notice Under Section 142(2A) Issuing Direction for Special Audit
	*Contentious and Theoretical Issues*
	Direction for special audit by assessing officer
	Faceless direction for audit
	Other issues regarding special audit
	Books need not be examined by assessing officer while ordering special audit
	Guidelines for selection of cases for audit under section 142(2A)
	Circumstances in which audit under section 142(2A) can be directed
	Detailed reasons not to be recorded by CIT before approval for special audit
	Challenge to special audit under section 142(2A)
	Necessity of accounts being complex--Special audit directed just before limitation for account
	Non-speaking order passed--Nothing on record to show basis of formation of assessing officer's opinion
	Reason, nature and complexity of material found during search
	Meaning of the word 'complexity' in section 142(2A)
	Who can conduct the audit?
	Duty of assessee
	Opportunity of hearing to be provided before directing for special audit
	Requirement as to personal hearing to assessee
	No opportunity of hearing provided
	Reasonable opportunity of being heard in section 142(2A)--Meaning of
	Direction for special audit under section 142(2A) without following principles of natural justice--Consequence on facts
	Direction for special audit to be based on reasons
	Assessee's books of accounts where complex, direction for special audit justified
	Interference by court as regards to complexity of accounts
	Consequences of non-compliance with direction under section 142(2A)
	Detailed reasons not to be recorded by CIT before approval for special audit
	Approval of special audit can be given by either by the Principal Commissioner or Commissioner or Principal Chief Commissioner or Chief Commissioner
	Issue of application of mind by Chief Commissioner before granting approval to be determined
	Special audit under section 142(2A) where issue already referred to TPO
	Direction for special audit justified where assessee did not bifurcate income as per assessing officer requirement
	Direction for speical audit justified where such direction was based on proper evidence
	Accounts not truthful--Direction for special audit held justified
	Order for special audit validly given after taking into account all material
	Formation of opinion by assessing officer necessary for directing special audit
	No interference through writ permissible where assessee on one hand sought extensions of time for filing report and on other hand challenged direction for audit itself
	Special audit can be directed on basis of documents other than books of account
	No prima facie opinion made against assessee
	Direction for special audit can be given even in a case where assessee's accounts stand audited
	Audit under section 142(2A) is independent of audit under section 44AB
	Difference and scope of audits under sections 44AB and 142(2A)
	Prayer to High Court to hear writ petition on merits
	No violation of principles of natural justice
	No reasons to be recorded for directing special audit
	Direction for speical audit justified where based on proper evidence
	Direction for special audit justified where accounts not truthful
	Special auditor's report cannot be rejected without satisfactory reasons therefor
	Auditor appointed at fag-end of expiry of limitation period for assessment --Validity of such direction and effect on validity of assessment
	Scope of amended sec. 142(2A) explained and need for observance of natural justice
	Specific directions to auditor not fatal to direction itself
	Effect of transactions being subject to transfer pricing
	Principles as to exercise of powers under section 142(2A)
	Power to direct compulsory audit--When it be used?
	Place of special audit
	*Grounds for Challanging Direction for Special Audit*
	Specimen grounds for challenging the direction for special audit
	*Practical Solution*
	Issuance of notice under section 142(2A)
	*Procedural Formalities*
	Form of audit report and duties of auditor
262.	Handling Notice Under Section 142(3) About Aspects Related to Assessment
	*Contentious and Theoretical Issues*
	Assessee shall be given opportunity of being heard
	Scope of section 142(3)
	Opportunity of hearing--When justified on the basis of facts
	*Practical Solutions*
	Issuance of notice under section 142(3)
	Action to be taken on receipt of notice
263.	Notice Under Section 142A(7) Regarding Report of Valuation Officer
	*Contentious and Theoretical Issues*
	Reference to valuations officer
	Faceless valuation
	Reference to DVO, whether can be made without rejecting books of account
	Reference to Valuation Officer--Conditions precedent as to
	Conclusive evidence that there was under valuation in property transaction --Reference to DVO not required
	Reference can be made during the course of assessment and reassessment and not for the purpose for initiating reassessment
	Assessing officer cannot reopen assessment invoking section 142A
	*Practical Solution*
	Issuance of notice under section 142A(3)
264.	Handling Notice Under Section 143(2)(ii) as to Scrutiny Assessment
	*Contentious and Theoretical Issues*
	Issue of notice under section 143(2)
	Circumstances in which a notice under section 143(2)(ii) be issued
	Format of notices under section 143(2) specified
	Issue of notices under section 143(2) of Income Tax Act, 1961 in revised format
	Centralised Communication Scheme, 2018--Notification No. 12/2018, dt. 22-2-2018
	Assessing officer need not to give reasons for issue of notice
	Scope of notice under section 143(2)
	Requisites of notice under section 143(2)
	Notice under section 143(2) can be issued only when any return furnished
	Ingredients of opportunity of hearing
	Dates of hearing
	Adjournments
	Information regarding cancellation or adjournment of hearing--Communication thereof to assessee
	Notice to specify date for attendance or production
	Small error in notice not to invalidate it
	Notice under section 143(2) supersedes intimation under section143(1)(a)
	Second notice under section 143(2) after one year of filing return
	Fresh notice in case of revised return
	Issue of more than one notice under section 143(2)
	Notice under section 143(2) vis-a-vis choice of assessee
	Opportunity of being heard must be of reasonable time
	Issuance of notice despite general offer by Department to make summary assessment in case of small assessee
	Connotation of the word 'evidence'
	Notice in case of death of assessee pending assessment
	Challenge to exercise of power under section 143(2) possible only when there is mala fide on part of authorities
	Consequences of non-compliance with requirements of section 143(2)
	Notice under section 143(2) should not be issued indiscriminately and mechanically
	Assessee not objecting to notice and taking part in assessment proceeding --Assessment held valid
	Notice under section 142(1) not equivalent to notice under section 143(2)
	Issuance and service of notice
	Notice not invalid merely because it did not mention specific clause under which it was issued
	Failure to comply with notice will render assessment valid
	Assessing officer to provide hearing opportunity only when some extraneous material is considered
	Presumption under section 27 of General Clause Act in respect of notice under section 143(2)
	Assessee's objection to notice must be adhered to before passing final assessment order
	Assessment made on the basis of information furnished by the assessee--No hearing opportunity need be given
	Time limit for issuance of notice
	Absence of notice not curable under section 292BB
	Absence of notice and assessment
	Time limit for notice starts from date of filing of return and not from the date of removal of defect
	Time limit for issue of notice where return filed electronically and ITR submitted within time-limit
	Revenue to prove that notice served valid
	Time limit applies to first notice only
	Notice under section 143(2), not served upon assessee within prescribed time--Effect of
	Where assessee participated in assessment proceedings
	Service of notice after date fixed for hearing
	Effect of section 292BB on notice under section 143(2)
	Non-service of notice vitiates proceedings
	Notice served on company itself
	Validity of notice issued before filing of return
	Notice under section 143(2) deemed to be served within three days if issued by registered post
	Service of notice--Deemed validity under section 292BB
	Absence of valid service of notice under section 143(2)--Validity of assessment
	Proceedings started in status of individual but assessment order passed in status of HUF
	Assessee pleading non-issuance of notice pursuant to second revised return--Original return not treated as non est
	Issuance of notice beyond period of limitation
	Notice under section 143(2) must be issued within specified time-limit, service thereof within limitation not necessary
	Notice issued under section 143(2) on a day before last day of limitation--Whether can be treated as served within time limit
	Notice under section 143(2) was not valid where issued within limitation but served after limitation period
	Validity of notice under section 143(2) issued on last date of period of limitation
	Validity of service of notice--Where notice served at eleventh hour
	For issuance of notice under section 143(2)(ii) there is no need to record reasons
	Assessee complying with notice and challenging validity of service directly before Tribunal--Not justified
	Valid notice not served under section 143(2)--Effect of
	Revenue to prove service of notice upon assessee
	Notice not issued on new address
	Notice issued beyond time-limit--Defective return
	Assessing officer in know of new address of assessee
	Failure to issue notice under section 143(2) while framing the assessment on the basis of revised return, filed within stipulated time
	Non-issuance of section 143(2) notice--Applicability of section 292BB
	No valid service of section 143(2) notice
	Assessee not challanging validity of service for a long-time
	Affidavit filed by assessee regarding non-receipt of notice to be believed where revenue failed to prove service of notice
	Order passed giving appeal effect--Whether assessing officer can travel beyond direction of Tribunal?
	Notice issued in the name of deceased person--Assessing officer never informed about death of assessee before issuance of notice--Validity of assessment
	Notice issued under section 143(2) on the basis of original return of income instead of revised return filed by assessee--Validity
	Notice not served within one year of filing return--Validity of assessment
	Notice under section 143(2)--Whether mandatory to serve within prescribed time for completion of assessment under section 143(3)--Effect of section 292BB
	Time limit for notice under section 143(2) where revised return filed
	Notice issued by authority not having jurisdiction
	Date of issuance of notice not to be considered as deemed date of service
	Non-service of notice vitiates proceedings
	Date of issue of notice and not the date of receipt thereof as stated by assessee constitutes base for deciding the limitation
	Onus to prove that notice served within limitation period is on revenue
	Notice served after limitation period not valid
	Assessment framed on non-existing entity
	Scrutiny Assessment--Assessing officer sought to tax premium under section 56(2)(viib) in limited scrutiny--Validity
	Issuance of section 143(2) notice on the very same day of filing return--Non-application of mind by assessing officer
	Non-service of section 143(2) notice within statutory period
	Notice issued in name of dead person
	Notice under section 143(2) not issued within prescribed period
	Order passed in the name of non-existent entity
	Service of notice under section 143(2) at incorrect address
	Service of notice under section 143(2) beyond the period provided under section 143(2)
	Service of section 143(2) notice on person not authorised to received notice or attend proceedings before assessing officer
	Discrepancies in address stated in section 143(2) notice, envelope containing the notice and address noted by Post Officer
	Assessment in name of non-existent company--Whether curable defect under section 292B
	Assessment in name of amalgamated company--Not valid
	Failure to issue notice under section 143(2) while framing the assessment on the basis of revised return, filed within stipulated time
	Non-service of notice under section 143(2) at correct address
	*What Assessee shall Ensure*
	Assessee to ensure that notice under section 143(2) is proper before participating in proceedings
	*Practical Solutions*
	Issuance of notice under section 143(2)(ii)
265.	Handling Notice Under Section 143(3) Showing Intent of Addition to Income
	*Contentious and Theoretical Issues*
	Additions can be made under section 143(3) even where accounts are not rejected under section 145(2) [Now section 145(3)]
	Section 143(3) versus section 145
	Assessing officer has power to include determination of interest under section 143(3)
	Burden on revenue to prove that assessee made more profits than returned
	Profits do not depend only on amount of capital invested
	Exempt amounts cannot be brought to tax
	Law does not oblige a trader to make maximum profits
	Addition to income on basis of finger print expert's report--No opportunity provided to assessee to cross examine the expert
	Alleged payment of "pagree" by tenants
	Law does not oblige a trader to make maximum profits
	Accrual of interest on stagnant loan
	Application of higher net profit rate--Reduction by appellate authority
	Claim of gift by stranger from abroad who became friend of assessee--Neither genuineness of transaction nor details of donor given
	Discrepancy in income as per books and as per statement found in search
	Entries made in third party diary indicating unrecorded sales
	Goods sold at concessional rate
	Interest on borrowed capital--Debit balance in some partners' account
	No proof of actual expenditure--Addition on ground of cash deficit in cash books
	Statements of partners during search retracted--Retraction supported by proper evidence
	Additions agreed by assessee cannot be reverted back by him
	Business started by assessee's son who was 17 years old--No addition can be made in hands of assessee
	Income from share transferred in name of unborn person not taxable in hands of assessee
	Revaluation of assets disclosed under VRS does not give rise to income
	Addition on the basis of statement recorded under section 132(4)
	Investment in building not included in return filed post survey--No addition permissible
	Alleged unexplained cash found during course of search
	Alleged unexplained income from premium
	Benami income of assessee's wife and son
	Depreciation allowable separately where profits are estimated
	Addition not justified in individual's hands where ownership of ornaments found during search claimed by HUF
	Notional interest on interest free advances given to subsidiary company cannot be added to assessee's income
	Addition not sustainable where gift proved to be genuine
	Unexplained cash assessed in other assessee's hands--No addition permissible
	Addition on the basis of estimated profits not justified where no defect in books of account
	Addition on the basis of excess cash already added as surrendered income not justified
	Addition on the basis of entry in loose sheet found from possession of third person--Not justified
	No addition can be made on the basis of diary seized from third party's possession--Burden of proof on revenue
	Addition made on the basis of third party's information--Revenue did not establish that assessee kept certain funds outside books
	Addition on the basis of seized documents which were here confronted to assessee--Not justified
	Ad hoc addition--No defects in books of account
	Assessment in the hands of one of the partners--Whether same income can be taxed or added in the hands of assessee-firm
	Addition made for alleged low cost of construction of building constructed by assessee-builder on basis of valuer's report--Not justified
	Additions made without disproving evidence led in support of assessee's claim--Not justified
	Addition made solely on the basis of show-cause notice issued by Central Excise Authorities--Not justified
	"Transfer fee" received by assessee-society on transferring offices/flats to outsiders by existing members for consideration--Chargeable to tax
	Addition to income on the basis of stock belonging to assessee's son stored in assessee's business premises--Not justified
	Addition on the basis of certain accounts not reconciled--Justified
	Addition held justified where goods sold to sister concern at low prices
	No addition can be made merely on assumptions or presumptions or surmrises or conjectures
	Reasons not given for increasing sales while estimating income--Addition not justified
	Failure of revenue to produce relevant document on basis of which addition was made
	Addition on account of excess consumption of raw-material and inputs--Justified
	Addition on the basis of difference between total turnover recorded by assessee and data furnished by NSE--Reconciliation statments not taken into consideration
	Addition not justified where money raised via gifts and unsecured loan from relatives--Revenue did not dispute genuineness of transactions
	Additions to income in respect of unexplained investment not justified where investment not belonging to assessee
	Addition justified where business carried out in employee's name
	Assessing officer using choose and pick method to make addition--Not justified
	Addition cannot be made only on basis of surrender made during survey
	Admission in survey cannot be made sole basis for addition
	Addition on basis of statement of unrelated person recorded during survey
	Addition to income on the basis of retracted statement--Justifiability
	Additions to income based on statement recorded at back of assessee in survey
	Loose papers found during survey and statement under sections 133A/131
	Whether income surrendered during survey included in returned income?
	Addition on the basis of entries on loose papers impounded during survey
	Addition on the basis of entries on loose papers impounded during survey justified
	Addition on basis of statement recorded during survey
	Addition can be only of peak credit
	Assessee not submitting evidence in his support--Addition upheld
	Addition on basis of production--Justified
	Addition on the basis of alleged unexplained cash balance
	Mere declaration of number of subscribers in advertisement brouchers cannot be a valid ground for addition to income
	Assessment in the hands of one of the partners--Whether same income can be taxed or added in the hands of assessee-firm?
