HIGHLIGHT ON NOTIFICATION REGARDING BLACK MONEY

CENTRAL BOARD OF DIRECT TAXATION – INCOME TAX DEPARTMENT NOTIFIES FORM 6 –TO ENABLES ONLINE DECLARATION OF BLACK MONEY OUTSIDE INDIA

Untitled18AThe Online filing of Form 6 under The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015 has been issued under the menu “e-File” after login. Taxpayers are requested to e-File Form 6 during the compliance window which ends on September 30, 2015.[Refer Notification No. 58/2015 dated 02/07/2015]Form-6 is for Declaration of undisclosed asset located outside India under section 59 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

All Basic Steps for Electronic filing of Form 6 are as under:

  1. Download and Fill Form 6 from Income Tax E-filing Website
  2. Generate xml file of Form 6
  3. Go to and login at https://income tax india e-filing.gov.in/
  4. Under the menu “e-File” select “Upload Form 6 (for undisclosed foreign assets)
  5. Attach xml file of Form 6 and Scanned Documents in pdf

The maximum size of scanned documents should not be more than 50MB

The following scanned documents are required to be attached:

(a) Valuation Report

(b) Separate computation of FMV (if done other than mentioned in Rule 3)

  1. Click on Submit to finish uploading and attaché Digital signature when prompted. DSC is mandatory for all the assesses.
  2. Download/save the acknowledgement as required.

Related Updates:

CBDT Notification 58/2015 Black Money Rules, Valuation and Forms Click Here>>

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at 9555555480

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HIGHLIGHT ON VALIDATION OF TAX RETURNS

Validation of tax-returns for AY 2013-14 & 2014-15 through Electronic Verification Code

Untitled30A(F. No. 225/141/2015/ITA.II- Dated 20-7-2015)

  1. The Central Board of Direct Taxes (‘CBDT’) vide Notification No. 41/2015 dated 15.04.2015 has introduced Electronic Verification Code (‘EVC’) as one of the modes for validation of return of income which are filed electronically on or after 01.04.2015.
  1. In case of returns of income pertaining to Assessment Years 2013-2014 and 2014-2015 filed  electronically (without digital  signature certificate) between 01.04.2014 to 31.03.2015, time-limit for submission of ITR-V to the CPC Bengaluru has already been extended till 31.10.2015 vide Notification No. 1/2015 dated 10.07.2015 issued by the Pr. DGIT (Systems). CBDT.

In order to facilitate the process of validation of such returns, CBDT, in exercise of the powers conferred under sub-section (1) of section 119 of the Income-tax Act. 1961, hereby directs that the taxpayer can validate such returns of income within the said extended time through EVC also.

CBDT releases Java Utility for e-filing Form 6 to declare black money

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (‘Black Money Act’) has been enforced from July 1, 2015.

The Black Money Act provides for 30% tax on the value of undisclosed foreign income or assets and a penalty of three times of tax so computed. It further provides for prosecution up to 10 years in case of willful attempt to evade tax on foreign income or assets held outside India.

However, the Black Money Act allows one-time compliance window for the taxpayers to voluntarily disclose undisclosed foreign income or assets. The declaration can be made by September 30, 2015. Any person availing of benefit of compliance window is required to pay tax at the rate of 30% of value of undisclosed foreign income or asset and a penalty of 100% of tax. Such taxes and penalty are required to be paid by the declaring on or before December 31, 2015.

The Government has notified Form 6 to make declaration of undisclosed foreign income or asset under the compliance window. The taxpayer has an option to file the declaration either manually to CIT, Delhi or e-file it using the digital signature.

Therefore, for the purposes of e-filing of Form 6, the Board has released the Java utility. The taxpayer can now fill up Form 6 by downloading the Java utility from e-filing website.

After filling the relevant information in Form 6 through Java Utility, the taxpayer needs to generate the .xml file and submit it under e-filing option available after login at https://incometaxindiaefiling.gov.in.  Declarant needs to attach relevant scanned documents (i.e., scanned copy of valuation report or FMV computation) in PDF or ZIP format along with XML file. The size of PDF/ZIP documents should not exceed 50MB.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at 9555555480

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UPDATE ON LEVY OF VAT

States not empowered to levy VAT on transfer of immovable property- under normal provisions

Untitled41Recently, on 22.04.2015, P&H High Court in CHD Developers v. State of Haryana & Ors. (TS-147-HC-2015(P&H)-VAT) upholder the levy of VAT on sale of goods in an agreement to sale of flat, and further held that States are not empowered to levy VAT on transfer of immovable property.

