Tag: Taxation
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Supreme Court on Enlarged Scope of Leniency for Mistakes in Filing Income Tax Returns
[Amar Tandon is a IV year student and Mansi Mishra a III year student at the National Law Institute University, Bhopal] In Rajasthan State Electricity Board v. Dy. Commissioner of Income Tax (decided on 19 March 2020), the Supreme Court set a precedent for expanding the scope of leniency under section 143(1-A) of the Income…
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Vivad se Vishwas Scheme: Will the Tax Payer Express Trust?
[Venkat Maithreya is a Counsel at the Telangana High Court] The Vivad Se Vishwas Scheme (now the Direct Tax Vivad Se Vishwas Act, 2020) (the “Scheme”) was introduced by the Finance Minister, Ms. Nirmala Sitaraman, in her Budget speech for the year 2020-21 in the Lok Sabha on 1 February 2020. The Scheme seems to…
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Budget 2020: What’s there for the Real Estate Sector?
[Akash Kumar Prasad is a fourth-year student at NALSAR University of Law, Hyderabad] The Union Budget 2020-21 was presented on February 1, 2020 by the Finance Minister Nirmala Sitharaman. Amidst sharp decline in the economy, the Union Budget was awaited with great expectations to foster growth in the real estate sector. However, with no major…
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Delhi ITAT Ruling on Liaison Office and Permanent Establishment
[Dibya Prakash Behera is a 5th Year BA. LLB (Corporate Law Hons.) student at National University of Study and Research in Law, Ranchi] In September this year, the Income Tax Appellate Tribunal, Delhi delivered a landmark judgement in Hitachi High Technologies Ltd v. The Dy. Commissioner of Income Tax. The Tribunal held that the liaison…
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Expenses Incurred by the Assessee: Penal or Compensatory in Nature?
[Amrit Singh is a fourth-year B.A., LL.B. (Hons.) student at Institute of Law, Nirma University] Section 37 of the Income Tax Act, 1961 states that any expenditure laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed for deduction. However, this provision excludes the nature of expenditure…
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Reassessment Proceedings under the Income Tax Act: Assessing Officer’s “Reason to Believe”
[Amrit Singh is a fourth-year B.A., LL.B. (Hons.) student at Institute of Law, Nirma University] According to section 2(9) of the Income Tax Act 1961, the term “assessment year” means the period of twelve months commencing on the 1st day of April every year. Reassessment means reopening the already completed assessment on fulfilment of certain…
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Taxation as a Form of Regulating Cryptocurrencies In India
[Samarth Chaudhari is a final year LL.B. student at Jindal Global Law School, Sonipat] Cryptocurrencies, derived from the innovation of blockchain technology, can function as a reliable online payment method with several benefits.[1] However, the Reserve Bank of India (RBI) has unambiguously prohibited all financial institutions regulated by it from dealing in cryptocurrencies and its…
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Income Tax Act: Appeals from the Dispute Resolution Panel
[Nishant Pande is a 4th year BA LLB (Hons.) student at NALSAR University of Law] The Dispute Resolution Panel (‘DRP’) is one of several bodies established in under the Income Tax Act, 1961 (the ‘IT Act’) to allow settlement of disputes with the help of an alternative dispute resolution (‘ADR’) mechanism. Section 253(2A) of the Act…
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The ‘AMP Expenses’ Dilemma in Transfer Pricing: Can the Supreme Court Clear the Dust?
[Shannon Khalkho is a IV year B.A. LL.B. (Hons.) student at the National Law School of India University, Bangalore] Introduction The issue of advertisement, marketing and promotion (AMP) expenses incurred by a domestic entity for its foreign associate entity (foreign AE) has been mired in controversy since its entry into the realm of transfer pricing, essentially…