	Addition on account of construction cost
	Addition on the basis of sale of goods at different rates at different places
	Amount not claimed as expenditure--No addition can be made by way of disallowance
	Addition on account of non-deduction of TDS
	Addition in the hands of HUF in respect of money received on sale of land belonging to HUF
	Withdrawal of cash and alleged payments made to 'Karigars' not supported by vouchers--Addition held justified
	Addition to income without following principle of natural justice--Not justified
	No evidence to establish that income added by assessing officer was ever received by assessee or account belonged to assessee
	Addition without summoning witness as requested by the assessee under section 131--Assessment not valid
	No addition for stock physically found in excess on date of survey can be made where credit purchases bills were not accounted for on date of survey
	Stock found in excess during survey fully explained--No addition permissible
	Revenue cannot accept/reject transactions on selective basis
	Loan to sister concern out of assessee's own funds--No addition for charging lesser rate can be made
	Addition towards unaccounted sale was not justified where there was no material to suggest that any sales were made outside the books of account
	Addition without summoning witness as requested by the assessee under section 131--Not sustainable
	Addition after best judgment assessment--No details brought on record in support of addition
	Addition on ground of ingenuine or self made voucher
	Addition on the basis of DVO's report
	Addition on Basis of AIR Information
	Addition on Basis of Entry in Form No. 26AS
	Discrepancy of receipts between 26AS data and P&L account
	Alleged excessive freight payment--Addition on estimation basis only
	Assessing officer not doubted consumption of material
	Estimation of net profit rate--Depreciation not allowable
	Estimated profit by applying net profit rate--Depreciation claimed separately
	Gross profit rate disclosed in subsequent years accepted by assessing officer
	Estimation of GP rate
	Low profit could not be ground for rejection
	Purchases cannot be treated as bogus where assessee had filed all the necessary details with regard to the transaction
	Choice of proper comparable while making addition on gross profit rate basis
	Assessing officer applying arbitrary gross profit rate
	Comparable cases--Construction company vis-a-vis company engaged in consultancy for construction
	On-money received from sale of flats and shops--Failure to account for expenditure corresponding to on money
	No rejection of books of account by assessing officer
	Addition made on the basis of book entries not permissible where books rejected
	Account in which amount had been deposited did not belong to the assessee
	Addition towards low household expenses on ad-hoc basis--Effect of
	Additions towards suppressed sales and closing stock--Return filed under section 44AD--Justifiability
	Additions under section 143(3)--Ad-hoc rate of commission applied by assessing officer on purchase of goods without rejecting books of account
	Ad-hoc disallowance not justified where genuineness of expenditure not doubted
	Annual letting value computed by assessing officer without deducting rental refunded back to tenant and excluding service tax portion from gross rental charged--Validity of
	Assessee working on lower gross profit ratio due to competition--Justifiability of addition
	Disallowance made without pointing out any defect--Justifiability
	Estimation of Income--Only transfer of advances involved--No deemed sales
	Reliance on statement of third party--Where assessee not allowed to cross-examine the third party
	Estimation of higher gross profit rates
	Profits from undisclosed deposits, being unaccounted sales, held to be estimated at 25 per cent of amount involved
	Ad-hoc disallowance without any basis not permissible
	Only profit element can be added where contractual receipts were undisclosed
	Addition on non-CASS issues without obtaining due permission from superior authorities
	Difference in income declared in return and that shown in Form 16A--Assessee having filed reconciliation statement
	Allegation as to introduction of unexplained cash in the guise of sale of Sarees
	Creditors treated as unexplained--Reason, section 133(6) notice issued to one of the creditors returned unserved
	Allegation as to unaccounted opening cash balance
	Additions to income--Earning of commission income on local purchases
	Addition towards unreconciled contract receipts on the basis of turnover reported in books of account and turnover appearing in Form 26AS--Assessee civil contractor not having filed supportive evidences
	Addition on basis of AIR information--Difference in interest income reported by assessee and that reflected in the books of payer
	Addition on account of difference in gross receipts
	Addition on account of failure to account for accrued income
	Earning of commission income on local purchases
	Earning of commission on accommodation entries provided from loans and advances and also on imports
	Notional interest on partner's debit balance
	Revised computation of income not considered by assessing officer due to non-filing of revised return of income
	Ad hoc disallowance--Telephone and administrative expenses--Personal element
	Ad hoc disallowance of various expenses--No specific findings by assessing officer in terms of expenses not been incurred for the purpose of business or bogus in nature
	Rate of commission on business of providing accommodation entry
	Addition by treating agricultural income as income from other sources--Validity of addition made
	Addition on account of mismatch between receipts reflected in Form 26AS and in profit and loss account--Validity of addition
	Amount offered by member of assessing officerP, whether to be taxed in hands of assessing officerP
	Assessee pleading taxation of same income in subsequent year
	Corresponding income against the amount of TDS offered to tax by assessee in subsequent year--There was no change in the rate of tax for the year under consideration vis-a-vis in subsequent assessment year
	Difference in creditors balances
	Discrepancy of receipts between 26AS data and P&L account
	Estimation of profit without rejection under section 145(3)
	Estimation of unexplained investments in working capital in case of estimation of profit
	Notional interest on vendor financing
	Addition on account of difference in gross receipts as per contract agreements entered into by assessee and gross receipts shown in profit & loss account
	Additional profit added by assessing officer without having considered the expenditure incurred and accounted by assessee
	Allegation of suppressed production--On the basis of excess consumption of manufacturing cost and electricity consumption--No adverse material brought against assessee
	Alleged over valuation of closing stock--Assessing officer failed to bring anything on record suggesting that he had revised closing stock of earlier assessment year
	Assessing officer made addition by adjusting security deposit against unrealised rent --Security deposit offered to tax in subsequent year
	Application of higher net profit rate
	Credit claimed of TDS being in excess of revenue shown by assessee from its operation
	Difference in value of debtors as per statement given to bank and as per audited annual accounts
	Difference in value of stock as per bank statement and as per audited annual accounts
	Disallowance of provision for non-moving obsolete stock
	Difference in opening versus closing cash balance
	Provision written back disallowed in earlier year--Reason, non-filing or revised return within stipulated time
	Sales return not included in stock register
	Shortage of stock--Assessing officer failed to prove based on documentary evidence that it had incurred quantity loss during manufacturing process
	Shortage of stock
	Unreconciled AIR entries
	Prior period expenses got crystallized during relevant year
	Set-off of prior period expenses against prior period income
	Disallowance of 30% expenses under the head 'conveyance and travelling' and vehicle maintenance--Reason, vouchers were self-made
	Disallowance of prior period expenses--No such expenses claimed in computation of income
	Disallowance on account of under reporting of commission by assessee--Assessing officer not having considered reconciliation furnished by assessee
	Addition on non-CASS issues--Assessing officer not having obtained approval from Pr. CIT/CIT for complete scrutiny
	Assessing officer widened the scope of scrutiny assessment under CASS without having sought prior approval of higher authorities
	Assessee pleading its case to have been selected for particular issue
	Estimation of net profit at higher rate than what stated in show cause notice issued by assessing officer--Sale of liquor
	Hire purchase agreement--Adoption of EMI vis-a-vis SOD method
	Purchases from unregistered dealers treated as bogus entries for want of evidences--Assessee in penalty proceedings produced affidavits of concerned unregistered dealers
	Commission on deposit in assessee's bank account relating to accommodation entries given by assessee--Assessee unable to provide list of beneficiaries
	*Practical Solutions*
	Issuance of notice under section 143(2)
266.	Addition Towards Bogus Purchases
	Prologue
	Genuineness of purchases could not be doubted where supplier provided all details
	Bogus purchases not proved by revenue--Addition on that count deleted
	Addition on the ground of bogus purchases cannot be made where gross profit rate had already been applied
	Default on part of State suppliers not to result in bogus purchases
	Additions to income towards bogus purchases where only secondary evidences were made available by assessee and primary evidence like purchase bills not produced
	Addition to income towards bogus purchases where assessee was engaged into dealings in grey market
	Mere denial under section 133(6) not to affect purchases
	Addition to income--Difference in purchase made--High volume of transactions
	Bogus purchases--Only profit element to be added
	Where entire purchases proved to be bogus--Still profit element to be added
	Estimation of income on account of bogus purchases
	Unverified purchases
	Purchases where duly reflected in banks of accounts cannot be treated as bogus
	Purchases from party accepted as genuine in earlier years
	Where assessee proved genuineness of purchases with documentary evidences--Purchases made through an agent
	Bogus purchases by accommodating entries
	Addition towards bogus purchases only on basis of suspicion
	Addition towards difference in purchase made without any evidence
	Addition only on basis of statement of third party
	Addition only on basis of statement given by third parties to sales tax department
	Where no hearing provided
	Non-appearance of supplier but assessee producing supporting documents
	Where identity of suppliers established
	Where quantitative tally of sales was furnished
	Purchases property recorded in books
	Addition only on basis of information from sales tax department/excise department
	Where assessee proved genuineness of purchases
	Where sales made by assessee not doubted
	Where sales made by suppliers not doubted
	No addition merely because seller declared as hawala dealer
	Assessee failed to prove genuineness of transaction of bogus purchase--Entire amount to be added
	Nature and source of purchase explained by assessee
	No proof that amount returned back to assessee
	Bogus purchases by accommodating entries
	Gross profit rate on bogus purchases only can be added
	Where books not rejected--Only profit element can be added
	Purchases from hawala dealers--Only profit element can be added
	Undisclosed purchases--Only profit element be added
	Assessee beneficiary of hawala entries
	Addition on account of allegedly Unverifiable purchases
	Purchases proved to be genuine
	Where assessee produced all details
	Non-production of suppliers--But only profit element can be added
	*Practical Solutions*
267.	Addition Based on Stock Statement Submitted to Bank
	*Contentious and Theoretical Issues*
	Addition justified where there was difference between stock pledged with bank and stock shown in books
	Stock shown in books being lower than stock declared to bank
	Addition justified where inflated stock declared to bank accepted by assessee
	Discrepancy between stock declared to bank and that shown in books not explained--Addition held to be justified
	Addition where higher stock declared on estimate basis
	Stock declared to bank not based on stock determined on physical verification
	Stock declared to bank but not verified by bank
	Discrepancy between stock hypothecated to bank and stock shown in where books explained
	Discrepancy between stock declared to bank and shown in stock register but during checking no discrepancy found by government agencies
	Discrepancy not substantiated by assessing officer
	Difference only during the year and not on last day of previous year
	Difference between value of stock declared to bank and that declared in return--Reduction to be made in value of opening stock
	Addition to income not justified where assessee's explanation as to difference between stock notified to bank and as recorded in books, was not discarded
	Assessee explaining that higher stock declared to bank just to avail of higher credit facility
	Stock as per books of account should be accepted
	Only peak amount should be added
	Justifiability of addition under section 69B, where difference between book value of stock and the stock value furnished to bank
	Penalty for concealment not leviable where there was difference in stock statements given to bank and stock as per books of account
	Assessing officer to take into consideration opening stock figures as well
	Assessing officer made addition based on stock statement submitted with bank--Not checked other records
	Assessing officer made addition based on stock statement submitted with bank--Not checked other records
	Discrepancy in stock statement not explained
	Addition on basis of inflated stock statement submitted to bank--No difference in quantity of stock--Difference arising due to method of valuation
	*Practice Tips*
268.	Explaining Discrepancy in Stock Declared in Statement Furnished to Bank and that Shown in Books of Assessee
	*Appropriate Reply*
269.	Notice Seeking to Deny Depreciation on Assets Acquired on Hire Purchase
	*Contentious and Theoretical Issues*
	Acquisition of asset on hire purchase
	CBDT circular as to allowability of depreciation in case of assets acquired on hire purchase basis
	Analysis of Circular No. 9 of 1943, dt. 23-3-1943 reiterated by Instruction No. 1097, dt. 19-9-1977
	Depreciation allowable on assets acquired on hire purchase basis--Judicial view
	Depreciation not allowable on assets acquired on hire purchase basis--Other view
	Depreciation on vehicle purchased on hire purchase basis and rented out thereafter --Allowable
	Assets other than plant and machinery on hire-purchase--No depreciation admissible
	Depreciation on houses acquired from Housing Board under hire purchase agreement--Not allowable
	Depreciation on vehicles hired out is not allowable
	Sum total of discussion so far
	*Practical Solutions*
	Section XXXV--Dealing with Basic Assessment Related Notices and Issues [Sections 143, 144 and 144A]
270.	Intimation Under Proviso to Section 143(3) About Certain Entities
	*Theoretical Issues*
	Assessment of non profitable organizations [First proviso to section 143(3)]
	Assessing officer empowered to make recommendation for withdrawal of approval granted under section 35(1)(ii)/35(1)(iii) [Second proviso to section 143(3)]
	Assessing officer need not to grant exemption under section 10(23C) in certain cases [Third proviso in section 143(3)]
	*Procedural Formalities*
	Intimation by assessing officer to Central Government or prescribed authority
271.	Handling Notice Under Section 144 as to Best Judgment Assessment
	*Contentious and Theoretical Issues*
	Section 144 attracted on non compliance with various provisions
	Determination of total income or loss
	Procedure for making best judgment assessment
	Power under section 144 be exercised judiciously
	Opportunity of being heared
	Non-compliance to be proved by the assessing officer
	Insufficient opportunity for furnishing evidence
	Assessee's failure to represent in assessment proceedings as well as in revisionary proceedings--Impact of
	Receipt of notice of hearing on the same date
	Opportunity must be real and effective
	Discovered material should relate to relevant assessment year
	Instances where estimate arrived at by assessing officer held unjustified
	Best judgment assessment must conform to the principles of equity and justice
	Validity of best judgment assessment in case of bad service of notice
	Addition by estimation without any basis of record/reference--Validity
	Estimation by making sweeping observation--Addition on account of sale of scrap
	Ad hoc disallowance--Validity of
	*Practical Solutions*
	Issuance of notice under section 144
	Action to be taken on receipt of notice
272.	Handling Notice and Application for Direction under Section 144A
	*Theoretical Issues*
	Joint Commissioner empowered to issue instructions to the assessing officer
	Opportunity of hearing
	Directions as to investigation--Not to be deemed as prejudicial to the assessee
	Object behind enactment of section 144A
	Power of Joint Commissioner co-terminous with the powers of the assessing officer
	Letter addressed to assessee does not amount to direction under section 144A
	*Practical Solutions*
	Issuance of notice under section 144A(1)
	Action to be taken on receipt of notice
	*Procedural Formalities*
	Application under section 144A
273.	Affidavit Against Mentioning of Non-Presence by an Authority
	Why affidavit
	Specimen affidavit
274.	Handling Notice Regarding Valuation of Stock under Section 145A
	Method of accounting in certain cases
	Section 145A versus ICDS-II
	ICDS-II : Valuation of Inventories
	A. Principles Regarding Stock Valuation
	Valuation of stock is to be made on the last day of the accounting year
	Method to be in accordance with well accepted accounting principles
	Year for the purposes of valuation of stock should be a period of 365 days
	Adjustment made in value of closing stock and effect on value of opening stock
	Closing stock to be taken as opening stock of the next year
	Two different methods cannot be used for valuing closing stock
	Valuation accepted by sales tax authorities--Effect of
	Method of valuation of closing stock regularly employed--Resulting in having notional profits to be rejected
	Deduction of notional brokerage
	Adjustment to effect both opening and closing stock
	Disallowance of depreciation on investment held as stock-in-trade
	B. Valuation Under Particular Circumstances
	Valuation of stock inherited
	Treatment of foreign exchange fluctuation
	Goods where saleable in foreign market only
	Subsidy yet to be received from the government
	Treatment of bonus paid to employees
	Closing stock lying at quarry
	Goods where of inferior quality
	Valuation of goods meant for export
	Valuation of stock of uncleared goods
	Treatment of cess in the value of closing stock
	Inclusion of warranty amount
	Case of fall in gross profit rate
	Valuation using average prices
	Valuation of stock of garments which allegedly became out of fashion
	Assessee engaged in trading and manufacture of gold ornaments
	Method to be in accordance with well accepted accounting principles
	Treatment of outright freight on manufactured goods
	C. Treatment of Excise Duty/Customs Duty
	Excise duty on stock not cleared from factory
	Where goods were removed from factory
	Addition of excise duty to value of closing stock and opening stock
	Stock where subject to excise duty
	Exclusive method of valuation and effect of section 43B
	Gross or net method of Modvat now Cenvat credit what is applicable while valuing closing stock?
	Assessee followed exclusive method of accounting
	Inclusion of unutilized Modvat credit
	Treatment of MODVAT in valuation
	Treatment of customs duty on imported raw materials
	Treatment of excise and customs duties on stock lying in warehouse
	Customs duty not includible in valuation of closing stock
	Non-inclusion of excise duty and customs duty
	Inclusion of excise duty--Closing stock still lying in warehouse
	Excise duty Personal Ledger Account (PLA) balance shown under loans and advances --Addition of PLA balance on value of stock--PLA balance included advance payment
	D. Business Reorganisations
	Valuation of stock of a firm in liquidation
	Stock taken over from amalgamating company
	Opening stock of erstwhile firm
	Transfer of business as going concern
	Dissolved firm taken over by reconstituted firm
	Valuation of stock where business of firm did not cease on death of partner
	Closing stock to be valued at lower of cost or market value where surviving partner continues the business
	Conversion of firm into private limited company
	Where proprietary business converted into partnership business
	Dissolution where had taken place on death of one of the partners
	Customs duty payable on raw-material imported but not cleared
	E. Service Contracts
	Applicability of provision of section 145A to service contract
	Service tax billed to service receivers--Whether includible as trading receipt
	Method of valuation--Non-consideration of principle of AS 2
	*Practical Solution*
	Issuance of notice
	Action to be taken in respect of notice
275.	Proving that not Following Inclusive Method of Accounting as per Section 145A Does not have Any Impact on Profits and thus Tax Neutral
	*Appropriate Reply*
	Section XXXVI--Dealing with Reassessment Related Notices [Sections 147 and 148]
276.	Handling Notice under Section 148
	*Contentious and Theoretical Issues*
	*I. Reassessment Provisions at a Glance*
	Introduction
	Income escaping assessment [Section 147]
	Issue of notice where income has escaped assessment [Section 148]
	Time limit for issuance of notice [Section 149]
	Provision for cases where assessment is in pursuance of an order on appeal, etc. [Section 150]
	Sanction for issue of notice [Section 151]
	Other provisions [Section 152]
	Faceless reassessment
	*II. Basic Principles as to Reassessment*
	Conditions precedent for reassessment
	Scope and applicability of Explanation 2 to section 147
	Conditions precedent for initiating proceedings under section 147
	Validity of reassessment where there was no omission or failure on the part of assessee
	Reopening not valid where assessment proceedings initiated under section 142(1) pending
	Jurisdiction under section 147 only to such income which has escaped assessment and belongs to assessee
	*III. Reason to Believe*
	Importance of reason to believe
	Reassessment not valid where there was no ground for reason to believe escapement
	What constitute reason to believe
	Reason to believe--A condition precedent to reopen
	Principles as to reason to believe
	*IV. Change of Opinion*
	Validity of reopening on change of opinion
	Decisions showing that mere change of opinion does not give jurisdiction for reopening
	Position vis-a-vis 'change of opinion' after 1-4-1989, under the new law
	Reopening on same set of facts amounts to change of opinion
	Where issue examined in detail in original assessment
	Assessing officer already applied mind to issue in original assessment--Reopening to reassess same
	Issue minutely examined during scrutiny assessment proceedings--Validity of reopening
	Validity of reopening where all details examined during original proceedings
	No fresh material coming into possession of assessing officer
	Original assessment completed under section 143(3)--When can be reopened
	*V. Reopening on Various Basis*
	Re-opening on basis of audit objection only
	Reopening of assessment on the basis of opinion of audit party
	Reopening of assessment not permissible on the basis of report of valuation officer
	Information Received from the Investigation Wing--Whether can be a ground for reopening
	Conditions to be satisfied for reopening beyond a period of four years from the end of the relevant assessment year
	*VI. Whether Assessing Officer can Initiate Proceedings under Section 147 when the Time for Issuance of Notice under Section 143(2) had not Expired*
	View that reopening not valid
	Other view
	Effect of pendency of assessment
	No discussion about issue involved in original assessment
	Reassessment proceeding cannot be initiated without disposing of return
	Reopening of assessment within four years
	Recourse to reopening only when ingredients of section 147 existing
	Assessment made after proper enquiry under section 143(3)--Reopening not justified
	*VII. Extension of Reopening to Other Issues : Scope of Explanation 3 to Section 147*
	Applicability of Explanation 3 to section 147
	Reassessment on issues other than on which notice under section 148 was issued--Possibility in the light of Explanation 3 to section 147
	Addition towards other income can be made only if issue for reopening results in addition
	Applicability of Explanation 3 to section 147 where reopening of assessment was made on one ground but addition was made on another grounds
	Assessing officer made addition on complete new issue without making addition on issue forming basis of reopening of assessment
	Issuance of second notice under section 148 without completing pending reassessment proceedings
	Sections 142(1) and 148 cannot operate simultaneously
	*VIII. Full and True Disclosure*
	Statutory provision requiring full and true disclosure
	Twin conditions need be satisfied
	No indication in notice that there was any failure on the part of the assessee to truly and fully disclose all material
	What will not amount to disclosure [Explanation 1 to section 147]
	Conditions to be satisfied for reopening beyond a period of four years from the end of the relevant assessment year
	Condition precedent for reopening under first proviso to section 147
	Reopening not permissible where assessing officer fails to draw correct interpretation from facts disclosed by assessee
	Reopening not justified where assessing officer completed assessment without making necessary inquiries
	No tangible material before assessing officer
	*IX. Notice for Reopening [Section 148]*
	Issue of notice where income has escaped assessment [Section 148(1)]
	Recording of reasons [Section 148(2)]
	Status of notice under section 143(2) issued after time limit
	Requisites of a valid notice
	Entitlement of assessee to get copy of recorded reasons along with notice issued under section 148
	Recording of reasons
	Proper course on receipt of notice under section 148
	Notice not served on proper person is invalid
	Procedure to be followed for notice under section 148
	Time limit for issuing notice under section 148
	Time limit for issue of notice in case of reassessment of agent of a non-resident
	Defects in notice
	Notice under section 148--Served on earlier address of assessee--Department however aware of current address
	Whether notice under section 148(2) shall accompany reasons for issuance of such notice?
	Time-limit for issue of notice under section 143(2) not expired--Whether notice under section 148 can be issued?
	Notice to be served
	Notice, to be valid, to be served on proper person
	Notice describing person on whom notice served wrongly
	Notice to be treated as valid if out of several grounds mentioned in the notice at least one is good
	Notice to be treated as valid if based on reliable evidences
	Necessity of conclusive belief while issuing notice under section 148
	Notice issued after period of limitation
	Notice issued within period of limitation but served after expiry of limitation period--Validity
	Notice for reopening after expiry of four years--Justification
	Earlier notice issued under section 148 yet to be disposed of in view of High Court's direction--Issue of a second notice
	Assessing officer to record reasons before issuing a notice under section 148
	Non-recording of reasons in notice under section 148--Notice held invalid
	No bar against issue of second notice
	Issue of notice for a reassessment on the basis of report upon which even assessment cannot be done
	Action of the assessing officer not well founded--To be interfered with
	Notice issued alleging dissolution of assessee firm whereas there was mere change in constitution of firm
	Notice under section 148 without proper ground thereof
	Notice invalid where the amount alleged to have escaped income is under dispute
	Notice invalid if excise or customs duty had been paid before filing return of income
	Prima facie case of escapement--Notice can be issued
	Sufficiency or correctness of material on the basis of which notice can be issued cannot be judged by the court
	Reopening on basis of statement recorded during survey
	*X. Notice Under Section 148 to Different Assessees*
	Notice to association of persons (AOP)
	Notice to company
	Notice to firm
	Notice to HUF
	Notice to executors
	Notice to legal representative
	Notice to authorised representative
	Notice to minors
	Notice to receiver
	Notice to agent of non-resident
	Status cannot be changed in reassessment proceedings
	Re-opening of assessment for taxing capital gains in the hands of assessing officerP which was previously taxed in the hands of the individuals
	*XI. Validity of Notice*
	Validity of notice served on only one of the legal heirs
	Notice under section 148 cannot be issued where assessee acted in good faith
	Validity of notice where petitioner acquitted of criminal charge by court of special judge
	Notice issued within period of limitation but served after limitation period
	Limitation for notice--Post office collected notice for revenue on last day of limit and delivered to assessee later on
	Notice invalid if conditions for issue of notice do not exist
	Issue of notice on direction of Commissioner
	Assessee provided with the copy of notice--Whether sufficient compliance?
	Notice issued to non-existent entity
	Once the assessee acts on the notice issued even if served wrongly, then the proceedings taken in relation to such a notice are valid
	Second notice under section 148 issued during pendency of proceedings of first notice--Held invalid
	Service of notice on unauthorized person--Not valid
	Section 148 notice issued without examining and corroborating information received from survey wing before recording reason to believe as to escapement of income
	Notice under section 148 served on the wife of assessee who was not legally authorised
	No evidence as to service of notice--Reopening invalid
	Service of notice under section 148 at wrong address--Reopening invalid
	Notice under section 148 by assessing officer having no jurisdiction
	*XII. Recording of Reasons*
	Assessing officer to record reasons before issuing a notice under section 148
	How reasons be recorded
	Communication of the reasons to the assessee
	Disclosure of reasons recorded to assessee
	Reasons to be produced before higher authority where sanction required to be taken for reopening
	Justifiability of reassessment where no reasons were recorded with respect to escaped income exceeding Rs. one lakh or more
	*XIII. Furnishing of Reasons to Assessee and Dealing with his Objections*
	Supreme Court decision in GKN Driveshafts (India) Ltd. v. ITO 2003 TaxPub(DT) 734 (SC) : (2003) 259 ITR19 (SC)
	Contentions which can be raised in a case against recording of reasons and sanction thereof
	Disclosure of reasons to the assessee, when?