Rule 25 of Haryana VAT Rules was sought to be challenged on premise that levy of VAT on value of land was ultra vires the powers of State Legislature. However, Circular No. 259/ST-1 dated February 10, 2014 which provides composition scheme was declared optional and hence no deduction of land is allowed, for the lump sum dealer.

The settled pronouncements of the said case are as under –

  1. Where the agreement is entered into after completion of flat/unit, there would be no element of works contract, hence VAT is not applicable.
  2. Further, in case of developer, the activity of construction undertaken by him would be called as works contract only from the stage he enters into a contract with the flat purchaser. Thus the value addition made to the goods transferred after the agreement is entered, shall only be made chargeable to VAT.
  3. The major conditions for activity to be chargeable under VAT are –
    1. There must be works contract
    2. Goods should be involved in the execution of works contract
    3. Property must be transferred to a third party either as goods or some other form
  1. In case the Developers opt for the deductive method of calculation of VAT, the deduction of labour and like charges (similar to other work contractors as specified in rule 25 of HVAT) is admissible. However, in case of Haryana VAT, provisions for deduction of value of land for the developer are not expressly specified. Hence, the P&H HC, relying on the landmark judgment of Supreme court in the case of M/s Larsen and Toubro v. State of Karnataka {(2013) 46 PHT 269 (SC)} held that State has no power to charge tax on anything except the value of transfer of property in goods and thus deduction of land is permissible in the case of developers. (Reference was also made to affidavit dated 24.4.14 of Shri B.L. Gupta, Additional Excise and Taxation Commissioner, Haryana).
  2. However, in case of non-VAT dealer, i.e. lump sum works contractor, no deduction of value of land is admissible to the developer. Here it is held that since composition method is optional to the dealer, and the same is not a charging provision, no deduction toward value of land can be granted.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at 011-233 433 33/9555555480

 

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UPDATE ON DELHI VAT

Whether importing decorative goods predominantly made by handis classified as Handicrafts– Delhi VAT

27Recently in the case of AME De Verre (P.) Ltd. V Commissioner Trade and Taxes (2015) 57 taxmann.com 147 (Delhi)  it has been held by the Delhi High Court that decorative items imported from Italy, which were predominantly made by hand, are classified as “Handicrafts” under entry no. 128 of Third Schedule of VAT Act and thus chargeable to tax @ 4%.

In the said case, the assessee was engaged in sale of decorative items of glass under the brand name of ‘Badli’ which were manufactured primarily using designs given by craftsmen and statedly involved crystal playing, engraving, polishing, assembling, chiseling and then final product was made, in addition the same was subject to hand polishing, dismantling, pregilding and then finally assembled. Hence, the assessee classified the same as ‘Handicrafts’ and consequently paid tax at the rate of 4%.

However, the Commissioner rejected the assessee’s claim and held that the said items should be categorized as unclassified goods and taxable at the rate of 12.5% under section 4(1)(e). On appeal by the Assessee, the Tribunal also upheld the same.

The assessee further appealed to the Delhi High Court where it was observed that the said items qualify as ‘Handicrafts’ as they fulfill the following characteristics-

  1. It must be predominantly made by hand. It does not matter if some machinery is also used in the process.
  2. Items must be graced with visual appeal in the nature of ornamentation or in work or some similar work lending it an element of artistic improvement. Such ornamentation must be of a substantial nature and not a pretence.

Further, it was noticed that there is nothing contained in VAT Act or rules, or in any other instructions, notification, etc. to require that a commodity in order to be accepted as ‘Handicrafts’ must be one indigenously made, or to put it conversely, not be one imported into India. Hence, the Delhi High Court held that goods sold by the assessee fall in category of ‘Handicrafts’ and consequently attract VAT at 4%.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at 9555555480

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HIGHLIGHT ON MANUAL SCRUTINY

Guidelines for Detailed Manual Scrutiny of Service Tax Returns w.e.f. August 1, 2015

Untitled213The Central Board of Excise and Customs (‘CBEC’) vide Circular No. 113/07/2009-ST dated April 23, 2009 had laid down the procedure for carrying out detailed scrutiny of Service Tax Returns and had circulated a Return Scrutiny Manual for Service tax. However, with the advent of Negative List based comprehensive taxation of services, the CBEC has unveiled the revised guidelines for detailed scrutiny of ST-3 Returns to be followed by the Revenue with effect from August 1, 2015 vide Circular No. 185/4/2015-ST dated June 30, 2015.