	Non-communication of reasons for reopening--Effect on validity of reopening
	Reasons for re-opening must be available on record
	Obligation of assessing officer to pass a speaking order on the objections filed assailing reopening of assessment
	Assessing officer failed to pass speaking order against objections raised by assessee
	*XIX. Non Furnishing of Reasons Recorded to Assessee*
	Effect of non-communication of reasons recorded in spite of request by assessee
	Objection of assesse to be disposed of first
	Assessing officer failed to pass any speaking order in disposing of assessee's objections
	Non-disposal of assessee's objections to reasons for reopening
	*XX. Necessity of Service of Notice*
	*XXI. Reassessment Proceedings and Requirement of Issue of Notice Under Section 143(2)*
	Why notice under section 143(2) ought to be issued when the return is furnished in response to notice under section 148
	Necessity of a notice under section 143(2) once return in response to notice under section 148 is filed
	Reassessment not valid in absence of notice under section 143(2)
	No notice under section 143(2)
	Validity of assessment--Where notice under section 143(2) issued belatedly
	Assessing officer issued notice under section 143(2) without waiting for 30 days after issue of notice under section 148--Validity of reopening
	Validity of reopening--Absence of notice under section 143(2)
	Non-serving of notice under section 143(2)--Validity of reassessment
	Non-issuance of notice under section 143(2) within statutory time limit and validity of reassessment
	Reasons for issue of notice under section 143(2) where reassessment is made--Summarised
	*XXII. Sanction for issuance of notice*
	Manner of recording satisfaction
	Mechanical approval for reopening vitiates reassessment
	Opportunity of being heard--Prior to according sanction by Commissioner
	Approval of JCIT not obtained but of higher authority obtained
	Procedure to be followed by CIT before granting sanction
	Approval from wrong authority amounts to no approval
	Approval obtained from Addl. CIT and not of CIT--Validity of
	Non-recording of proper satisfaction--Assumption of jurisdiction under section 147/148 on basis of invalid and mechanical approval
	Mechanical approval granted by Addl. CIT under section 151
	*XXIII. Miscellaneous Issues*
	Resort to reopening--Possibility where assessee's case was covered by section 153C
	Income of deceased escaped assessment--Notice under section 148 issued to legal representative of deceased--Validity of
	Proceedings under section 153A already pending before Commissioner (Appeals) on the same subject matter--Validity of notice under section 148
	Second time reopening--Whether justified?
	Notice issued in the name of the dead person
	Issuance of second notice under section 148 without completing pending reassessment proceedings
	Sections 142(1) and 148 cannot operate simultaneously
	*Practice Tips*
	Principles as to reopening
	*Practical Solutions*
	Issuance of notice under section 148
277.	Letter Requesting for Issuance of Notice Under Section 148
	*Specimen Letter*
278.	Challanging Validity of Reopening Where Sanction for Issue of Notice Not Taken
	*Appropriate Reply*
279.	Challanging Notice for Reassessment in the Name of Deceased
	*Appropriate Reply*
	Section XXXVII--Handling Post Search Assessment [Sections 153A to 153D]
280.	Notice Under Section 143(2) While Making Assessment Under Section 153A
	*Contentious and Theoretical Issues*
	Requirement as to issuance of notice [Clause (a) of section 153A]
	Issuance of notice beyond sixth assessment year in certain cases
	Service of notice
	Number of notices required to be issued
	Assessment or reassessment of income [Clause (b) of section 153A]
	Abatement of pending assessment and reassessment proceedings
	Central Government empowered to specify class of search cases where notice not required to be issued for past six years
	Revival of abated assessment or reassessment proceedings where proceedings or order under section 153A(1) annulled
	Time limit for completion of assessment in search cases under section 153A
	Authorisation when shall be deemed to have been executed
	Applicability of provisions in cases prior to 1-6-2016
	Exclusions in computing the period of limitation
	Applicability of other provisions of the Act
	Tax chargeable on assessment or reassessment
	Return filed under section 153A to be deemed as return filed under section 139
	Requirement as to issuance of notice under section 143(2)
	Time limit for issuance of notice under section 143(2)
	Invalid approval obtained under section 153D
	Opportunity of hearing
	Adjournment of hearing
	Duty of assessing officer to consider all evidence produced
	Scope of assessment under section 153A
	Scope of section 153A in case of completed assessment
	Order passed on a non-existing entity not valid
	No addition if assessee discharged burden to prove
	No addition in the absence of any incriminating material
	Assessment under section 153A only for the benefit of revenue
	Validity of assessment under section 153A on the basis of warrant of authorisation issued in joint name
	Notice where issued under section 153C instead of section 153A
	Validity of assessment where searched premises neither occupied nor possessed by assessee
	Order of assessment or reassessment in search cases cannot be made by assessing officer below the rank of Joint Commissioner except with prior approval of Joint Commissioner
	Maintainability of writ
	*Practial Solutions*
	Purpose of notice
	Form and contents of notice
	Action to be taken on receipt of notice
	Failure consequences
281.	Addition Towards Alleged On-Money Paid/Received on Purchase/Sale of Properties
	*Appropriate Reply*
282.	Handling Notice Under Section 153A(1)(a) Where Books Not Maintained
	*Appropriate Reply*
283.	Explaining Jewellery and Cash Found During Search
	*Appropriate Reply*
284.	Challenging Action Under Section 153A Where Search Conducted in Rented Premises
	*Appropriate Reply*
285.	Challenging Action Under Section 153A on Company Where Search Conducted on Branch Manager's Premises
	*Appropriate Reply*
286.	Handling Notice as to Best Judgment Assessment in Relation to Search Cases
	Circumstances justifying best judgment assessment
	Procedure for making best judgment assessment
	Opportunity of hearing to be given
	Determination of income and tax
	Assessment under section 153A vis-a-vis original assessment
287.	Handling Notice Under Section 153C on Basis of Search on Other Assessee
	*Contentious and Theoretical Issues*
	Assessment of income of any other person
	Procedure to make assessment under section 153C(1)
	Date of initiation of search
	Central Government empowered to notify class of cases where notice not required to be issued for past six years in case of search of other person
	Issuance of notice under section 153C mandatory
	Assessment to be made in case of other person irrespective of filing of return by him
	Conditions for invoking section 153C
	Satisfaction of assessing officer--Scope of
	Satisfaction to be arrived at before invoking section 153C
	Documents belonging to the assessee vis-a-vis pertaining to the assessee
	Recording of satisfaction
	Assessment under section 153C cannot be made where papers found during search did not belong to the assessee
	Time-limit for issuance of notice
	Same assessing officer having jurisdiction over third person
	*Practical Solutions*
	Issuance of notice under section 153C
	Notice to whom
	Contents of notice
	Action to be taken by assessee on receipt of notice
288.	Letter Challenging Action Under Section 153C
	*Appropriate Reply*
	Section XXXVIII--Rectification and Notice of Demand [Sections 154 to 156]
289.	Handling Reply to Notice/Filing of Application for Rectification Under Section 154
	*Contentious and Theoretical Issues*
	Orders that can be rectified
	Faceless rectification
	Who can seek rectification of mistake apparent from the record
	Competent authorities to rectify a mistake apparent from records
	Rectification of an order subject to appeal
	Rectification either suo motu or on being brought to notice
	Opportunity of hearing when necessary
	Refund to be granted
	Notice of demand in certain cases
	Mistake apparent from record--Meaning of
	Mistake may be either of fact or of law
	Time limit for rectification
	Period of limitation to start from date of order sought to be amended
	Period of limitation for second rectification
	Commissioner not passing rectification order within the specified time limit--Whether application can be rejected on the ground of limitation provided in section 154(8)?
	Rectification of order where certain amendment operative from a particular date
	Rectificability of notice of demand under section 156
	Benefit not claimed can be claimed under section 154
	Status of the assessee cannot be changed in rectification
	Meaning of record
	Records of other years are also part of record
	Mistake should be discovered only from assessee's record
	Mistake apparent from the record of firm is not a mistake apparent from the records of individual partners
	Supplementary partnership deed forms part of record for the purposes of section 154
	Mistake apparent from record--Meaning
	Mistake apparent on record to be obvious and patent mistake
	If, on the basis of material on record, the assessee is entitled to relief, then it would constitute mistake apparent from record
	View favourable to assessee to be taken
	Rectification necessary where only one interpretation possible
	Failure to discharge statutory duties or wrong application of statutory provisions
	Assessee's entitlement to claim relief in rectification proceedings
	Mistake discovered on interpretation of provisions of Act
	Effect of decision by the Supreme Court
	Rectification on the basis of subsequent Supreme Court judgment--Whether justified
	Rectification proceedings can be initiated on the basis of jurisdictional High Court decision or Supreme Court's decision
	Judgment of jurisdictional High Court rendered after order of rectification cannot be a basis to carry out rectification
	Order based on a decision subsequently reversed
	Power of rectification is mandatory
	Limits on the power/rights
	Rectification at the behest of superior authority not possible
	Finding of superior authority may form basis for rectification
	Higher authorities not empowered to give decision on application for rectification pending before the assessing officer
	Successor authority's power to rectify
	Scope of power of rectification
	Notice necessary only when assessment enhanced or refund reduced
	Form and contents of notice
	Opportunity of being heard
	Expression 'the sum payable' means only the 'extra enhanced sum payable'
	Instances of mistake apparent from record
	Assessment of HUF as working partner in firm--Not a mistake apparent from record
	Assessee making new claim in rectification application
	Interest under section 220(2) cannot be charged in rectification proceedings
	Applicability of doctrine of merger
	Merger attracted only to matters considered and decided in the appellate order and other part of the assessment order remains open for rectification under section 154
	Merger attracted only to matters considered and decided in the appellate order and other part of the assessment order remains open for rectification under section 154
	No notice under section 148 where notice under section 154 not maintainable
	Validity of order passed after limitation period
	Allowing of TDS credit--TDS certificates filed at the time of rectification
	Assessee failing to avail of deduction, he was entitled to--Constitutes mistake apparent from record
	Assessing officer failing to apply provisions in respect of set-off of business losses--Whether mistake apparent
	Mistake crept in return due to fault in uploading software--Constitutes mistake apparent from record
	Disallowing NPA provisions under section 154 proceedings--Validity of
	Enhancement of income in rectification proceedings--Without allowing opportunity to assessee--Validity
	Rectification after expiry of limitation--Validity
	Assessment of HUF as working partner--Whether constitute mistake apparent from record
	Where assessee's appeal pending before Commissioner (Appeals)
	Mistake apparent--Order passed by assessing officer after scrutiny under sec. 143(3)
	Mistake apparent--Disallowance of LTA on due basis
	Computation of limitation period for rectification
	Departmental circulars
	*Practical Solutions*
	Issuance of notice under section 154(3)
290.	Submission of Online Rectification Application
	Pre-requisites for submitting online rectification application
	Step by step process to file online rectification application portal
291.	Application Under Section 155(1A) for Modification of Assessment Vis-a-Vis Remuneration Received from Firm
	Modification of assessment vis-a-vis remuneration received from the firm
	Application under section 155(1A)
	Action to be taken on receipt of notice
	*Practical Solution*
292.	Response to Notice Under Section 155(2) for Modification of Assessment of Member of AOP/BOI
	*Theoretical Issues*
	Modification of assessment of member of an assessing officerP/BOI [Section 155(2)]
	*Practical Solution*
	Notice under section 155(2)
	Action to be taken on receipt of notice
293.	Dealing with Notice Under Section 155(4) for Modification on Recomputation of Loss or Depreciation
	*Theoretical Issues*
	Modification in consequence of recomputation of loss or depreciation [S. 155(4)]
	Why notice
	*Practical Solution*
	Action to be taken on receipt of notice
294.	Application Under Section 155(11) for Recomputation of Capital Gains Arising on Transfer of Asset by Way of Compulsory Acquisition
	*Theoretical Issues*
	Exemption of capital gains arising on transfer of an asset by way of compulsory acquisition [Section 155(11)]
	*Practical Solution*
	Application under section 155(11)
295.	Application for Amendment of Assessment Order in Certain Cases of Computation of Capital Gain [Section 155(15)]
	*Theoretical Issues*
	Amendment of assessment order in certain cases of computation of capital gain where value adopted for stamp duty purposes has been taken as basis for determining capital gains
	Application under section 155(15)
	*Practical Solutions*
	Time limit for application
296.	Application for Recomputation Reduction in Compensation [Section 155(16)]
	*Theoretical Issues*
	Reduction in amount of compensation on compulsory acquisition
	*Practical Solutions*
	Application under section 155(16)
	Time-limit for making the application
297.	Response to Notice of Demand Under Section 156 Read With Section 282
	*Contentious, Theoretical and Procedural Issues*
	Scheme of section 156
	Precaution regarding uploading of wrong or fictitious demand
	Service of notice of demand
	Faceless notice of demand
	Notices and other documents to be treated as authenticated if name and office of a designated authority is printed, stamped, etc. on it
	Notice under the Act shall be deemed to be a validly served notice where the assessee took part in proceedings
	Notice to different entities
	Rectification of notice
	Importance of demand notice
	Assessment order shall precede the issue of demand notice
	Issuance of second notice of demand
	Demand to be revised pursuant to appellate order
	Notice of demand on whom to be served--Judicial view
	Period of limitation
	Notice in case of death of assessee
	Onus to prove service of demand notice
	Stay of demand--Deposit of 50% of tax demand
	Notice of demand under section 156--Payment of tax and interest--Pendency of proceedings before Commissioner (Appeals)/Tribunal
	Service necessary
	Service of notice to be in reasonable time
	Valid notice should be served
	No default unless notice of demand served
	Demand issued on basis of wrongly applied provision
	Demand notice issued on the basis of void assessment
	Demand relating to issue decided in appeal in assessee's favour
	*Practical Solutions*
	Issuance of notice under section 156
	Section XXXIX--Dealing with Intimation of Loss and Repetitive Appeals [Sections 157 and 158A]
298.	Intimation of Loss Under Section 157
	*Theoretical Issues*
	Intimation of loss
	To carry forward, establishment of loss is necessary
	Validity of assessment where assessing officer failed to determine the loss
	Intimation under section 157
	Faceless intimation of loss
	*Practical Solutions*
299.	Notice Under Section 158A in Relation to Provision for Avoiding Repetitive Appeals
	*Contentious and Theoretical Issues*
	Scheme of section 158A
	Form of declaration
	Report from assessing officer
	Admission or rejection of claim
	Amendment in the order passed under section 158A(1)(a)
	Avoidance of repetitive appeals--How application under section 158A is to be proceeded with?
	No immunity from payment of tax due
	*Practical Solutions*
	Issuance of notice under section 158A(3)(ii)
	Form and contents of notice
	Action to be taken on receipt of notice
	Failure consequences
	Issuance of notice under section 158A(5)
	Purpose of notice
	Form and contents of notice
	Section XL--Legal Representatives and Representative Assessees Related Proceedings
300.	Handling Notice Under Section 159 to Legal Representative
	*Contentious and Theoretical Issues*
	Legal representative liable to pay tax or any other sum payable by a person who dies
	Meaning of legal representative
	Assessment where a person dies in the middle of a financial year
	Procedure for making an assessment of income of deceased
	Legal representative deemed to be an assessee
	On the basis of what document, the legal representative becomes entitled to act as such
	Where an individual dies after filing of his return of income but before completion of assessment
	Legal representative rendered personally liable
	Extent of liability of a legal representative
	How long can the proceedings be continued in the hands of the legal representative
	A person dies executing a will appointing one or more executors or dies intestate leaving behind him more than one heir
	Where during the course of the assessment assessee died
	Validity of assessment order passed without bringing legal representative on record
	Consequences if the assessment proceedings were not in the name of legal representative
	Validity of assessment order passed in the name of deceased
	Assessment order passed in the name of one of the legal representatives, without notice to all other legal representatives
	Retraction of admission made by an assessee by his legal representative
	Capital loss pertaining to deceased be set off against the capital gains assessable in the hands of the legal representative
	Set off of refund due to legal representative in his individual capacity, against tax dues of his deceased father
	Leviability of penalty on legal representative under section 271(1)(c)
	Prosecution of legal representative for offence committed by deceased
	Abatement of appeal where assessee dies during pendency of appeal
	Notice of assessment should be in the name of legal representative
	Words 'legal representative' mean all the legal representatives collectively
	Order passed on one legal representative is binding on all other legal representatives
	Assessment without issuing notice to legal representative
	Issue of another notice to legal representative not required where proceeding validly initiated on assessee before death
	Assessment made without notice to legal representative, not to be annulled but may be set aside
	Proceeding to be against all legal representatives
	Assessee, where died during pendency of appeal
	Service of notice to each of several legal representatives
	Assessment on estate of deceased is null and void where estate not fully represented
	Section 159 applies to assessment of income of deceased only up to date of his death
	Legal representative can file suit for recovery of tax paid by him by mistake
	Amount of a deceased, received in respect of work done by him prior to death, not includible as his income
	Liability of legal representative for income that had not accrued to the deceased till his death
	Where a person does not derive any property from the estate of the deceased
	Tax of a period subsequent to death of assessee, cannot be recovered by issuing reassessment notice
	Assessee died during pendency of appeal--Levy of concealment penalty
	Assessee died during pendency of proceedings--Proceedings starated when assessee was alive
	Assessment made in deceased name
	Notice on deed person is invalid
	Assessment order in name of a dead person--Continuation of proceedings against dead person in name of legal representative
	Declaration of deceased assessee's all properties to be devolved in Trust
	*Practical Solutions*
	Issuance of notice under section 159(1)
	Action to be taken on receipt of notice
	Failure consequences
	Issuance of notice under section 159(2)
	Service of notice on all legal representatives--Whether necessary
	Action to be taken on receipt of notice
301.	Application Under Section 160 Regarding Nature and Purpose of Trust
	Deemed declared trust
	*Practical Solutions*
	Application under section 160
	Time limit
302.	Handling Notice Under Section 163 for Treatment as Agent of Non-Resident
	*Theoretical Issues*
	Agent in relation to a non-resident
	Assessing officer to choose who is to be treated as agent of non-resident
	Real and intimate relations required
	Real receipt of profits by agent not necessary
	Appointment of the most appropriate person as agent
	Appointment with reference to particular income to be assessed
	Proposed agent must be given a notice and an opportunity of being heard
	Particular year for which assessee to be treated as agent not mentioned in notice--Notice not illegal
	Order must be in writing
	Separate appointment for each assessment year
	Framing of assessment order without passing order under section 163(2) on agent of non-resident--Not justified
	No separate notice for reassessment
	Agent liable for tax as income under all heads
	Agent's liability--Scope of
	Single assessment in respect of several non-residents
	Both agent and principal liable to tax
	Appointment can be made before the end of previous year
	Notice for reassessment prior to appointment as agent, is of no effect
	Period of limitation for assessment/re-assessment on a representative assessee
	Indian company purchasing shares of another Indian company from a non-resident--Whether can be treated as agent of non-resident?
	Assessment made on power of attorney holder without first passing order under section 163--Not justified
	Assessment as representative capacity of assessee one day earlier than assessment of non-resident company
	Taking person as agent of non-resident--No opportunity of being heard
	*Practical Solutions*
	Issuance of notice under section 163(2)
	Action to be taken on receipt of notice
	Remedial measures
	Section XLI--Executors and Succession of Business [Sections 168 and 170]
303.	Handling Notice Under Section 168 to Complete Assessment of Executor
	*Contentious and Theoretical Issues*
	Meaning of executor
	Assessment in the hands of executor under section 168
	Chargeability of income of estate of deceased person
	Residential status of an executor
	Assessment of executor
	Assessment of executor mandatory
	Treatment of income of the estate which is distributed or applied to the benefit of any specific legatee
	Executor entitled to recover tax paid or payable by him in the capacity of an executor
	Appeal by executors of deceased assessee
	Executor claiming deduction towards probate duty or other expenses made by him under the will of deceased
	Difference between section 168 and section 176(4)
	Persons appointing different executors
	Meaning of executor
	Assessment in the hands of executor
	Provisions of section 168
	Assessment of executor
	Notice of assessment
	Set off of carried forward losses
	Exclusion of certain income
	Section 159 versus section 168
	*Practical Solution*
	Issuance of notice under section 168
	Action to be taken on receipt of notice
304.	Handling Notice Under Section 170 to Successor for Recovery of Tax Dues of Predecessor
	*Contentious and Theoretical Issues*
	Meaning of "succession to business"
	Assessment of successor
	Recovery of tax due on predecessor from successor
	Right of successor to recover from predecessor any sum paid by him
	Expression "cannot be recovered from him"
	Merger of assessee company with other company--Validity of assessment
	Order under section 170(3) need to be passed by revenue
	Assessment of income in case of succession to business, otherwise than on death
	Assessment of income where predecessor is not found
	Tax liability of predecessor be recovered from successor
	Taxation of income of any business or profession carried on by a Hindu Undivided Family
	*Practical Solution*
	Issuance of notice under section 170(3)
	Action to be taken on receipt of notice
	Section XLII--Hindu Undivided Families [Section 171]
305.	Response to Notice Under Section 171 Questioning Partition of HUF
	*Theoretical Issues*
	Nature of the provisions of section 171
	Partition--Meaning
	Partition under income tax law--As judicially explained
	Partition in order to be recognised as such should be as per Income Tax Act and not as per the Hindu Law
	Recording of a finding that partition had taken place, is a must
	Applicability of Income Tax Act in case of deemed partition under section 6 of Hindu Succession Act
	Claim of partition when to be made and by whom to be made
	Claim for partition can be made in reassessment proceedings as well
	Inquiry by assessing officer after claim of partition
	Enquiry by assessing officer under section 171
	Effect of recording order under section 171(3) for total partition
	Consequences of not passing of an order under section 171 or not enquiring about it
	Assessee never assessed as HUF post partial partition on 30-4-1978--Whether can be assessed as HUF
	Severance of status under Hindu Law is not partition for the purposes of section 171
	No partition can be said to have taken place where there was not made physical division of property by metes and bounds
	Claim of partition, when to be made and by whom to be made
	Inquiry by assessing officer after claim of partition
	Scope of inquiry under section 171 and its compliance
	Effect of recording order under section 171(3) for total partition
	Consequences of not passing of an order under section 171(3) or not enquiring about it
	Order under section 171(3) cannot be ignored in reassessment proceeding
	Not necessary that each member should be allotted a definite share
	*Practical Solutions*
	Issuance of notice under section 171(2)
	Action to be taken on receipt of notice
306.	HUF Related Deeds and Drafts
	Draft of Declaration Expressing Intention of Blending
	Sample Gift Deed in Case of Gift to HUF
	Sample Gift Deed by HUF to Individual
	Deed of Family Arrangement
	Draft Declaration of Reunion
	Simple Partition Deed
	Sample Partial Partition Deed Qua Persons
	Sample Partial Partition Deed Qua Properties
	Release Deed in Case of Separation of One Member of the Hindu Undivided Family
	Reference to Arbitration by Members of HUF in Respect of their Partition of the Family
	Section XLIII--Some Particular Tax Entities [Sections 172, 174 and 174A]
307.	Non-Residents Engaged in Shipping Business--Notice and Application Under Section 172
	*Theoretical Issues*
	Scheme of levy and recovery of tax in case of shipping business of non-residents
	Section 172 applicable even if non-resident has a statutory agent in India
	Section 90 will have overriding effect over section 172
	Treaty when not applicable
	Section 172 vis-a-vis section 44B
	Applicability of section 172
	Shipping business of non-residents--Vessel not owned or chartered by assessee
	Recipient liable to pay tax as per section 172(1)--Liability of assessee
	Applicability of article 24 of India-Singapore Tax Treaty
	Taxability of freight charges
	Applicability of sections 194C and 195
	Power of assessing officer to call for records
	Time limit for completion of assessments in case return is filed under section 172
	No port clearance certificate till satisfaction of assessable tax duly paid
	Option to assessee to be assessed under section 143(3)
	*Practical Solutions*
	Issuance of notice under section 172
	Application for exercising option provided under section 172(7)
308.	Handling Notice Under Section 174 by Persons Leaving India
	*Theoretical Issues*
	Assessment of persons leaving India
	Tax clearance certificate--Enough proof
	Issuance of notice under section 174(4)
	Notice to whom?
	Contents of notice
	Action to be taken on receipt of notice
	Time limit for making the return
	Manner of filing return
	*Practical Solution*
309.	AOP Likely to be Dissolved--Handling Notice Under Section 174A
	*Contentious and Theoretical Issues*
	Applicability of section 174A
	Assessment in the current year
	Applicability of provisions of section 174
	Judicial rulings rendered ineffective because of section 174A
	Notice under section 174A
	Notice to whom?
	Contents of notice
	Action to be taken on receipt of notice
	Time limit for making the return
	*Practical Solution*
	Manner of filing return
	Section XLIV--Handling Certain Special Situations [Sections 175 to 179]
310.	Handling Notice Under Section 175 to Complete Accelerated Assessment of Persons Likely to Transfer Property to Avoid Tax
	*Theoretical Issues*
	Assessment of persons likely to transfer property to avoid tax
	Issuance of notice under section 175
	Notice to whom?
	Contents of notice
	Action to be taken on receipt of notice
	Time limit for making the return
	*Practical Solution*
	Manner of Filing Return
311.	Handling Notice Under Section 176 Pursuant to Discontinuance of Business
	*Theoretical Issues*
	Income which is chargeable under section 176(1)
	Rate of tax
	Receipts after discontinuance
	Meaning of discontinuance of business profession
	Discontinuance of business--Connotation of
	Discontinuance of profession
	Assessment on entire income
	Deductibility of expenses
	Applicability of section 176(3A) to money received in name of dissolved firm
	*Practical Solutions*
	Issuance of notice under section 176(3)
	Failure consequence
	Issuance of notice under section 176(5)
312.	Handling Notice Under Section 178 by Liquidator Vis-a-Vis His Appointment
	*Theoretical Issues*
	Notice of appointment by liquidator
	Copy of resolution of winding up whether to be enclosed
	Time limit for giving notice
	Time limit to run from date of assuming charge
	Amount of tax to be notified by the assessing officer
	Liquidator not to sell any assets
	Exception to above rule [Proviso to sub-section (3)]
	Personal liability of liquidator
	Payment of advance tax
	Income must accrue before winding up
	Payment of tax demand otherwise than as prescribed in Companies Act
	*Practical Solution*
313.	Handling Notice to Director of Private Company Under Section 179
	*Contentious and Theoretical Issues*
	Liability of director under section 179(1)
	Director liable for interest under section 220(2)
	Director's failure to prove non-negligence, guilty of misfeasance, etc.
	Notice of demand served, however opportunity of being heard not given
	Recovery effectuated without issue of notice under section 156
	Director having resigned before action under section 179
	Clear finding that tax could not be recovered from company is necessary precondition for applicability of section 179
	Recovery of interest and penalty from director arising out of assessment order passed against company
	Where assessee was a director of public limited company, section 179 was not applicable to him
	Where non-recovery of tax dues from company was not attributable to director's gross negligence, misfeasance or breach of duty, section 179 could not be invoked against directors of private company
	Non-recovery of tax dues where not attributable to director's gross negligence, misfeasance or breach of duty
	Where orders directing directors to pay tax dues from company did not refer to any of the proceedings initiated against the company, section 179 could not be invoked against the director
	Joint and several liability
	Situation when private company is converted into public company
	Assessee director of a public limited company--Revenue asking assessee to prove company was a public limited company
	Directors liability under section 179--Reasonable opportunity of being heard
	Liability in special cases--Director's liability under section 179--Non- service of notice before freezing bank accounts of director
	*Practical Solution*
	Issuance of notice under section 179
	Section XLV--Dealing with Assessment of Firms [Sections 185 to 188A]
314.	Handling Notice Under Section 185 Before Assessment of Firm
	*Contentious and Theoretical Issues*
	Basic requirements for assessments as partnership firm
	Relevance of instrument of partnership
	Necessity of instrument even though a firm can exist without instrument
	Basic contents of an instrument of partnership
	Instrument need not be in specific form
	Effective date of instrument
	Later execution of instrument of partnership
	Signature of partners on deed
	Signature of Karta of HUF in dual capacity
	Defect of stamp paper--Purchase of stamp paper on a later date than execution, etc.
	Non-specification of all businesses in the deed
	Specification of shares to be clear and precise
	Only share in profits and not in losses provided for
	Certification of copy of deed--Need of
	Filing of certified copy, whether substantive or procedural requirement
	Certified copy need not be continued to be filed year to year
	Delayed filing of return, however, alongwith the desired certified copy of the deed
	Certification in the eventuality of death of a partner
	Certification in the case of dissolved firm
	Certification in the eventuality of retirement
	Xerox copy of the original deed, whether can be certified?
	Date of certification not put by signing partners
	Date of certification of partnership deed
	Partner retiring and leaving India--Affidavit from remaining partners, whether sufficient compliance
	No necessity of furnishing copy with revised return
	Second copy of the partnership deed, and not the original, filed but not certified
	Supplementary deed
	Effect of no change in constitution
	Changes in the terms of deed other than as regards constitution and as regards sharing of income occurring in second year--Requirement of filing copy and paying stamp duty
	Change in the interest and remuneration clauses only--Question of filing certified copy
	Certified copy, in case of change of constitution, not certified by retiring partners
	Fresh partnership deed to be executed on induction of a new partner
	Consequences of not complying with requirements of section 185
	Photocopy of partnership deed furnished instead of original copy--Allowability of remuneration to partners
	*Practical Solution*
	Issuance of notice under section 185
315.	Handling Notice Under Section 187 Questioning Why Assessment of Firm shall Not be Made on Changed Constitution
	*Contentious and Theoretical Issues*
	Assessment of a firm to be made as constituted at the time of making of assessment
	What is change in constitution
	Death of partner--Not a change of Constitution
	Relevant provisions of the Partnership Act
	Single assessment in case of change in constitution
	Section 187(1) applicable even in reassessment proceedings
	Change of constitution after close of the relevant previous year
	Section 187(2)--When comes into play
	Change in the constitution involves every alteration
	Induction of a new partner is change in constitution
	Karta of HUF who was partner in representative capacity continuing as partner in his individual capacity with changed share
	Mere change of name does not amount to change of constitution
	Proviso to section 187(2) does not provide for automatic dissolution on death
	Firm with only two partners
	Two firms having same partners with identical shares
	Proviso to section 187(2) not applicable where deed stipulates no dissolution consequent upon death of one of the partners
	Two assessments need be made where there is no provision in the partnership deed that firm would not be dissolved on death of one of partner
	*Practical Solution*
	Issuance of notice under section 187
316.	Notice Seeking to Make Single Assessment in Case of Identical Firms
	*Contentious and Theoretical Issues*
	'Firm', 'Partner' and Partnership--Meaning and scope
	Principles as to clubbing of income of two or more firms laid down by the Andhra High Court and approved by the Apex Court
	Clubbing of income of two firms need not necessarily be made
	Clubbing to be made if there is interlacing and interlocking of finance management and business of both the firms
	Apex Court's view in K. Kelukutty's case (1985) 155 ITR 158 (SC)--Intention of the partners to be looked into
	*Practical Solutions*
	Issuance of notice under section 143(2)
317.	Notice Seeking to Make Two Assessments Where One of the Partners Died
	*Contentious and Theoretical Issues*
	Death of one of the partners
	Change in constitution of firm--Provisions as to assessment
	Death of partner--Not a change of constitution
	Proviso to section 187(2) not applicable where deed stipulates no dissolution consequent upon death of one of the partners
	Two assessments for the two broken periods
	When partners reconstituted a new firm
	Proviso to section 187(2) does not provide for automatic dissolution on death
	Proviso to section 187(2) does not mean that only dissolution by death is recognised
	Death of a partner--Number of assessments
	Relevant provisions of the Partnership Act
	Judicial view where there is no clause in the deed
	Where business continued by remaining partners
	Firm consisting two partners only necessary to be dissolved
	Death of partner--Case not falling under exception
	Apex Court's view
	*Practical Solution*
	Notice under section 143(2) seeking to make two assessments of the firm
318.	Notice for Recovery of Tax Dues of Firm from Partners Thereof
	*Contentious and Theoretical Issues*
	Liability of partners towards tax dues of the firm
	How can one proceed with recovery from partnership firm
	Tax cannot be recovered from partners where certificate indicates firm as defaulter
	Payment of tax assessed on partner individually--Another partner not ordinarily liable
	Tax liabilty of retired partner, whether can be adjusted against refund due to firm
	*Practical Solution*
	Issuance of notice under section 188A
	Section XLVI--Firm/LLP Related Deeds and Drafts
319.	Drafting of Partnership Firm Related Deed
320.	Proper Drafting Vis-a-Vis Size of Firm
	Availability of larger amount of remuneration in aggregate to working partners
	Restriction of size of partnership firm, how may be achieved?
	Instances of advantageous size planning
321.	Remuneration Planning Through Proper Drafting of Clauses of Partnership Deed
	Firm with reasonable profits every year and expecting marginally higher profits in future
	Professional firm
	Firm having nominal profits with no sharp variation in coming years
	Partnership with minors and lady partners with three male working partners and having normal profits
322.	Drafting in Respect of Firm Not Expecting Profits During Three to Four Years
323.	Draft Agreement between Partners and Date from Which Partnership Commences
324.	Sample Deeds
	Simple Partnership Deed
	Supplementary Deed of Partnership
	Admittance of Partner by Sole Proprietor
	Deed for Partnership With Fixed Capital
	Deed for Admittance of Minor to Benefits of Partnership
	Draft of Partnership Admitting More Than One Minors to Benefit of Partnership
	Partnership with Minors and Lady Partners with Three Male Working Partners and Having Normal Profits
	Deed for Partnership with a Trust
	Draft for Admitting Limited Company as Partner with Idea to Convert Business of Partnership Into Limited Company
	Deed of Firm Entering into Partnership With Another Firm
	Draft Deed of Partnership for Being Partner in Another Firm
	Draft for Admitting Working Partner Only for Sharing Profit and Losses with Guarantee of Fixed Amount of Profit to Working Partner
	Draft for Contribution of Capital Assets by the Partners as Capital
	Draft for Agreement for Sub-Partnership
	Draft for Partnership Deed in Reconstitution of the Firm After Death of a Partner
	Draft Notice by Partner Demanding Production of Books of Accounts
	Comprehensive Retirement Deed
	Draft for Retirement of Partner and Taking his Son in Place of Retiring Partner
	Comprehensive Dissolution Deed
	Deed of Dissolution of Partnership Involving Immovable Properties Contributed by One Partner as Contribution to Capital and on Dissolution Returning Same to Him
	Dissolution Deed with Restrictions Against Using Goodwill Of Dissolved Firm
325.	Sample LLP Agreements
	*I. Sample LLP Agreement*
	Section XLVII--TDS TCS Related Proceedings [Sections 190 to 206C]
326.	Furnishing TDS Related Obligations
327.	Submission of Particulars of Income Under Section 192(2)
	TDS from salary
	Computation of tax deductible where employee is working under more than one employer
	Form for furnishing information
	Procedure for computing TDS under section 192(2)
	Furnishing of Form No. 12B whether mandatory
	Latest annual circular on TDS from salary
328.	Declaration of Salary by Employee for Purposes of Section 192
	Need for declaration of salary by employee
	Declaration where employee is working under more than one employer
	Declaration where employee is having income from sources other than salary income
	Relief when salary paid in arrear or advance
	Particulars required by employer to compute salary income of employee
	Clarification Regarding Short Deduction of TDS/TCS due to Increase in Rates of Surcharge by Finance (No. 2) Act, 2019
	Extent of reliance to be placed by the employer in respect of investment made by the employee
	Employer not liable where deduction made on the basis of honest estimate of salary
	Specimen format of declaration by employee
329.	Filing Details of Perquisites and Profits in Lieu of Salary
	Person responsible for paying salaries required to file details of perquisites and profits in lieu of salary
	Consequences of failure in giving details of perquisites and profits in lieu of salary
	Statement showing particulars of perquisites, other fringe benefits or amenities and profits in lieu of salary with value thereof
330.	Guidelines for Purpose of Section 194-O(4)
	Applicability on transactions carried through various Exchanges
	Applicability on payment gateway
	Applicability on insurance agent or insurance aggregator
	Calculation of threshold for the financial year 2020-21
331.	Application Under Section 195(2) for Determination of Sum Chargeable
	TDS from payment to non-residents
	Deduction of tax on proportionate amount under section 195(2)
	Online filing of application in prescribed form with effect from 1-11-2019
	Section 195(2) is not for proportionate tax rate
	Availability of foreign tax credit
	Assessing officer to determine the appropriate proportion of the sum chargeable to tax as mentioned in section 195(1) in respect of which deductor shall be deemed to be as assessee-in-default--Clarification via Instruction No. 2/2014, dt. 26-2-2014
	Form for application to assessing officer
	No time limit for application under section 195(2)
	Effect of non-filing of application under section 195(2)
	NoC required under section 195(2) where not procured with respect to payment to non-resident
	Principle of estoppel vis-a-vis non-disposable of application under section 195(2)
	Justification of non-disposal of application under section 195(2)
	*Filing of Application*
	Purpose of application to assessing officer under section 195(2)
	Time limit for application
	Form for application
332.	Application for Certificate Under Section 195(3)
	No deduction of tax at source at the application of recipient [Section 195(3) and section 195(4)]
	Person eligible to avail facility of section 195(3)
	*Filing of Applications*
	Application under section 195(3) by a banking company
	Application under section 195(3) by any other person
333.	Handling Notice Under Section 195(4) for Cancellation of Certificate
	Issue of notice under section 195(4)
	Form and contents of notice
	Action to be taken on receipt of notice
	Failure consequences
334.	Procedure for Refund of TDS Under Section 195 as per CBDT Guidelines
	Circular providing procedure for refund of tax deduction under section 195
	Circumstances when refund becomes due
	Clarification via Circular No. 7/2011, dt. 27-9-2011
	Clarification via Circular No. 11/2016, dt. 26-4-2016
335.	Requirement of Undertaking and Chartered Accountant's Certificate
	Person responsible to deduct tax under section 195 required to furnish relevant information in prescribed manner
	Clarification regarding remittances to non-residents--Remittance of Consular receipts
	Rate of tax deduction where DTAA is in force
	*Practical Solutions*
336.	Application for Determination of Appropriate Sum Chargeable in Case of Payment by Notified Class of Persons or Cases
	CBDT empowered to notify class of persons required to make application to assessing officer for determination of appropriate proportion of sum chargeable in case of payment to non-resident
	Power of CBDT to notify class of persons or cases
	Section 195(7) vis-a-vis section 195(2)
	*Filing of Application*
	Person eligible to file application under section 195(7)
	Time limit for application
	Form of application
	Section XLVIII--Collateral Provisions as to TDS & TCS [Sections 197 to 206C]
337.	Application Under Section 197(1) Read With Rule 28AB
	Certificate of no deduction of tax in case of certain entities
	Conditions precedent for obtaining certificate
	Form of application
	Validity of certificate
	Satisfaction of the assessing officer
338.	Response to Notice and Applications Under Section 197
	Certificate of tax deduction at lower rate or no tax deduction [Section 197]
	Procedure to get certificate for purpose of section 197 [Rule 28 & 28AA]
	Administrative instruction as to issue of certificate of non-deduction at a lower rate
	Instructions for issue of certificate under section 197 mandatorily through ITD system
	Note for issue of certificate under section 197 mandatorily through the system
	Application for issue of certificate for deduction at lower rate--Not to be acted upon if submitted after credit/payment
	No TDS from receipts relating to corporations referred to in section 10(26BBB)
	No income-tax deduction from disability pension
	Certificate of no deduction of tax or deduction at lower rates from dividends
	No certificate can be issued after amounts subject to TDS stand credited or paid
	Effective date of certificate under section 197
	Cancellation of certificate
	Justification of denial of certificate under section 197(1)
	Reasons to be communicated to assessee
	Entertainment of application before commencement of financial year
	Powers of the Board
	Maintainability of writ against order under section 197
	Applications can be filed for the certificate before the start of Financial Year
	*Procedural Solutions*
	Procedure, Format and Standards for Filing an Application for Grant of Certificate for Deduction of Income Tax at any Lower Rate or no Deduction of Income Tax under section 197(1)/Collection of the Tax at any Lower Rate under section 206C(9) Through TRACES
	*Practical Solution*
	Notice under section 197(2) before cancellation of certificate
339.	Declaration Under Section 197A for Claiming Certain Receipts Without TDS
	Resident individual eligible to the benefit under section 197A(1)
	Any person except company or firm eligible to take benefit under section 197A(1A)
	Benefit of section 197A not available if income referred to in section 197A exceeds maximum amount not chargeable to tax
	Relief to senior citizens
	Relief in case of offshore banking units
	Relief in case of New Pension System (NPS)
	No deduction in case of notified institution, association or body or class thereof
	Obligation of person paying income without deduction of tax
	Declaration by person claiming receipt of certain incomes without deduction of tax
	Due date for filing Form Nos. 15G & 15H
	Declaration in respect of income receivable by minor
	Consequence of making payment without deduction of tax, where self-declaration not furnished
340.	Time and Manner for Deposit of TDS with Central Government
	*Theoretical Issues*
	Deposition of tax with Central Government
	TDS on behalf of Government
	Furnishing of statement for reporting of payment of TDS through book entry
	Time for deposit of TDS in case of deductors other than Government authorities
	Time for deposit of TDS where tax is deducted under section 194-IA
	Time for deposit of TDS where tax is deducted under section 194-IB