In order to put in place a strong ‘return scrutiny’ system, a two part system of return was envisaged- a preliminary scrutiny which would be online covering all the returns; and a detailed manual scrutiny of scrutiny returns, identified on the basis of risk parameters, to be done by the Division/Range offices and should be carried out in the manner outlined below-

  • Preliminary Online Scrutiny .The purpose is to ensure the completeness of the information furnished in the return, arithmetic correctness of the amount computed as tax and its timely payment, timely Submission of the return and identification of non-filers and stop-filers. On the basis of validation checks returns having certain errors are marked for Review and Correction (Rnc).
  • Detailed Manual Scrutiny. The purpose is to ensure the correctness of the assessment made by the assesse and this includes checking the taxability of the service, the correctness of the value of taxable services. In doing this Proper Officer must rely mainly on assessment related documents like agreements/contracts and invoices.
  • Selection of Returns for Detailed Scrutiny Core focus would be in respect of such assesses whose total tax paid (Cash + CENVAT) for the FY 2014-15 is below Rs 50 Lakhs. Each Commissionerate has to select equal number of assesses for carrying out returns scrutiny from each of the these three total tax paid bands (Cash + CENVAT) viz. Rs 0 to 10 lakhs, Rs 10-25 lakhs, Rs 25-50 lakhs for the financial year 2014-15.
    However, the assessees who have been selected for audit or have been audited recently (in the past three years) should not be taken up for detailed scrutiny. However, the Chief Commissioner, may direct detailed manual scrutiny of an assesses return who has paid service tax (cash + CENVAT) more than Rs 50 lakhs in certain specific cases. In no event should as assesse be subjected to both audit and detailed manual scrutiny.
  • Methodology detailed scrutiny of returns must be conducted by the Service Tax Range headed by the Superintendent and assisted by a complement of inspectors. However, the Divisional DC/AC shall be responsible for the overall supervision of this business process in respect of his/her division. Before return scrutiny is initiated, the assesse must be given prior intimation of at least fifteen days and the purpose of the exercise must be spelt out in an intimation letter.  To begin with, the returns for the financial year 2013-14 should be taken up for detailed scrutiny. One of the important objective of return scrutiny is to ensure validation of the information furnished in the self-assessed ST-3 return. The Validation exercise would require reconciling information furnished in the ST-3 return with ITR Form Nos. 4, 5, 6 and 26AA and any third party information made available.

    Checklist for achieving the stated objectives, the checks have been categorized as follows:-

  • Reconciliation for validation of the information furnished in the ST-3 return;

  • Taxability in respect of services which may have escaped assessment;

  • Classification (for the purposes of due availment of abatement/ exemption benefit);

  • Valuation; and

CENVAT Credit availment / utilization.

In normal circumstances Scrutiny process of an assessee should be completed in a period not exceeding three months and in no event should an assessee be subjected to both audit and detailed manual scrutiny;

Even after the introduction of GST, it may be appreciated that the basic principles of scrutiny of returns and reconciliation of records would remain the same.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at  9555555480

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HIGHLIGHT OF LAST DATE OF FILING RETURN UNDER COMPANIES ACT, 2013

Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, 2013

9MCA has extended the last date of filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) upto 31/10/2015, as electronic versions of Forms AOC-4, AOC-4 XBRL and MGT-7 shall be made available for filing latest by 30th September 2015.

In addition, AOC-4 CFS will be made available latest by October 2015, hence, a company, which is required to file its Consolidated Financial Statement, would be able to do so without any additional fees upto 30/11/2015.

The Circular is as below

General Circular No. 10 / 2015

F.No. 01/34/2013 CL-V Government of India Ministry of Corporate Affairs
5th Floor, TV Wing, Shastri Bhawan,
Dr. Rajendra Prasad Road, New Delhi-1
Dated: 13/072015
To
All Regional Directors, All Registrar of Companies, All Stakeholders.
Subject: Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, 2013-reg.

Sir,

  1. This Ministry has clarified vide General Circular 8/2014 dated 04/04/2014 that provisions of the Companies Act, 2013 relating to financial statements, auditors report and board’s report shall apply in respect of financial years commencing on or after 1st April, 2014. Form AOC-4 or Form AOC-4 XBRL (Format of filing of financial statement) shall, as applicable, have to be used for filing of such statement for financial years commencing on or after 1st April, 2014. Attention is also invited to this Ministry’s General Circular 22/2014 dated 25/06/2014 wherein it has been clarified that MGT-7 (Form of Annual Return) shall apply to annual returns in respect of financial years ending after 1st April, 2014.
  2. The electronic versions of Forms AOC-4, AOC-4 XBRL and MGT-7 are being developed and shall be made available for electronic filing latest by 30th September 2015. In addition, a separate form for filing of Consolidated Financial Statement (CFS) with the nomenclature AOC-
  3. CFS will be made available latest by October 2015. MGT-7 has been notified while AOC-4, AOC-4 XBRL and AOC-4 CFS will be notified shortly.
  4. In view of this, it has been decided to relax the additional fee payable on Forms AOC-4, AOC-
  5. 5. XBRL and Form MGT-7 upto 31/10/2015. Further, a company which is not required to file its financial statement in XBRL format and is required to file its CFS would be able to do so in the separate form for CFS without any additional fees upto 30/11/2015.
  6. This issues with the approval of the competent authority.