	Time for deposit of TDS where tax is deducted under section 194M
	Facility of quarterly payment in specific cases
	Mode of payment of TDS in case of deductors other than Government authorities
	Mode of payment where tax is deducted under section 194-IA or under section 194-IB or under section 194M
	Relief provided in deposit of TDS due to COVID-19
	Procedure of preparation and furnishing Form 24G at TIN-Facilitation Centres (TN-FCs)--Circular No. 20/2020, dt. 3-12-2020
	FAQs regarding furnishing of Monthly Form No. 24G Statements by Pay and Accounts Officers (PAOs)/District Treasury Officers (DTOs)/Cheque Drawing and Disbursing Officers(CDDOs)
341.	Downloading and Issuance of TDS Certificate
	*Theoretical Issues*
	Issuance of TDS certificate [Section 203]
	Form and periodicity of TDS certificate
	Contents of TDS certificate
	TDS certificate in case of tax deduction under section 194-IA or under section 194-IB or under section 194M
	Issuance of TDS certificate where assessee employed by more than one employer
	Issuance of duplicate certificate if original lost
	Form 16 may be authenticated by using digital signature
	Consequences of the default in the issue of TDS certificates
	Writ to compel issue of TDS certificate
	Issuance of certificate for tax deducted at source in Form No. 16 made on or after 1-4-2012 by generating and subsequently downloading through TRACES Portal--Circular No. 4/2013, dt. 17-4-2013
	*Procedural Aspects*
	Procedure, Format and Standards for Issuance of Certificate for Tax Deducted at Source in Part B of Form No. 16--Notification No. 09/2019, dt. 6-5-2019
	Procedure for generating Form 16A from TRACES
	Procedure as to check status of request for Form 16A
	Signature on TDS certificate
	Modification in Form 16A generated by TDS CPC
342.	Filing of Statement of TDS
	*Theoretical Issues*
	Requirement regarding quarterly statement of TDS
	Filing of correction statement
	Form of statement of deduction of tax
	Manner of furnishing statement
	Deductors who are compulsorily required to furnish statement electronically
	Furnishing of statement electronically, optional in case of other deductors
	Duty of deductor while preparing statement of tax deducted
	Furnishing of statement by person deducting tax under section 194-IA or 194-IB or section 194M
	Claiming of refund for excess TDS deposited
	TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased
	*Procedural Solutions*
	Electronic filing of returns of TDS
	Scheme for furnishing Paper Returns of TDS
	Deductors' manual
	Deductors' Manual Part II for correction in quarterly statements
	Furnishing of quarterly e-TDS statement by Deductors/Collectors
	Acceptance of e-TDS/TCS statements in Pen Drive
	Guidelines for reporting TDS transactions where amount paid to deductee has not exceeded the threshold limit in the first quarter but in subsequent quarters has exceeded threshold limit (as issued by the Directorate of Income Tax–Systems)
	Procedure of preparation of quarterly statement of deduction of tax under section 200(3) of the Act vide Circular No. 1/2019, dt. 1-1-2019
	Return of deduction of tax from contributions paid by trustees of approved superannuation fund [Rule 33]
	Form for claiming refund for excess TDS
	Form for verification of information in TDS/TCS statement
343.	Processing of Statements of TDS
	Processing of TDS statements
	Meaning of "an incorrect claim apparent from any information in the statement"
	CBDT empowered to make scheme for centralised processing of TDS statements
	Remedy against intimation after processing of TDS statement
	Processing of E-TDS Returns where tax is short deducted--Instruction No. 8/2010, dt. 8-12-2010
344.	Furnishing of Quarterly Returns Under Section 206A
	*Theoretical Issues*
	Quarterly return by banking company, co-operative society or housing finance company
	Quarterly return by any other person [Section 206A(2)]
	Power of CBDT and Central Government in respect of quarterly return
	Penalty for non-furnishing of quarterly return
	Quarterly return in respect of interest on time deposits without tax deduction at source
	*Practical Aspects*
	Enabling onling filing of statement with effect from 1-9-2019
345.	Credit for TDS
	*Contentious and Theoretical Issues*
	Credit to be given to person from whose income deduction was made
	Credit for tax deducted under section 192(1A)
	CBDT empowered to make rules
	Credit for TDS to be given to deductee on the basis of information given by deductor
	Allowability of credit to person other than tax deductee
	Assessment year for which credit for TDS and TCS to be given
	Credit for TDS to be subject to certain verifications
	Case Law Support
346.	Annual Statement of Tax Deducted or Collected
	*Theoretical Issues*
	Requirement as to issuance of statement of TDS by Department
	Procedure as to issuance of annual statement under section 203AA
	Annual information statement under section 285BB
	Issuance of annual information statement under section 285BB
	Uploading of other information
	Authority who is required to specify relevant procedure
	Requirement as to furnish annual statement of TCS
347.	Handling Notice Under Section 201 in Case of Failure to Deduct or Pay Tax
	*Contentious and Theoretical Issues*
	Assessee when treated as assessee in default
	Tax deductor not to be deemed to be an assessee in-default in certain cases
	Relief provided in first proviso extended in case of payment made to non-resident
	Relief regarding short deduction via Circular No. 8/2020, dt. 13-4-2020
	Interest under section 201(1A)
	Computation of interest where payee discharged his tax liability
	Statutory charge upon assets
	Time limit for passing of orders under section 201(1)
	Necessity as to issuance of notice before passing order under section 201(1)
	No interest under section 220(2) where interest is charged under section 201(1A) on the amount specified in the intimation under section 200A(1)
	Person, when not an assessee in default
	Levy of interest mandatory
	Order under section 201(1A) to be a speaking order
	Non-deduction of tax on income from winning of lottery in kind
	Adjustment of excess deposit of TDS made in earlier year
	No interest where tax could not be deducted due to non-identification of payee
	Validity of show-cause notice under section 201
	Wrong submission of PAN
	Time limit for initiating proceedings in case of payment to non-residents
	Employer when not deemed to be in default
	Waiver of interest charged under section 201(1A)(i)
	Validity of challenging order under section 201 through writ petition
	*Practical Solutions*
	Notice to be issued before invoking section 201
	Form and contents of notice
	Action to be taken on receipt of notice
	Failure consequences
	Form for funishing certificate of accountant under the first proviso to section 201(1)
348.	Application Under Section 203A for Allotment of TAN
	Scheme for obtaining Tax Deduction and Tax Collection Account Number
	Requirement of quoting Tax Deduction Tax Collection Account Number
	Application to whom
	Time limit for application
	Failure consequences
	Form of application
349.	Declaration Regarding Use of Goods Purchased for Certain Purpose [Section 206C(1A)]
	*Theoretical Issues*
	Statutory provision governing collection of tax at source
	Specified goods for the purpose of section 206C(1)
	Tax when to be collected in respect of goods specified in section 206C(1)
	Tax to be collected in case of grant of lease, licence, etc.
	TCS on jewellery, bullion, goods and services
	Tax to be collected at source on sale of motor vehicle of the value exceeding Rs. 10 lakh, either in cash or otherwise
	TCS on remittances through LRS and on sale of overseas tour package
	TCS by seller of goods other than those covered by section 206C(1), 206C(1F) and 206C(1G) and other than goods exported out of India
	Power to remove difficulties in implementation of sub-sections (1G) and (1H)
	Lower deduction in certain cases for a limited period
	Rates of collection of tax at source
	Octroi vis-a-vis toll
	Excavation of minor minerals
	Meaning of "seller"
	Meaning of "buyer"
	Constitutional validity of amendment with regard to the definition of the term 'buyer'
	Meaning of 'scrap'
	No tax required to be collected where scrap is utilised for manufacturing or processing of articles or things and not for trading purposes
	*Procedural Solutions*
	Copy of declaration to be submitted by seller to the prescribed authority
	Impact of delay in furnishing of declaration from buyers in Form 27C
	Form of declaration under section 206C(1A)
350.	Guidelines for Purpose of Section 206C(1H)
	*Theoretical Issues*
	Applicability on transactions carried through various Exchanges
	Calculation of threshold for the financial year 2020-21
	Applicability to sale of motor vehicle
	Adjustment for sale return, discount or indirect taxes
	Fuel supplied to non-resident airlines
351.	Application and Notice for Collection of Tax at Lower Rate
	*Theoretical Issues*
	Collection of tax at lower rate
	Application under section 206C(9)
	*Practical Solution*
	Notice under sub-section (10) of section 206C
352.	Time and Manner for Depositing TCS
	Time and manner for depositing TCS
353.	Filing of Statement of TCS
	Furnishing of statement of TCS
	Form of statement of collection of tax
	Time limit for furnishing statement
	Mode of furnishing statement
	Procedure for online submission of statement of collection of tax
	Consequences of failure to furnish statements within prescribed time
	Electronic Filing of Return of Tax Collection at Source
	Scheme for furnishing paper return for TCS
354.	TCS Certificate and Tax Credit
	Statutory provision relating to credit for TCS
	To whom credit is given
	Assessment year for which credit is given
	Basis for credit
	Credit to whom, where TCS certificates in different names carrying different PANs
	Issuance of annual statement of TCS
	Furnishing of TCS certificate
	Form of certificate
	Contents of certificate
	Time limit for issuance of TCS certificate
	Issuance of duplicate certificate if original lost
355.	Person Responsible for Collection of Tax, When Deemed to be Assessee in Default
	*Theoretical Issues*
	Person responsible for collection of tax, if fails to collect, shall be deemed to be assessee in default
	Person responsible to collect tax not to be deemed in default if buyer, licensee or lessee discharged their tax liability
	Limitation for passing order under section 206C
	No penalty if failure is due to good and sufficient reasons
	Appealability of order passed under section 206C(6A)
	*Practical Solution*
	Form for furnishing Chartered Accountants Certificate where collectee discharges tax liability
	Section XLIX--Conveyancing Aspect as to Advance Tax [Section 210]
356.	Response to Notice Under Section 210(3) Requiring Payment of Advance Tax
	*Theoretical Issues*
	Liability for payment of advance tax [Section 207]
	No advance tax payable by senior citizens in certain cases [Section 207(2)]
	Conditions for liability to pay advance tax [Section 208]
	Assessees required to pay advance tax
	Assessing officer empowered to raise demand for payment of advance tax against old assessee [Section 210(3)]
	Assessment on the basis of which notice issued under section 210 having been set aside--Effect of
	Effect of inaccuracy in notice of demand
	Effect of unsigned order on notice of demand
	Opportunity of hearing to assessee
	*Practical Solutions*
	Notice under section 210(3)
	Form of notice demanding advance tax
	Intimation under section 210(5)
	Form for intimation to assessing officer under section 210(5)
	Section L--Dealing with Assessee's Failure Situations [Sections 220 and 221]
357.	Drafting Application Under Section 220(2A) for Reduction/ Waiver of Interest
	*Theoretical Issues*
	Payment of tax demanded
	Faceless recovery
	Validity of demands raised under the Act
	Interest payable
	No interest to be charged under section 220(2) in certain cases
	Waiver or reduction of interest--Conditions precedent
	Not necessary that all three conditions should co-exist
	Even if three conditions are satisfied reduction/waiver depends on circumstances
	Pre condition for invoking section 220(2A) not satisfied--Effect of
	Question of opportunity of being heard before refusing to grant waiver reduction
	Order refusing to reduce interest without recording of reasons is not valid
	Cases, where rejection of application under section 220(2A) justified
	Rejection of claim under section 220(2A) without assigning reasons--Not valid
	*Practical Solution*
358.	Drafting Application Under Section 220(3) Seeking Payment of Tax in Instalments
	*Theoretical Issues*
	Tax payment in instalments
	Assessee when treated as assessee in default
	Application under section 220(3)
	Entitlement for the benefit of instalment(s) is subject to conditions attached with it
	*Practical Solution*
359.	Drafting Application Under Section 220(6) Seeking Stay of Demand
	*Contentious and Theoretical Issues*
	Stay of recovery proceedings
	Power under section 220(6) exercisable both against and in favour of the assessee
	Power under section 220(6) is coupled with duty
	Stay of proceeding under section 220(6)--Jurisdiction of Commissioner
	Assessing officer empowered to entertain assessee's prayer in respect of stay proceedings
	Discretion under section 220(6) to be exercised in proper manner--Word "may" in section 220(6) cannot be interpreted as "must"
	Circumstances where High Court can interfere under its writ jurisdiction
	Opportunity of hearing whether necessary
	Order passed under section 220(6) must be reasoned order
	Granting of stay may be subject to condition(s)
	Discretionary powers under section 220(6) to be exercised only in respect of disputed taxes
	Interest how to be computed
	Stay application in case of high pitched assessment
	Stay application to be filed within prescribed period
	Circumstances where assessing officer to exercise discretion to not to treat assessee as being in default in respect of amount specified in first appeal pending before Commissioner (Appeals)
	Mere filing of appeal or application for stay in appeal will not ipso facto entail grant of stay
	Stay of demand vis-a-vis pendency of appeal
	Direction to pay 20% of disputed demand and by granting stay for rest of the demand
	Assessing officer whether competent to impose a pre-condition of part deposit of demand
	CBDT's Guidelines as regards procedure for grant of stay
	Commissioner (Appeals) insisted upon payment of 20% of disputed tax amount
	Pre-deposit of 20%
	*Practical Solution*
360.	Handling Notice Under Section 221 Seeking to Levy Penalty on Assessee in Default
	*Contentious and Theoretical Issues*
	Penalty payable by assessee in default
	Necessity of providing opportunity of being heard
	Imposition of penalty is discretionary
	Show-cause notice or hearing opportunity to assessee essential
	Opportunity of hearing while granting time for payment of tax
	Penalty can be imposed only where proper demand notice served
	Notice should be to proper person
	Penalty not leviable where default is for good and sufficient reasons or there is reasonable cause
	Order of penalty bad where same does not specify amount imposed
	Time Limit for passing penalty under section 221(1)
	Opportunity of hearing
	Credit for advance tax essential before raising the demand for tax and levy of penalty
	Penalty cannot be imposed for non-payment of interest due under section 220(2)
	Penalty under section 221 cannot be imposed for default in payment of penalty
	Leviability of penalty during stay
	No immunity from penalty merely on ground of payment of taxes
	Refund cases of the assessee for earlier years pending--Assessing officer, whether justified to impose penalty for subsequent years demand?
	Huge amount of tax demand already deposited by assessee
	Time allowed to deposit demand not expired--Penalty not leviable
	*Practical Solutions*
	Notice under section 221
	Contents of the notice
	Action to be taken on receipt of notice
	Remedial measures
	Section LI--Dealing with Recovery of Tax [Sections 222, 223 and 226]
361.	Handling Notice for Recovery Under Section 222 or Section 223
	*Contentious and Theoretical Issues*
	Mode of recovery under section 222
	Property--Scope of
	"Assessee in default" is subject to recovery proceedings
	Petitioner, whether can be allowed to raise question of identification of property
	Furnishing of bank guarantee to lift the attachment
	Certificate issued against deceased assessee not valid
	Joint and several liability of partners--Scope in certificate proceedings
	Tax cannot be recovered from partner where certificate indicates firm as defaulter
	Recovery of tax, etc., in case where firm dissolved
	Where refunds of earlier years are due to assessee firm
	Recovery of tax arrears of reconstituted firm
	Tax liability of retired partner, whether can be adjusted against refund due to firm
	Certificate proceedings, whether can be continued against receiver
	Liability of association vis-a-vis of its members
	Service of notice vis-a-vis validity of certificate proceedings
	Recovery from HUF
	Joint and several liability of member(s) of HUF--When and how
	State has priority as between creditors of equal degree
	Who can take action under section 222
	Non-making of claim or objection before TRO--Impact of
	Stay of proceedings
	Tax Recovery Officer also grant stay
	Unconditional stay till disposal of appeal by Tribunal
	Suit challenging assessment during recovery proceedings not maintainable
	Non-compliance with condition of stay order--Effect of
	Ex parte ad interim stay--Jurisdiction of High Court
	*Practical Solution*
	Notice under section 222/223
	Form of notice
362.	Handling Notice Under Section 226(2) Directing Employer to Deduct Tax Arrear
	*Theoretical Issues*
	Direction to employer of assessee to deduct arrears of tax
	Power exercisable when assessee in receipt of salary
	Power exercisable only when tax is unpaid
	Issuance of Notice under section 226(2)
363.	Handling Notice Under Section 226(3) Directing Debtor to Pay Sum Due
	*Contentious and Theoretical Issues*
	Scheme of section 226(3)
	Conditions precedent for attracting section 226(3)
	Requirements of notice to be issued
	Not necessary always that notice should specify amount due from garnishee to assessee
	Relationship of debtor and creditor must between garnishee and assessee
	Compounding of claim with creditor not affect liability under notice
	Rent payable is also a "debt"
	Priority of debts and stock exchange
	Notice under section 226(3) to official liquidator without leave of court, amounts to contempt of court
	Recovery from third party from whom money is due to defaulter
	Department cannot be considered as creditor before assessment is made
	Title deeds deposited as security towards own tax dues cannot be retained towards tax dues of husband
	Provisions of section 226(3) vis-a-vis of Companies Act
	Garnishee order can be issued after service of demand notice
	Garnishee notice, whether can be issued against another department of government
	Amount kept as security for loan availed of by petitioner should be enquired before issuing notice under section 226(3)
	Assessee not absolved from liability to pay tax on mere issuance of notice
	Payment out of the court to decree holder would be proper adjustment of the payment towards the judgment dues
	Garnishee proceedings against debtors of benamidar or benamidar not permissible
	Garnishee proceedings in the case of HUF
	Tax can be recovered from partner where firm is dissolved
	Objection by garnishee
	Time limit within which objection can be raised
	Procedure to be followed for rejection of objections (if any) or for considering the objections
	Inordinate delay in making the statement on oath not justified
	Statement on oath under section 226(3)(vi) can be made by any competent person
	Revocation or amendment of garnishee notice
	Payment in compliance with a garnishee notice under section 226(3)
	Liability of the person discharging any liability to the assessee after receipt of notice under section 226(3), is personal
	Non-compliance with garnishee notice
	Order under section 226--Validity
	Department cannot enforce its claim directly against debtor in case of company in liquidation
	Stock exchange membership card of deceased assessee
	Initiation of recovery proceedings prior to disposal of stay application filed before Commissioner (Appeals) not justified
	Attachment of PPF account not justified
	*Practical Solutions*
	Notice under section 226(3)
	Time limit for issue of notice
	Failure consequences
	Action to be taken on receipt of notice
	Certain parameters to be followed by authorities
	Section LII--Dealing with Situation Arising Owing to Interest Related Provisions [Sections 234 to 234C]
364.	Handling Notice of Demand Charging Interest Under Section 234A
	*Contentious and Theoretical Issues*
	Applicability of provision of section 234A
	Defaults attracting charge of interest under section 234A(1)
	Defaults attracting charge of interest under section 234A(3)
	Rate of interest under section 234A
	Period for which interest is to be charged
	Amount of tax on which interest is to be paid under section 234A
	Delay in filing return to attract interest
	Adjustment of tax paid under section 140A
	Meaning of regular assessment
	Correlation of section 234A with section 140A
	Proportionate increase or decrease to be made
	Procedure to be followed in calculation of interest
	Meaning of 'due date' in the context of section 234A
	Mere issue of notice under section 142(1) would not confer jurisdiction to levy interest under section 234A
	Quantum of tax on which interest is payable under section 234A
	Where advance tax paid belatedly
	Interest can be charged even by way of rectification under section 154
	Chargeability of interest under section 234A where no return filed
	Payment of tax before due date of filing return but belated filing of return
	Self-assessment tax paid before due date but return filed belatedly--Whether interest leviable under section 234A
	Chargeability of interest under section 234A on self-assessment tax paid before the due date of filing of return of income
	Delay in payment of self-assessment tax
	Interest payable up to date of filing of return or up to date of payment of self-assessment tax
	Chargeability without giving credit to the self-assessment tax paid
	Seizure of books of account vis-a-vis interest under section 234A
	Assessing officer framing assessment under section 144 and charging interest up to completion of assessment from the due date of filing return under section 139
	Chargeability of interest in case of time barred and invalid return
	Interest under section 234A not leviable where all due taxes were paid before delayed filing of return
	Assessee under no obligation to file return
	Where return filed under section 153A
	Where return was defective
	Tax paid beyond financial year
	TDS, when to be deducted for computation of interest
	Period for which interest under section 234A was chargeable where assessment was made for the first time under section 147
	No specific order under a particular section to levy interest
	Reduction or waiver of interest--Powers delegated to Chief CIT or CIT
	Waiver of interest--When possible
	No direction to charge interest in assessment order--Effect of
	Cash seized during search--Whether can be treated as advance tax and interest liability may be determined accordingly
	Set off of MAT credit--Whether to be allowed before or after computation of interest under sections 234B and 234C
	Waiver of interest--No discretionary power to reduce or waive interest as per CBDT Circular
	Effect on section 234A interest where books of assessee were seized
	Chargeability of interest under section 234A in case of a time barred and invalid return
	Chargeability of interest under section 234A where all due taxes had been paid before delayed filing of return
	Period for which interest be chargeable where assessment was made for the first time under section 147
	Leviability of interest of the assessee was subject to tax deduction at source but the deductor did not deduct the tax or deducted lesser tax
	Assessee filed return before due date under section 139(1)
	Validity of revised return filed being valid, no interest leviable
	Charging of interest--Whether mandatory or discretionary
	*Practical Solutions*
	Issuance of Notice Under Section 156 Read With Section 234A
365.	Handling Notice Under Section 234B Seeking to Charge Interest
	*Contentious and Theoretical Issues*
	Defaults attracting charge of interest under section 234B(1)
	Amounts on which interest is to be charged under section 234B(1)
	Whether liability to pay interest arises on assessed income or returned income
	Period for which interest is payable under section 234B(1)
	Period of default in case of assessment made for first time under section 147 or under section 153A [Explanation 2 to section 234B(1)]
	Rate of interest chargeable under section 234B
	Adjustment of interest when tax is paid before regular assessment under section 140A [Section 234B(2)]
	Computation of interest where application for settlement is made [Section 234B(2A)]
	Increase in interest in the case of reassessment/re-computation under section 147/153A [Section 234B(3)]
	Proportionate increase or decrease to be made in interest [Section 234B(4)]
	Regular assessment--Meaning of
	Connotation of the expression 'otherwise'
	Treatment of self-assessment tax paid under section 140A
	Computation of interest under section 234B(2)
	No interest leviable in case last date of payment of advance tax is holiday
	No show-cause notice required for levy of interest
	Leviability of interest where assessee suffered loss
	Assessee pleading interest under section 234C to be computed on returned income of assessee, and not on income assessed by assessing officer
	Leviability--On assessed or returned income
	No interest leviable, in case income subjected to appeal is included
	Period of interest, where regular assessment is made
	Period for which interest chargeable where order passed giving appeal effect
	Default in payment of advance tax by reason of dispute as to taxability of certain income--Not to attract interest under section 234B
	Assessee in the relevant year entitled to exemption from capital gains, in subsequent year exemption withdrawn by operation of law--Whether interest leviable under section 234B?
	Where assessment framed under section 153A
	Period of interest where reassessment made
	Period up to which interest chargeable under section 234B(4)
	Period of charging, whether upto date of regular assessment
	Whether liability to pay interest arises on assessed income or returned income
	Leviability of interest where assessee was not obliged to pay advance tax under section 208
	Where assessee had made short payment under section 140A
	Chargeability of interest under section 234B by invoking section 154
	Position where return of income processed under section 143(1)(a) is subsequently reopened
	Default in payment of advance tax by reason of dispute as to taxability of certain income
	Chargeability of interest under section 234B, whether has to be from 1st day of assessment year or from the date of intimation under section 143(1) to the date of completion of assessment
	Requirement of specific order as to levy of interest under section 234B
	Period for which section 234B interest would be leviable, where return was processed under section 143(1) but reassessment was made later on
	Advance tax liability arisen due to enhancement of assessment under section 147
	Assessee challenging levy of interest
	*Practical Solutions*
	Issuance of notice under section 156 read with section 234B
366.	Handling Notice Under Section 234C Seeking to Charge Interest
	*Theoretical Issues*
	Default attracting charge of interest under section 234C
	Instalments of advance tax payable and interest payable
	Meaning of the expression "tax due on returned income"
	No interest leviable under section 234C in certain cases
	Interest, where not leviable
	Chargeability of interest in absence of specific direction in assessment order
	Cheque issued by the assessee cleared after due date of payment of advance tax
	Income arising after payment of last instalment of advance tax
	Period of chargeability of interest under section 234C
	Chargeability of interest under section 234C on basis of original return or revised return
	Assessed income or returned income to be basis for levy of interest
	Leviability of interest under section 234C where the higher instalment was paid later on
	Interest under section 234C be chargeable, subject to maximum of three months, irrespective of the period of default
	When interest under section 234C not leviable
	Chargeability of interest under section 234C in the absence of a specific direction in the assessment order
	Position vis-a-vis section 234C where there was TDS in excess of the tax payable on returned income
	Necessity of rejecting application for waiver of interest under section 234C to be a speaking order
	Where cheque issued by the assessee got cleared after the due date of payment of advance tax
	Where income arose after payment of the last instalment of advance tax
	Income offered in return filed in response to notice under section 148
	Where return filed pursuant to reassessment notice
	Returned income vis-a-vis assessed income
	Considerable advance tax paid by assessee
	*Practical Solutions*
	Issuance of notice under section 156 read with section 234C
	Section LIII--Refund Related Proceedings [Sections 244A and 245]
367.	Handling Notice Under Section 244A for Intimating Reduction in Interest Amount
	*Contentious and Theoretical Issues*
	Interest on refund
	Method of calculation of interest on refund
	Circumstances an assesee would be entitled to additional interest on refund
	Adjustment of interest payable as a result of certain orders
	Interest in case of delayed refund of TDS or for wrong TDS
	Refund arising on excess payment of self assessed-tax and tax paid on demand notice under section 156
	Refund arose after MAT credit
	Interest claimed on advance tax and TDS or MAT credit
	Failure to apply for refund--Effect of
	Amount due from assessee and adjustment against interest on refund
	Period for which interest on refund payable--Date of refund voucher being relevant
	Interest on delayed payment of interest on refund
	Interest on self assessment tax being refunded
	Allowability of interest on self-assessment tax paid
	Assessee entitled to interest in case of delayed refund of TDS
	Interest on interest
	Assessee entitled to interest on refund of penalty amount
	Assessee be entitled to receive interest on refund under section 244A on excess TDS deposited under section 195
	Necessary to grant interest on refund simultaneously with the issue of refund
	Entitlement of assessee to interest on delayed payment of refund even when the delay was attributable to assessee himself
	Interest on unpaid interest component
	Addition on account of interest income
	Delay in refund--Delay being not attributable to assessee
	Amount due from assessee and adjustment against interest on refund
	Period for which interest on refund payable--Date of refund voucher being relevant
	*Practical Solutions*
	Issuance of notice to intimate reduction in interest amount
	Form and contents of notice
	Action to be taken by the assessee on receipt of notice
	Failure consequences
	Remedy available
368.	Handling Notice Under Section 245 Proposing to Set Off Refund Against Demands
	*Theoretical Issues*
	Scheme of section 245
	Authorities competent to invoke section 245
	Pre-requisites for invoking of section 245
	Section 245 cannot be applied to refunds due under any other Act
	Prior intimation must be given to assessee of the proposed action
	Assessee can claim set-off
	Opportunity of hearing
	*Practical Solutions*
	Issuance of notice under section 245
	Form and contents of notice
	Action to be taken on receipt of notice
	Failure consequences
	Remedy available with assessee
	Section LIV--Managing Settlement of Cases [Sections 245BC to 245H]
369.	Notice and Applications Under Section 245BC for Transfer of Case from One Bench to Another
	*Theoretical Issues*
	Scheme of section 245BC
	Opportunity of hearing
	*Practical Solutions*
	Filing of application by assessee under section 245BC
	Notice to be issued under section 245BC
	Application by assessee for hearing when transfer is being affected on application filed by the Principal Commissioner or Commissioner or Principal Chief Commissioner or Chief Commissioner
	Issuance of notice for hearing
370.	Application Under Section 245C for Settlement of Cases
	*Contentious and Theoretical Issues*
	Filing of application under section 245C optional
	Conditions precedent for filing application
	Form and content of application
	Procedure for filing settlement application
	Impact of giving hearing opportunity to revenue at admission stage
	Calculation of tax when an application for settlement of case is filed
	Interest on tax payable in pursuance of an order under section 245D(4) to be calculated on per month basis instead of per annum basis
	Proceeding after receiving application for settlement of case
	Necessity of recording of finding by the commission as regards full and true disclosure of income
	Opportunity of hearing before rejecting application
	Justification of rejection of application for settlement
	Consequences when opportunity of hearing not provided
	Duty of assessee to intimate the assessing officer about the making of application for settlement
	Application for settlement filed before 1-6-2007 but not allowed under section 245D(1) shall be deemed to have been allowed to be proceeded with if additional tax and interest thereon is paid on or before 31-7-2007
	Calling for report of Commissioner [Section 245D(2B)]
	Disclosure of information in the application for settlement
	No withdrawal of application
	Power of Settlement Commission to declare application for settlement as invalid on receipt of report from the Principal Commissioner or Commissioner
	Application for settlement of case allowed to be proceeded with but order under section 245D(4) not passed before 1-6-2007, then such application shall not be further processed unless additional tax is paid upto 31-7-2007
	Records may be called for and investigation report may be obtained from Principal Commissioner or Commissioner in respect of application for settlement allowed to be further proceeded
	Power of Settlement Commission to pass appropriate orders after examination of records and report of the Principal Commissioner or Commissioner
	Time limit for passing order by Settlement Commission
	Rectification of order of Settlement Commission
	Bar on subsequent application for settlement in certain cases
	Allowability of second application for settlement of cases
	Maintainability of writ petition against rejection of application for settlement
	*Practical Solutions*
	Issuance of notice under section 245D(1) before rejecting application under section 245C
	Issuance of notice under section 245D(2C)
	Issuance of notice under section 245D(4)
371.	Handling Notice for Declaring Settlement Void Under Section 245D(6)
	*Theoretical Issues*
	Scheme of section 245D(6)
	Issuance of notice for hearing
	Form and contents of notice
	Action to be taken on receipt of notice
	Failure consequences
	*Practical Solution*
372.	Handling Notice for Charging Interest Under Section 245D(6A)
	*Theoretical Issues*
	Payment of tax and charge of interest under section 245D(6A)
	Levy of interest in case of partnership firm
	Notice to be issued before levy of interest under section 245D(6A)
	*Practical Solution*
373.	Application Under Section 245G for Supplying Certified Copy of Commissioner's Report
	*Theoretical Issues*
	Scheme of section 245G
	Copies to be furnished to rebut evidence [Proviso to section 245G]
	Application for obtaining Commissioner's report under section 245G
	Form of application
	*Practical Solution*
374.	Application Under Section 245H for Granting Immunity from Penalty and Prosecution
	*Theoretical Issues*
	Power to grant immunity from prosecution and penalty
	Filing of application for grant of immunity from prosecution and penalty
	Application when to be filed
	*Practical Solution*
375.	Filing of Notice Under Section 245H(2) for Withdrawing Immunity Granted
	*Theoretical Issues*
	Automatic withdrawal of immunity granted
	Withdrawal of immunity granted by the order of Commission
	Purpose of issuance of notice under section 245H(2)
	Action to be taken on receipt of notice
	Failure consequences
	*Practical Solution*
	Section LV--Procedure Vis-a-Vis Seeking Advance Ruling [Section 245N]
376.	Application for Advance Ruling Under Section 245N
	*Theoretical Issues*
	What is advance ruling [Section 245N(a)]
	Person entitled to seek advance ruling
	Form of application
	Persons competent to sign the application [Rule 44E]
	Fees for advance ruling
	Application in quadruplicate to be accompanied by requisite fee
	Withdrawal of application
	Modification of application at time of hearing
	*Practical Solutions*
	*Submission of Applications*
	Form of application by non-resident applicant referred to in section 245N(a)(i)
	Form of application by resident applicant referred to in section 245N(a)(ii)
	Form of application by resident applicant referred to in section 245N(b)(iia)
	Form of application by person falling within class of persons notified by government
	Form of application by resident or non-resident referred to in section 245N(b)(iiia)
377.	Processing of Application by Authority for Advance Ruling
	*Contentious and Theoretical Issues*
	Action to be taken on receipt of application
	Return of records to Commissioner
	Application either to be allowed or rejected
	Scope of discretion to be exercised by AAR
	Entertainment of application filed after having filed return of income
	Circumstances when application not to be allowed
	Opportunity of being heard a must before rejection of application
	Reasons of rejecting application
	Copy of order to applicant
	Examination of documents and pronouncement of advance ruling
	Opportunity of being heard before pronouncement where requested for
	Time period for pronouncing ruling
	Copy of advance rulings to be sent to applicants and Commissioner
	Certification of copies of advance rulings pronounced by authority
	No power to income-tax authority and Appellate Tribunal to proceed to decide any issue raised in application for advance ruling by a resident
	Justification to decline to give ruling due to alleged circumvention of SEBI guidelines
	Notice under section 245R(2)
	*Practical Solution*
	Section LVI--Arguing Appeal Before Commissioner (Appeals) [Sections 246A to 250]
378.	Notices and Application for Filing Appeal Under Section 246A
	Orders appealable before Commissioner (Appeals) from 1-10-1998
	Form for filing an appeal
	Period of limitation for filing appeal
	Computation of time limit where service of notice is through affixture
	Appeal fees
	Documents to be attached with an appeal memo
	Refund of excess appeal fees
	Preparation of statement of facts
	Relevance of opportunity of hearing
	Non admission of manually filed appeal
	Procedure of E-filing of first appeal effective from 1-3-2016
	Steps for e-filing of first appeal
	Precautions while submitting Form 35 online
	Electronic Verification Code (EVC) for electronically filed form of appeal to Commissioner (Appeals)
	Introduction of faceless appeal scheme effective from 1-11-2020
379.	Preparation of Grounds of Appeal
	*Theoretical Issues*
	Role of grounds of appeal
	Language to be used while framing grounds of appeal
	Grounds to be precise, concise and not argumentative
	Nature of dispute and expected relief to be highlighted
	Reference of case law should be avoided
	Preferences to be given in grounds of appeal
	Expected relief to be stated in ground of appeal
	Characteristics of a good drafting of grounds of appeal
	*Practical Solution*
380.	Drafting of Appeal Before Commissioner (Appeals)
	Appropriate statement of facts and grounds of appeal
	Example of statement of facts and grounds of appeal
	Example of statement of facts and grounds of appeal
381.	Miscellaneous Aspects Relating to Filing of Appeal
	*A. Condonation of Delay*
	Commissioner empowered to condone delay
	Grounds for condonation of delay to be mentioned in Form No. 35
	Discretion to condone delay--To be exercised judiciously
	Appeal filed before Ayakar Seva Kendra (ASK) instead of Commissioner (Appeals)
	Condonation of delay in Faceless Appeal Scheme
	*Practical Solutions*
	*B. Requirement Regarding Payment of Tax*
	Appeal vis-a-vis payment of tax
	Application to be filed compulsorily for availing of exemption under section 249(4)(b)
	Condition of payment of admitted tax before admitting appeal, whether enforceable where amount far in excess belonging to assessee available with department
	*C. Withdrawal of Appeal*
	Possibility of withdrawal of appeal
382.	Tips Vis-a-Vis Effective Representation Before Commissioner (Appeals)
383.	Notices and Application Under Section 250 in Regard to Hearing of Appeal
	*Theoretical Issues*
	Fixation of date and place of hearing
	Person entitled for being heard
	Adjournment of hearing
	Ex-parte order without providing opportunity of hearing not justified
	Making of altogether new claim before Commissioner (Appeals)
	No personal hearing under Faceless Appeal Scheme
	*Practical Solutions*
384.	Powers of Commissioner (Appeals)
	*Theoretical Issues*
	Power of Commissioner (Appeals) provided under section 251
	Power to enhance assessment
	Enhancement on account of new source of income whether permissible
	Commissioner's power to make further enquiry
	Power to admit additional evidence
	*Practical Solutions*
	Procedure for Admissibility of Additional Evidence Where Not Followed
	Filing and Admission of Additional Evidence Under Faceless Appeal Scheme
	Filing of Additional Evidence
	Admission of Additional Evidence
	*Power to Admit Additional Ground*
	*Filing of Additional ground in Faceless Appeal Scheme*
	Section LVII--Arguing Appeal Before Appellate Tribunal [Sections 253 to 254]
385.	Notices and Applications Vis-a-Vis Appeal before Tribunal Under Section 253(1)
	*Contentious and Theoretical Issues*
	Orders appealable before Tribunal
	Appeal against order passed in pursuance of directions of DRP withdrawn
	Appeal not maintainable where tax effect is less than the limit specified in the related CBDT Instruction
	Appeal not maintainable where assessee did not raise the grounds based on order under section 143(3)/147
	Time limit within which appeal shall be filed
	Time limit within which memorandum of cross objection be filed
	Place for filing appeal
	What to accompany memorandum of appeal
	Revised form in case of change in address
	Continuation of proceedings after the death or insolvency of a party to the appeal
	Fees payable for filing appeal before Tribunal
	Instructions regarding e-payment of ITAT Fees
	Appeal against penalty order under section 271FA not maintainable before Tribunal
	*Procedural Solutions*
	Form for filing appeal
	Suggestions by Registrar of Income Tax Appellate Tribunal
386.	Filing Memorandum of Cross Objections Before Tribunal
	*Form for Memorandum of Cross Objections*
387.	Application for Condonation of Delay in Filing Appeal Before Tribunal and Withdrawal of Appeal
	*Contentious and Theoretical Issues*
	Condonation of delay
	Procedure to be followed for condoning delay
	Approach to be taken while condoning delay
	Delay when condoned
	Disposal of application for condonation of delay
	Dismissal of appeal for want of prosecution
	Withdrawal of appeal
	Challenge to order condoning delay in filing appeal
	*Practical Solutions*
388.	Specimen Grounds of Appeal Before Tribunal
	Specimen grounds for appeal before Tribunal
	A case study vis-a-vis appeal to Tribunal
389.	Team-based Mechanism for Appeal Before Tribunal
390.	Handling of Hearing by Appellate Tribunal Under Section 254
	*Theoretical Issues*
	Fixation of date and place of hearing
	Consolidation of appeals without issuing notice not valid
	Notice for date and place fixed for hearing
	Adjournment of hearing
	Procedure regarding ex parte hearing
	*Practical Solutions*
391.	Powers of Tribunal
	*Theoretical Issues*
	Power of Tribunal to admit additional evidence
	Power to admit additional ground--Rule for furnishing additional ground of appeal
	Raising of legal question, at appeal stage and not as additional ground of appeal
	Power to stay recovery of tax
	*Practical Solutions*
392.	Monetary Limits for Filing Appeals by Department with Subsequent Monitoring
	Board empowered to issue instruction fixing monetary limits to regulate filing of departmental appeal
	Monetary limits for filing departmental appeals as currently applicable--Circular No. 3/2018, dt. 11-7-2018, as amended by Circular No. 17/2019, dt. 8-8-2019
	Earlier instructions regarding monetary limits
	Maintainability of appeal where tax effect less than prescribed limit but substantial question of law involved
	Interest, whether to be included in computing monetary limit of tax effect
	Small tax effect vis-a-vis composite assessment order
	Binding nature of CBDT's instruction
	Applicability of CBDT Circular retrospectively to pending appeals
393.	Filing of Application for Rectification by Tribunal Under Section 254(2)
	*Theoretical Issues*
	Power of rectification by Tribunal under section 254(2)
	Fees for filing rectification application
	Procedure for dealing with rectification application
	Notice of hearing under section 254(2)
	Form and contents of notice
	Action to be taken on receipt of notice
	Failure consequences
394.	Preparation of Paper Book Before ITAT As Per Rule 18 of ITAT Rules
	*Theoretical Issues*
	What is paper book
	Procedure for filing paper book
	Precautions to be taken while preparing paper book
	Condonation of delay in furnishing paper book
	*Practical Solutions*
395.	Application for Extension of Stay Granted by Tribunal
	Order of stay can be passed for a period not exceeding 180 days
	Extension of period of stay
	Period of stay not to be extended beyond 365 days even where delay is not attributable to assessee
	Conclusions drawn by the Delhi High Court in the case of CIT & Ors. v. Maruti Suzuki (India) Ltd. & Ors. 2014 TaxPub (DT) 2216 (Del-HC)
396.	Passing of Order by Tribunal
	Limitation period for deciding appeal
	Requirement as regards communication of orders by Tribunal to the parties
	Tribunal require to pass reasoned order
	Pronouncement of order by Tribunal
	Duty of Tribunal to consider the case cited by the assessee
	Non-consideration of the decision rendered by the Co-ordinate Bench on identical issue
	Section LVIII--Filing of Appeal to High Court and Supreme Court [Sections 260 and 261]
397.	Filing of Appeal Before High Court
	*Theoretical Issues*
	Appeal against order of Tribunal liable before High Court
	Person entitled to file appeal before Tribunal
	Time limit for filing appeal
	No condonation of delay in absence of bona fide explanation therefor
	Territorial jurisdiction of High Court
	Appeal not maintainable if tax effect is small and no question of law involved
	Question not arising out of order of Tribunal not appealable before High Court
	Condonation of delay in re-filing the appeal
	No plea can be raised without factual basis
	Issue where already settled by jurisdictional High Court
	Appeal not continuance of assessment proceeding
	Effect of dismissal of appeal filed under section 260A
	Appreciation of evidence is not usually within High Court's jurisdiction
	Tribunal cannot be made a party to appeal
	Requisite fee for appeal to the High Court
	Permission to file Income Tax returns without complying with the condition of providing Aadhar Card registration number
	Standard operating procedure on filing of appeals to High Court under section 260A and related matter
	Guidelines for engagement of Standing Counsel to represent the Income Tax Department
	*Practical Solution*
398.	Filing of Appeal to Supreme Court Under Section 261
	*Theoretical Issues*
	Appeals to Supreme Court
	Monetary limit for filing appeal before Supreme Court
	Appealability of order of special Tribunals
	Granting of certificate of fitness
	Time limit for making an application for the grant of certificate of fitness
	Certificate of fitness when to be granted
	Certificate need not mention each question in respect of which appeal may be filed
	Applicability of provisions of Code of Civil Procedure
	Statement of case and order of Tribunal to be submitted
	Costs of appeal
	Judgment to be forwarded to the Tribunal
399.	Miscellaneous Appeals Related Conveyancings
	Section LIX--Revision Under Section 263 and 264
400.	Handling Notice Under Section 263 Before Suo Motu Revision
	A. General
	Objective behind section 263
	Revision of an order passed by the assessing officer
	Under what circumstances, order passed by assessing officer can be revised under section 263
	Orders that can be revised under section 263
	Orders that cannot be revised
	Merger doctrine
	Subject matter of appeal--Connotation of
	Invocation of jurisdiction in respect of issue decided in-appeal by Commissioner (Appeals)
	Revision of order giving appeal effect
	Revision proceeding not sustainable where initial notice for revision was signed by ITO (Technical) instead of CIT
	Pre-requisites for exercising power of revision under section 263
	Requisite conditions for exercise of revisional power
	Revision not possible unless order served on assessee
	Any proceedings under the Act--Scope of
	Commissioner to point out the exact error in the order to be revised, while providing opportunity to assessee
	Factors that must exist before exercise of power under section 263
	Intimation under section 143(1)(a) cannot be revised under section 263
	Invocation of jurisdiction on the basis of audit objection
	Faceless revision
	Faceless effect of orders
	Principles as to exercise of revisionary powers under section 263
	B. Record--Meaning and Scope
	Meaning of 'record' for the purposes of section 263
	Scope of 'record' as clarified in CIT v. Shree Manjunathesware Packing Products & Comphor Works (1998) 231 ITR 53 (SC)
	Valuation report submitted by valuation officer after passing of assessment order, a part of record
	Records pertaining to other person cannot be taken into account for the purpose of section 263
	Material made available after completion of assessment be taken into consideration by Commissioner
	Material collected during survey conducted under section 133A after completion of assessment can be said to be part of record
	ITNS 150 can be said to be an order for the purpose of section 263
	Where statement recorded in search operation carried out in relation to another person
	CIT can make an enquiry for invoking section 263 on the basis of records of other persons
	Record includes record of other persons
	An event which had occurred subsequent to passing of order of assessing officer can be taken within four corners of the term 'record'
	C. Order Erroneous and Prejudicial to Interest of Revenue--Meaning and Scope
	Order passed by the assessing officer deemed to be erroneous in so far as it is prejudicial to the interest of the revenue
	Commissioner to point out as to how order is erroneous and prejudicial
	Erroneous and prejudicial order--Meaning and Socope
	No revision possible where Commissioner did not give any finding as to erroneous and prejudicial order
	Meaning of the word 'erroneous'
	Non-initiation of penalty proceedings does not empower Commissioner to initiate penalty proceedings
	Order when can be treated as erroneous
	Prejudicial to the interest of revenue
	'Prejudicial to the interest of the revenue' does not always mean loss to the revenue
	Order passed after examining material available and seeking explanation
	Assessing officer took one of the possible views--Whether order revisable
	Decision of assessing officer based on binding decision of jurisdictional High Court
	Order erroneous, but not prejudicial, cannot be revised
	Order should be both erroneous as well as prejudicial to the interest of the revenue
	Order passed by assessing officer which is not erroneous but is prejudicial to the assessee cannot be revised under section 263
	Assessment order passed in accordance with the guidelines issued by the CBDT cannot be said to be erroneous
	Commissioner need not to state the manner in which he considered that order of assessing officer was erroneous and prejudicial to revenue and the basis of such conclusion
	Failure to initiate penalty proceeding at the time of passing of assessment order does not render the order erroneous
	Order passed by assessing officer cannot be said to be erroneous where he adopts one possible view out of two
	Order which is not prejudicial to interest of revenue cannot be revised under section 263
	Action under section 263 cannot be taken where assessing officer made proper enquiries
	Where proper enquiries made by assessing officer, order is not erroneous and prejudicial
	Twin conditions must exist in order of assessing officer--Each and every type of mistake cannot be corrected
	Order passed by the assessing officer cannot be be said to erroneous where he passed an order after considering the relevant facts and provisions of law
	Where only one item in the assessment order is found prejudicial to the interest of revenue
	Order erroneous where the assessing officer did not apply the correct law
	Revision proceeding initiated only on the basis of audit objection not sustainable
	Failure to take recourse to the provisions of section 14A make the order of assessing officer erroneous and prejudicial to interest of Revenue
	Lack of proper enquiry render order passed by assessing officer erroneous
	Order passed by the assessing officer getting reopened, not erroneous
	Assessment under section 263 on the ground that the assessee did not file tax audit report
	Commissioner can revise assessment where certain deductions have been allowed in ignorance of provisions of law or without proper verification
	Non-examining loans and credit balances of partners
	Where assessing officer has followed order of higher appellate authorities
	Assessing officer's order passed after necessary enquiry--Whether erroneous and prejudicial order
	Failure to make elaborate discussion in the assessment order would not render the order erroneous
	Commissioner cannot exercise powers merely because there was a second opinion possible on same facts
	Every loss of revenue, consequent to assessing officer's order, may not mean that order concerned is prejudicial to revenue
	Prohibition contained under section 14A is applicable to revision proceedings
	assessing officer's order passed after necessary enquiry--Whether erroneous and prejudicial order
	Revision not permissible merely because commissioner is of different opinion
	CIT asking assessing officer for further enquiry and de novo assessment
	Income surrendered during survey of firm--Treated as business income for section 40(b) only after due satisfaction--Whether order erroneous
	No detailed discussion regarding certain issue in assessment order--Assessing officer taking a plausible view of the matter
	Where exercise under section 263 outsourced by Commissioner to assessing officer
	No incriminating material found against assessee during search hence assessing officer could not make any addition in view of law laid down under section 153A
	Computation of long-term capital gain--Assessee claimed deduction towards indexed cost of construction of compound wall and cost of improvements
	Deemed dividend under section 2(22)(e)--No material unearthed during search
	Where assessing officer had taken a judicial view
	No proper enquiry by assessing officer to find out income generated by assessee
	Lack of enquiry as regards capital infusion by assessee firm in certain joint venture out of borrowed funds
	Lack of enquiry as regards deposit of cash in bank account of lender--Just before unsecured loan was given to assessee-firm
	Assessing officer granted deduction under section 80P without enquiry
	Lack of enquiry as regards increase in partner's capital account
	Lack of enquiry as regards to reflection of individual partner's bank account in the balance sheet of assessee firm
	Where assessing officer failed to make enquiries
	Where assessing officer followed direction of higher authority
	Assessing officer not having made disallowance under section 40A(3) even though assessee had directly deposited cash in the bank account of supplier and such cash payment not being covered within exceptions laid out under rule 6DD
	Incorrect application of law by assessing officer
	Rejection of book results vis-a-vis ad hoc addition without considering substantial increase in turnover and violation of section 40A(3)
	One of possible view taken by assessing officer
	D. Passing of Order Under Section 263
	Kind of orders that can be passed under section 263
	Procedure required to be followed
	Necessity of granting opportunity of being heard
	Commissioner not providing opportunity of hearing to assessee--Validity of revision
	Necessary to record satisfaction before issuance of the show-cause notice
	CIT cannot give direction to the assessing officer to complete the assessment following a particular procedure
	Jurisdiction to revise an assessment order which was made subject matter of appeal before Commissioner (Appeals)
	Invocation of jurisdiction--Appeal pending before Commissioner (Appeals)
	Invocation of jurisdiction in respect of issue decided in-appeal by Commissioner (Appeals)
	Commissioner to record basis on which he deems that order passed assessing officer is erroneous and prejudicial to the interest of the revenue
	Commissioner cannot initiate proceeding under section 263 merely on the ground that the enquiry conducted by the assessing officer was inadequate
	Revision on the basis of fresh facts or any subsequent event
	Powers under section 263 cannot be used for directing a re-verification
	While making fresh assessment in pursuance of revisional order under section 263, the assessing officer is not entitled to examine the items which did not form part of revisional proceedings
	E. Time Limit for Passing of Revisional Order
	Time-limit for exercise of power of revision
	When time limit of two years for passing of revisional order would not apply
	Limitation where reassessment order is sought to be revised
	Limitation where original assessment order is rectified under section 154
	Initial order passed under section 143(3)--Fresh order passed on directions of Commissioner (Appeals)--Reckoning of limitation period
	Period of limitation for the purposes of section 263--Whether from original order or from rectification order is to be counted?
	Initial order passed under section 143(3)--Fresh order passed on directions of Commissioner (Appeals)--Reckoning of limitation period
	Issue being subject matter of intimation under section 143(1) issued 7 years earlier--Such issue not touched upon during scrutiny assessment
	Bar of limitation--Issue pertained to original assessment and not the reopened assessment
	CIT revised assessment framed by assessing officer in the hands of a non-existent entity
	F. Miscellaneous Issues
	Remedy available to assessee against order passed by Principal Commissioner or Commissioner under section 263
	Consequential validity of assessment order
	G. Practice Tips
	Challenging Order under Section 263
	*Practical Solutions*
	Issuance of notice under section 263
401.	Rebutting Proposed Revision Under Section 263
	*Appropriate Reply*
402.	Business Loss on Currency Swap Allowed by Assessing Officer--Reply to Principal Commissioner Against Proposed Revision Under Section 263
	*Appropriate Reply*
403.	Rebutting Notice Issued under Section 263 Where Assessment Completed Without Including Income Surrendered During Survey
	*Appropriate Reply*
404.	Handling Application for Revision Under Section 264
	Object of section 264
	Assessee can either appeal or file revision petition
	Revisionary power can be exercised either suo motu or on an application
	Kinds of orders that can be revised under section 264 of the Act
	Faceless revision
	Kinds of orders that are not revisable under section 264
	'Not prejudicial to the assessee'--Connotation of
	Intimation under section 143(1)--Whether revisionable under section 264
	Order prejudicial to assessee cannot be passed under section 264
	When would an order passed by Commissioner under section 264 be said to be prejudicial to the interest of assessee
	Order passed by the Commissioner declining to interfere
	Limitation period for invoking suo motu revisional powers
	Time limit for filing application for revision under section 264 by an assessee
	Admission of application for revision under section 264 after the expiry of one year
	Principles required to be observed while deciding application for condonation of delay
	Form in which application for revision under section 264 required to be made
	Fee payable for filing an application for revision
	Time limit for passing an order under section 264
	Where Principal Commissioner/Commissioner does not pass revisional order under section 264 within prescribed time limit
	Assessee can withdraw appeal filed to Commissioner (Appeals) and then file a revision petition under section 264 before the CIT
	Where limitation period for passing order of revision under section 264 would not apply
	Order in revision has to be a speaking order
	Where Commissioner (Appeals) has rejected the appeal against an order as time barred or unmaintainable
	Commissioner can consider both the points of law as well as points of facts while deciding an application under section 264
	Commissioner can re-revise an order passed under section 264 on a fresh application by the assessee
	Opportunity of being heard is required to be given to assessee before disposing of application under section 264 by the Commissioner
	Order passed under section 264 is not appealable before the Tribunal
	Principal Commissioner/Commissioner can entertain a new ground which was not urged before the lower authorities
	Where return furnished by assessee is accepted by the assessing officer
	Where Commissioner sets aside an assessment by exercising revisional powers under section 264
	Necessity to serve a copy of assessing officer's report on the assessee
	Assessee failing to exercise appeal right in time--Justification for revision petition
	Writ petition against rejection of application for revision under section 264
	Commissioner required to consider points made by assessee
	Revision authority to consider every issue raised before him
	Application not to be rejected without applying mind
	Discretion to be exercised in accordance with law and reason
	Commissioner to give proper reason for his order
	Opportunity of hearing should be provided to assessee
	Notice period should be reasonable
	Copy of assessing officer's report in answer to revision petition need not be given to assessee
	Period of limitation for making suo motu order of revision
	Computation of limitation period for filing revision petition
	Period of limitation not to be counted from the date of the assessment order
	Period of limitation when original revision petition is defective
	When order can be said to have been made subject matter of appeal
	Order must be subject-matter of an effective appeal
	Applicability of section 264(4)(a)--Time for appeal not having expired
	Bar of section 264(4)(c) applicable only if an appeal filed is maintainable
	Once appeal filed, revision jurisdiction is barred in respect of whole assessment order
	Validity of revision application seeking withdrawal of appeal pending before Commissioner (Appeals)
	Items, even though not raised in appeal, can still not be agitated in revision proceedings
	Revision petition under section 264 maintainable even if statutory appeal before Commissioner (Appeals) pending
	Appeal pending in respect of a different assessment year, Commissioner can revise identical issue for another assessment year
	Even order made subject to appeal by department can be revised
	Exempted income included in return by mistake--Whether remedy available under section 264
	Intimation under section 143(1)--Whether revisable under section 264
	Section 54F benefit, whether could be granted in revision when not claimed during assessment proceedings
	Tax paid at higher rate on a mistaken notion by not considering clauses of DTAA between India and Spain
	*Filing of Application for Revision*
	Application under section 264
	Section LX--Dealing with Penalty Proceedings [Sections 270A to 273AA]
405.	How to Defend Penalty Proceedings
	Opportunity of being heard necessary in penalty proceedings
	Where ambiguity present in language of penal provision, interpretation has to be favourable to assessee
	Order imposing penalty must be speaking order
	Penalty imposition discretionary not mandatory
	Evidence should exist before imposition of penalty
	Doctrine of res judicata not applicable
	Limitation period for imposing penalty
	Notice issued after expiry of limitation period not valid
	Some other practical tips to contest against initiation of penalty proceedings
	Golden rule of defence in penalty proceedings
406.	Notice Under Section 270A Before Levying Penalty for Underreporting of Income
	*Theoretical Issues*
	Levy of penalty for underreporting and misreporting of income
	Penalty, when can be levied under section 270A
	Authorities empowered to impose penalty under section 270A
	Amount of penalty
	Order of penalty
	No penalty shall be levied under section 270A where penalty is levied under section 271AAC in respect of undisclosed income
	Underreporting of income vis-a-vis undisclosed income in search cases as referred to in section 271AAB
	Instances of underreported income
	Circumstances when income would not be considered as underreported
	Cases of misreporting of income
	Determination of underreported income under different situations
	Computation of tax payable in respect of underreported income
	No underreporting of income where assessee offers bona fide explanation and substantiates the same
	Provision contained in section 270A(6)(a) vis-a-vis Explanation 1 to earlier section 271(1)
	*Practical Solutions*
	Procedure to be adopted while imposing penalty
	Notice for imposing penalty
	Action to be taken on receipt of notice
	Remedy available with assessee
407.	Application for Granting Immunity from Penalty Levied Under Section 270A
	*Theoretical Issues*
	Immunity from penalty and prosecution proceedings
	Conditions precedent for grant of immunity from imposition of penalty and prosecution proceedings
	No immunity where penalty proceedings initiated in case of misreporting of income
	Time limit for filing application for immunity
	Form of application under section 270AA
	Immunity to be granted on fulfilment of prescribed conditions
	Order accepting or rejecting application for granting immunity
	Finality of order
	No appeal or revision against assessment or reassessment order where order accepting the application is made
	Immunity under section 270AA vis-a-vis penalty proceedings in earlier years
	*Practical Solution*
408.	Handling Notice Levying Penalty Under Section 271A
	*Theoretical Issues*
	Penalty for failure to keep, maintain or retain books of account, documents, etc.
	Requirement under section 44AA
	Specified professions as per rule 6F(1) and CBDT notification
	Non-applicability of provisions of section 44AA in case total gross receipts is less than prescribed limit [Proviso to rule 6F(1)]
	Amount of penalty
	Authorities empowered to impose penalty
	Onus to prove
	Reasonable opportunity of being heard
	No penalty to be levied in case of reasonable cause
	Penalty not to be levied where assessing officer able to compute income
	Validity of penalty levied before completion of assessment proceedings
	Levy of penalty in case of certain lapses in books of accounts
	Penalty to be levied where no reasonable cause advanced or proved
	Gross receipts exceeding specified limit due to addition under section 68
	*Practical Solutions*
	Notice under section 271A
	Form and contents of notice
	Authority for imposing penalty
	Action to be taken on receipt of notice
	Time limit for levy of penalty
	Remedial measures
409.	Handling Notice Levying Penalty Under Section 271AA
	*Contentious and Theoretical Issues*
	Penalty under section 271AA
	Quantum of penalty
	Authorities empowered to impose penalty
	Meaning of "international transaction"
	Meaning of "specified domestic transaction"
	Information and documents as required under sections 92D(1) and (2)
	No penalty to be levied in case of reasonable cause
	No penalty to be levied where no adverse finding recorded by TPO
	No penalty for non-maintenance of contemporary documentation in respect of international transactions where requisite information furnished and no upward adjustment required
	*Practical Solutions*
	Notice under section 271AA
	Authority for levying penalty
	Penalty when cannot be levied
	Time limit for levy of penalty
	Action to be taken on receipt of notice
410.	Handling Notice Under Section 271AAB in Search Cases
	*Theoretical Issues*
	Section 271AAB when applicable
	Undisclosed income--Meaning of
	Specified previous year--Meaning of
	Specified date--Meaning of
	Amount of penalty as applicable upto 14-12-2016
	Quantum of penalty after amendment by Taxation Laws (Second Amendment) Act, 2016
	No penalty to be imposed under section 270A or under section 271(1)(c) as the case may be
	Penalty under section 271AAB not mandatory
	Penalty under section 271AAB leviable on fulfilment of related conditions
	No penalty under section 271AAB in absence of search
	Determination of undisclosed income on account of household expenditure recorded in seized documents
	No undisclosed income once stock recorded in books of account
	No undisclosed income on account of personal jewellery
	Penalty on basis of excess cash found
	Levy of penalty as regards cash advances towards purchase of land
	Impact of non-specification of charge in notice
	Penalty merely on basis of Statement recorded under section 132(4)
	Undisclosed investment found during search where no column in return to disclose said investment
	No penalty in absence of any material
	Disallowance of claim of deduction
	Applicability of clause (c) of Explanation to section 271AAB
	Initiation of penalty proceedings against a dead person not valid
	Applicability of provisions of sections 274 and 275
	Challanging penalty due to defects in notice
411.	Handling Notice Proposing Penalty Under Section 271AAC
	*Theoretical Issues*
	Penalty in respect of income referred to in sections 68 to 69D
	Cumulative impact of sections 115BBE, 271AAC and 271AAB(1A)
	Illustration
412.	Handling Notice Proposing Penalty Under Section 271AAD
	Penalty under section 271AAD
	Levy of penalty on any other person who causes to make false entry
	Meaning of false entry
413.	Handling Notice Under Section 271B for Failure Regarding Tax Audit
	*Contentious and Theoretical Issues*
	Penalty under section 271B
	Audit when required to be done under section 44AB
	Penalty not to be imposed when reasonable cause exist
	Penalty under section 271B--Whether mandatory or discretionary?
	'Turnover' for the purpose of section 44AB
	Penalty not imposable for technical reasons
	Income where computed under section 44AD by disclosing proper GP
	No penalty in case of inadvertent mistake in filing e-return
	Dismissal of appeal for failure to comply with office objections
	Reasonable cause--Meaning of
	Cases where held to be reasonable cause
	*Practical Solutions*
	Notice under section 271B
	Penalty when cannot be imposed
	Authority for levying penalty
	Time limit for levy of penalty
	Action to be taken on receipt of notice
414.	Handling Notice Proposing Penalty Under Section 271BA
	*Theoretical Issues*
	Object of section 271BA
	Quantum of penalty
	Report from an accountant as required by section 92E
	Reasonable cause vis-a-vis ignorance of law by CA
	*Practical Solutions*
	Notice under section 271BA
	Who can levy penalty
	Penalty when cannot be levied
	Time limit for levy of penalty
	Action to be taken on receipt of notice
415.	Notice Under Section 271C Before Levying Penalty for Failure Regarding TDS
	*Theoretical Issues*
	Scope of section 271C
	Quantum of penalty
	Non-applicability of provision
	Nature of penalty
	Burden to prove
	Failure to deduct tax at source due to reasonable cause
	*Practical Solutions*
	Notice under section 271C
	Penalty when cannot be levied
	Authority competent to levy penalty
	Action to be taken on receipt of notice
	Time limit for levy of penalty
416.	Notice Under Section 271CA Before Levying Penalty for Failure Regarding TCS
	*Theoretical Issues*
	Levy of penalty under section 271CA
	Issuance of notice under section 271CA
	Authority competent to impose penalty
	No penalty in case of reasonable cause
	Remedy against order of penalty under section 271CA
	Action to be taken on receipt of notice
	*Practical Solution*
417.	Handling Notice Regarding Penalty for Violation of Section 269SS
	*Contentious and Theoretical Issues*
	Scope of section 271D
	Quantum of penalty
	Benefit of threshold limit to be provided
	Circumstances when no penalty leviable
	Share application money does not constitute deposit
	Transactions under bona fide belief
	Surrender of money
	Penalty not leviable in case of reasonable cause
	Burden to prove reasonable cause
	Amount in reference of which penalty levied
	Bona fide book adjustment
	Justifiability of levy of penalty by re-opening assessment
	Payment by firm to partners or vice versa
	No penalty in case of transaction between sister concern
	Receipt through the "foreign inward remittance payment system" instead of account payee cheque or DD
	Capital contribution by partner in cash
	Bona fide belief of assessee as to money was towards allotment of shares and not loan or deposit
	Assessee acting as agent of principal
	Cash brought into assessee company by its promoter-director
	Both creditor and borrower being agriculturist
	Temporary advances for business exigencies
	Penalty not to be imposed on basis of conjectures and surmises
	Penalty based on assessment order subsequently set aside, not valid
	Transactions between family members not liable to penalty
	*Handling Notice*
	Notice under section 271D
	Who can levy penalty
	Penalty when cannot be levied
	Time limit for levy of penalty
	Action to be taken on receipt of notice
	Remedial measures
	*Practical Solutions*
418.	Handling Notice Regarding Penalty for Violation of Section 269ST
	*Theoretical Issues*
	Levy of penalty under section 271DA
	What section 269ST provides
	Modes prescribed via rules 6ABBA
	Non-applicability of section 269ST
	No penalty to be levied where sufficient reasons exist for contravention
	*Practical Solutions*
	Notice under section 271DA
	Who can levy penalty
	Time limit for levy of penalty
	Action to be taken on receipt of notice
	Remedial measures
419.	Handling Notice Regarding Penalty for Violation of Section 269SU
	*Theoretical Issues*
	Levy of penalty under section 271DB
	Requirement under section 269SU
	Prescribed electronic modes for purpose of section 269SU
	Clarification in case of B2B transactions
	No penalty in case of good and sufficient reason
	Authority empowered to levy penalty
420.	Handling Notice Regarding Penalty for Violation of Section 269T
	*Contentious and Theoretical Issues*
	Provisions relating to levy of penalty under section 271E
	Quantum of penalty
	Authority empowered to impose penalty
	Scope of section 269T
	Computation of period of limitation
	Not necessary to levy penalty equal to 100 per cent of amount transacted
	Assessee having acted in good faith
	No penalty in case of reasonable cause
	Entries of repayment by directors and relatives in their personal capacity
	No penalty only because of clerical mistake
	No penalty in case of mere passing of journal entries
	Amount paid where claimed to be less than Rs. 20,000
	Transaction between HUF and its members
	Payment to firms exceeding specified limits in cash where firm is not an independent entity
	Re-payment of capital in cash
	No penalty where transactions between close associates
	*Practical Solutions*
	Notice under section 271E
	Authority empowered to impose penalty
	Penalty when cannot be levied
	Time limit for levy of penalty
	Action to be taken on receipt of notice
	Remedial measures
421.	Handling Notice Proposing Penalty Under Sections 271FA and 271FAA
	*Theoretical Issues*
	Penalty when leviable under section 271FA
	Penalty when leviable under section 271FAA
	No penalty under section 271FA in case reasonable cause provided
	Person liable to file statement of financial transaction or reportable account
	Period for which statement to be furnished
	Meaning of specified financial transactions [Section 285BA(3)]
	Defective statement
	Notice to furnish statement
	Correction statement
	Central Government empowered to make rules [Section 285BA(7)]
	Penalty, when leviable under section 271FA
	No penalty under section 271FA where breach of provision was technical and venial
	*Practical Solutions*
422.	Handling Notice Proposing Penalty Under Section 271G
	*Contentious and Theoretical Issues*
	Levy of penalty under section 271G
	Information and documents under section 92D(3)
	Penalty where no specific information asked for by assessing officer
	Necessity of recording satisfaction by assessing officer
	No penalty in case of reasonable cause
	Failure to maintain documents and information and failure to get accounts credited
	No penalty where requisite documentation filed within stipulated period
	No penalty in absence of specific allegation as to non-compliance
	No penalty where assessee had furnished substantial information
	Justification of levy of penalty in case of late submission of documents
	*Practical Solution*
	Notice under section 271G
	Penalty by whom can be levied
	Penalty when cannot be imposed
	Time limit for levy of penalty
	Action to be taken on receipt of notice
423.	Handling Notice Levying Penalty for Failure to Furnish TDS/TCS Statement
	*Theoretical Issues*
	Penalty, when leviable under section 271H
	Quantum of penalty
	No penalty if statement furnished within one year after payment of TDS alongwith interest and fee
	Applicability of provision of section 271H
	No penalty where reasonable cause exists
	Penalty under section 271H to be in addition to fee provided in section 234E
	*Practical Solutions*
	Notice under section 271H
	Penalty when cannot be levied
	Time limit for levy of penalty
424.	Handling Notice Proposing Penalty for Failure to Furnish or Furnishing Inaccurate Information Under Section 195(6) [Section 271-I]
	*Theoretical Issues*
	Penalty when leviable under section 271-I
	Quantum of penalty
	No penalty in case of there being reasonable cause
	Information required to be furnished under section 195(6)
	Issuance of notice under section 271-I
	*Practical Solutions*
425.	Handling Notice Levying Penalty Under Section 271J
	*Theoretical Issues*
	Penalty when leviable under section 271J
	Amount of penalty
	No penalty in case of there being reasonable cause
	Issuance of notice under section 271J
	*Practical Solution*
426.	Handling Notice Under Section 272A(1) Before Levying Penalty for Specific Failure
	*Theoretical Issues*
	Defaults which attract penalty under section 272A(1)
	Quantum of penalty
	Who can levy penalty
	*Practical Solution*
	Notice under section 272A(1)
	Penalty when cannot be levied
	Time limit for levy of penalty
	Action to be taken on receipt of notice
427.	Handling Notice Under Section 272A(2) Before Levying Penalty for Various Failures
	*Contentious and Theoretical Issues*
	Scope of section 272A(2)
	Defaults which attract penalty under section 272A(2)
	Quantum of penalty
	Authority for levying penalty
	Opportunity of being heard
	Availability of appeal
	No penalty in case of reasonable cause
	Sickness of accountant, a reasonable cause
	No penalty for technical breach of provisions of section 203
	*Practical Solutions*
	Notice under section 272A(2)
	Penalty when cannot be levied
	Who can levy penalty
	Time limit for levy of penalty
	Action to be taken on receipt of notice
	Remedial Measures
428.	Handling Notice Regarding Levy of Penalty Under Section 272AA
	*Theoretical Issues*
	Penalty for failure to comply with provisions of section 133B
	Authority to impose penalty under section 272AA
	Quantum of penalty
	Issuance of notice under section 272AA
	Penalty when cannot be levied
	Time limit for levy of penalty
	Action to be taken on receipt of notice
	Remedial measures
429.	Handling Notice Levying Penalty Under Section 272B
	Relevance of section 272B
	Penalty for failure to comply with provisions of section 139A
	Penalty for quoting wrong PAN or Aadhar number
	Provision contained in sections 139A(5)(c), 139A(5A), 139A(5C)
	Penalty for failure to quoting and authenticaing PAN or Aadhaar
	Authority to impose penalty
	Discretion of assessing officer
	Opportunity of being heard
	No penalty in case of reasonable cause
	Responsibility in case of submitting incomplete declaration in Form No. 60
	Penalty linked with person and not with number of defaults
	*Practical Solution*
	Notice under section 272B
	Who can levy penalty
	Penalty when cannot be levied
	Action to be taken on receipt of notice
	Time limit for levy of penalty
430.	Handling Notice Levying Penalty Under Section 272BB
	*Theoretical Issues*
	Penalty for failure to comply with provisions of section 203A
	Penalty for failure in quoting or for false quoting of TAN
	Issuance of notice under section 272BB
	Authority for levying penalty
	Penalty when cannot be imposed
	Time limit for levy of penalty
	Action to be taken on receipt of notice
	*Practical Solution*
431.	Prayer Under Section 273A for Waiver of Penalty
	*Contentious and Theoretical Issues*
	Scheme of section 273A
	Time limit for disposing of application under section 273A
	Finality of order
	Conditions for reduction or waiver of penalty
	No limitation for making application under section 273A
	Filing of appeal against penalty vis-a-vis application under section 273A
	Opportunity of being heard by Principal Commissioner or Commissioner
	Order must be speaking order
	Application of mind by Principal Commissioner or Commissioner
	Form of order
	Existence of 'genuine hardship'
	*Practical Solutions*
	Issuance of notice under section 273A
432.	Application Under Section 273AA for Granting Immunity from Penalty
	*Theoretical Issues*
	Application to Principal Commissioner or Commissioner for granting immunity from penalty
	Granting of immunity is subject to certain conditions
	Time limit for granting immunity
	Withdrawal of immunity
	*Practical Solution*
433.	Application for Stay of Penalty Proceedings
	*Specimen Application*
434.	E-Penalty Proceedings
	Central Government empowered to notify scheme for e-penalty proceedings
	Central Government empowered to give directions for certain exceptions and modifications
	Notification to be laid before each house of Parliament
435.	Faceless Penalty Scheme, 2021 [Sections 274(2A), 274(2B) and 2742(C)]
	Providing mechanism for faceless penalty
	Notification of scheme
	Important terminologies
	Scope of the scheme
	Faceless penalty centres
	National faceless penalty centre to be communication central
	Authorities attached to Penalty units
	Temporary arrangements
	Procedure in penalty
	Rectification Proceedings
	Appellate Proceedings
	Exchange of communication exclusively by electronic mode
	Authentication of electronic record
	Delivery of electronic record
	No personal appearance in the Centres or Units
	Power to specify format, mode, procedure and processes
	Modification of provisions of the Act
	Section LXI--Handling Prosecution Proceedings [Sections 276A to 278AB]
436.	Handling Notice Under Section 276A Before Launching Prosecution
	Scope of section 276A
	*Practical Solutions*
	Notice under section 276A
	Time limit
	Sanction required for prosecution under section 276A
	Action to be taken on receipt of notice
	No punishment where reasonable cause
437.	Handling Notice Under Section 276B Preceding Launching Prosecution
	*Theoretical Issues*
	Scope of section 276B
	Ingredients of offence punishable under section 276B and implications
	Juridical person cannot be imprisoned, however can be subjected to imposition of fine
	Principal officer and in charge of affairs of company, whether can be proceeded against and punished
	Director or managing director also falls within definition of "Principal Officer"
	Non-initiation of prosecution proceedings in certain cases
	Notice to accused whether condition precedent
	Speaking order
	According of sanction without application of mind by sanctioning authority
	Punishment for second offence under section 276B
	*Practical Solution*
	Notice under section 276B
	Time limit
	Sanction required for prosecution under section 276B
	Action to be taken on receipt of notice
	No punishment where reasonable cause
438.	Handling Notice Under Section 276CC for Launching Prosecution
	*Contentious and Theoretical Issues*
	Nature of offence under section 276CC
	Quantum of punishment
	Relief when available from rigour of section 276CC
	Failure to file return of income
	Effect of belated filing of return
	Initiation of criminal proceeding by CIT where ACIT being the assessing authority
	Guidelines for compounding offence under section 276CC
439.	Handling Notice Under Section 277A for Launching Prosecution
	*Theoretical Issues*
	Prosecution for falsification of accounts
	Tax evasion not to be proved
	Makes or causes to be made--Scope of
	No prosecution under section 277A except with the permission of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner
	Issuance of notice under section 277A
	*Practical Solution*
440.	Filing of Application Under Section 278AB for Granting Immunity from Prosecution
	*Theoretical Issues*
	Application to Principal Commissioner or Commissioner for granting immunity from prosecution
	Granting of immunity is subject to certain conditions
	Withdrawal of immunity
	*Practical Solution*
441.	Guidelines for Compounding of Offences
	*Theoretical Issues*
	Guidelines for Compounding of Offences Under Direct Tax Laws, 2019--F.No. 285/08/2014-IT(Inv.V)/147, dt. 14-6-2019
	Effective date of guidelines
	Compounding Provision
	Compounding is not a matter of right
	Applicability of these Guidelines to prosecutions under IPC
	Classification of Offences
	Eligibility Conditions for Compounding
	Offences normally not to be compounded
	Meaning of terms "occasion" and "first offence"
	Relaxation by Finance Minister
	Relaxation of time
	Authority Competent to Compound an Offence
	Compounding Procedure
	Compounding Charges
	Fees for compounding
	Treatment of related pending penalty proceedings
	*Practical Solutions*
	*Applicability of Related Guidelines to Offences Under Other Direct Tax Laws*
	Relaxation in time for filing of compounding application
442.	Procedure for Identification and Processing of Cases for Prosecution Under Direct Tax Laws
	Guidelines issued by CBDT
	Prosecution is a criminal proceeding
	For the purposes of this Circular, the constitution of the Collegium of two CCIT/DGIT rank officers would mean the following
	Prosecutable offences and the approving authority
	Section LXII--Notices, Applications, Approvals, Etc., Under Sections 281 and Beyond
443.	Handling Notice/Application Under Section 281
	*Theoretical Issues*
	Transfer of any asset by assessee when regarded as void
	Transfer of any asset, when not be void
	Validity of permission granted by the assessing officer
	Monetary limits for applicability of section 281
	Meaning of expression "assets" for the purpose of section 281
	Assessing officer empowered to decide as to which of the assets or property of the assessee could be attached
	No adjudicatory machinery is provided under the Act for declaring any charge of transfer void
	Assessing officer cannot pass an order declaring a transaction void under section 281 independent of any judicial proceeding
	Assessing officer cannot summarily reject an application for permission sought under section 281
	Jurisdiction of assessing officer
	Transfer during pendency of proceedings
	Opportunity of being heard
	Validity of notice
	Compulsory acquisition by State Government
	No form of application for taking permission of the assessing officer
	Before cancellation of application, opportunity of being heard is must
	*Practical Solutions*
	Notice under section 281
	Application under section 281
	CBDT Guidelines as to prior permission to transfer of asset or create a charge on the assets--Circular No. 4/2011, dt. 19-7-2011
444.	Handling Notice Under Section 281B for Making Provisional Attachment
	*Theoretical Issues*
	Power of assessing officer to make provisional attachment
	Validity of order of provisional attachment
	Revocation of attachment
	Determination of value of the property provisionally attached
	Period during which order revoking the provisional attachment be made
	Revoking of guarantee furnished by assessee
	Release of guarantee by assessing officer
	Conditions precedent for applicability of section 281B
	No demand outstanding--No attachment possible
	Right of membership cannot be attached
	Attachment where assessment proceedings pending
	Property belonging to third party
	Deemed proceedings for purposes of section 281B
	Period of provisional attachment
	Extension of period of attachment
	No attachment in case stay granted by Tribunal
	Attachment where parent company gives guarantee
	Steps to secure recovery of demand in high demand cases
	*Practical Solution*
	Notice under section 281B
	Authority competent to issue notice
	Action to be taken on receipt of notice
445.	Furnishing of Annual Statement by Non-Resident Having Liaison Office in India
	Non-resident having liaison office in India to file statement containing particulars of its activity
	Form of annual statement
	Verification of annual statement
	Manner of furnishing annual statement
	*Procedural Formalities*
446.	Furnishing of Information or Documents by an Indian Concern in Certain Cases
	*Theoretical Issues*
	Information required to be furnished by an Indian entity, where its share derives its value substantially from the assets located in India
	Information or documents to be furnished under section 285A
	Terminologies defined
	*Practical Solution*
447.	Statement Under Section 285B by Producers of Cinematographic Film
	*Theoretical Issues*
	Statement to be submitted by producers of cinematographic film
	Relevant rule
	Relevant Form
	Time limit
	Required particulars
	Penal consequences
	*Procedural Formalities*
448.	Furnishing of Statement of Financial Transactions
	*Theoretical Issues*
	Who is liable to file statement of financial transaction or reportable account
	Period for which statement to be furnished
	Specified financial transactions--Meaning of
	Defective statement
	Notice to furnish statement
	Correction statement
	Central Government empowered to make rules
	From in which statement of financial transaction be furnished
	Who shall furnish statement and in respect which transaction it shall be furnished
	Aggregation of transactions
	Manner of furnishing return in Form No. 61A
	Time limit for furnishing of statement of financial transaction
	Duty of reporting person
	Verification statement
	Penalty for failure to furnish statement of financial transaction or reportable account [Section 271FA]
	Penalty for furnishing inaccurate statement of financial transaction or reportable account [Section 271FAA]
	*Practical Solution*
	Notice asking for furnishing Specified Financial Transaction (SFT)
	*Procedural Formalities*
	Form for furnishing SFT
	Procedure for registration and submission of Statement of Financial Transactions (SFT) as per section 285BA of Income Tax Act, 1961 read with Rule 114E of Income Tax Rules, 1962
	Procedure for Acceptance of Statement of Financial Transactions from Sub-Registrar Office and Post Offices (SFT) as per section 285BA of Income Tax Act, 1961 r/w Rule 114E of Income Tax Rules, 1962
	Procedure for registration and submission of Statement of Financial Transactions (SFT) as per section 285BA of Income Tax Act, 1961 read with Rule 114E of Income Tax Rules, 1962
449.	Furnishing of Report in Respect of International Group
	Furnishing of report in respect of an international group
	Notice to prescribed income-tax authority
	Inclusions in the report to be furnished in respect of an international group
	Report by a constituent entity of an international group
	No report to be furnished by a constituent entity of an international group
	Prescribed authority may require an entity to produce specified information and document
	When international group is not required to furnish report in respect of international group
	Terminologies defined
	*Procedural Solutions*
	Reporting requirement in respect of international group
	Duty of constituent entity
	Furnishing of report
	Case of entity other than referred to in section 286(2)
450.	Application for Approval to Recognised Provident Fund Under Schedule IV, Part A
	*Theoretical Issues*
	Relevant sections
	Employer--Who is?
	Conditions for recognition
	*Procedural Solutions*
	Application for recognition--Where to be made
	Application--How to be made
	Details to be contained in the application
	Verification of application
	Position of a fund granted recognition or applied for recognition before 31-3-2006
	Date of recognition
451.	Application for Approval to Superannuation Fund Under Schedue IV, Part B
	*Theoretical Issues*
	Relevant section
	Conditions for approval
	*Procedural Solutions*
	Application by whom
	Details to be furnished
	Accompaniments to application
	Approval by whom granted
	Verification
452.	Application for Approval to Gratuity Fund Under Schedule IV, Part C
	*Theoretical Issues*
	Relevant sections
	Conditions for approval
	*Procedural Formalities*
	Application by whom
	Accompaniments to application
	Verification
	Approval by whom
	Section LXIII--Specific Deeds and Drafts
453.	Drafting of Will
454.	Deed of Transfer from Executor of Will to Legatee
455.	Release of Legacy
456.	Release Deed
457.	General Power of Attorney
	General Power of Attorney
458.	CA Certificate and VISA Proceedings
	Need for certificate by Chartered Accountant
	Specimen C.A. Certificate
459.	Gift Specific Draftings
	Declaration for Gift
	Gift of Movable Property to Minor
	Gift of Immovable Property
	Deed of Conditional Gift
	Gift Deed