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OPTION TO USE OF DIGITALLY SIGNED INVOICES/RECORDS IN CENTRAL EXCISE AND SERVICE TAX

OPTION TO USE OF DIGITALLY SIGNED INVOICES/RECORDS IN CENTRAL EXCISE AND SERVICE TAX

Untitled135New Finance Budget, 2015 has provided facility to issue digitally signed invoices by inserting Rule 4(C) in Service Tax Rules, 1994 along with the option for maintenance of records in electronic form and their authentication by means of digital signatures. However, conditions for issuing digital signed invoices and option of maintaining of records in electronic form was not in the line till now.

The neoteric, Notification No. 18/2015- Central Excise (N.T.), dated 6 July, 2015, in pursuance of sub-rule (2) of Rule 4(C) of the Service Tax Rules, 1994 made under sub-section (1) and sub-section (2) of Section 94 of the Finance Act, 1994, now specifies conditions, safeguard and procedures for issuing of invoices, preserving records in electronic form and authentication of records and invoices by digital signatures.

As per the notification, for issuing digital signature invoices and maintaining records in electronic form the following condition shall be complied, namely;-

  • Every assesse proposing to use digital signature shall use Class 2 or Class 3 Digital Signature Certificate duly issued by the Certifying Authority in India.
  • Every assesse proposing to use digital signatures shall intimate specified details to the Jurisdictional Deputy Commissioner of Central Excise.
  • Every assesse already using digital signature shall intimate to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise within 15 days of issue of this notification.
  • Every assesse who opts to maintain records in electronic form and who has more than one factory or service tax registration shall maintain separate electronic records for each factory of each service tax registration

Every assesse who opts to maintain records in electronic form shall ensure that appropriate backup of records in electronic form is maintained and preserved for a period of 5 years immediately after the financial year to which such records pertain.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at 9555555480

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CORPORATE HIGHLIGHT FOR LAST WEEK OF JULY

Best judgment assessment can only be used to quantify the value of service rendered

Untitled213In a recent case of M/s. Shubham Electricals versus CST & ST, Rohtak, CESTAT of New Delhi (2015(6) TMI 786)held that Section 72 of The Finance Act, 1994 which connotes the implication of Best Judgement assessment, can only be used to determine the quantum of services rendered. There cannot be best judgment assessment regarding the specific service provided. There can be no best judgment assessment, for instance as to whether the tax liability is for income tax, sales tax, excise duty, customs duty, service tax or professional tax. A conclusion as to the taxable event and the liability to tax under the appropriate fiscal legislation authorising the levy and collection of such tax is a matter for determination with precision and clarity and not by a process of guess-work or speculation.

In the cited case, the SCN claimed that the appellant had kept the facts undisclosed in so much as the service tax amounting Rs. 1,53,14,782/- for the period 2006-2007 to 2010-2011, adding on with the interest and penalty under Section 75, 77 and 78. Penalty under section 76 was dropped on account of mutually exclusive nature of penalty u/s 76 and 78. Further, the true nature of the service could not be enumerated due to lack of facts as per the revenue. In such case, BJA was applied exaggerating the service tax demand as stated supra.

Appellant had provided copies of 20 work orders executed in relation to CWG Projects. From the description of the works officers could have classified the several works into the appropriate taxable service which may appropriately govern rendition of these services.

Hon’ble CESTAT observed that the disinclination to employ the ample investigatory powers conferred by the Act is illustrative of gross Departmental failure and cannot afford justification for passing an incoherent and vague adjudication order. The failure to gather relevant facts for issuing a proper show cause notice cannot provide justification for a vague and incoherent show cause notice which has resulted in a serious transgression of the due process of law. Hence, BJA in this case is not tenable.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at 9555555480

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STATUTORY DATES FOR THE MONTH OF JUNE’ 2015

STATUTORY DATES FOR THE MONTH OF JUNE’ 2015

Untitled22

05-06-2015 Service Tax
– Service Tax Payment by Companies for May
Central Excise
– Payment of Excise Duty for all Assessees (other than SSI Units) for May.( if Excise Duty / Service Tax paid electronically through internet banking, the date is to be reckoned as 6th instead of 5th.)
07-06-2015 Income Tax
– TDS Payment for May
Rajastan VAT
– Tax Payment for the month of May (2nd Fortnight).
10-06-2015 Central Excise
– Monthly Return in Form ER-1 (Ann-12) for other than units availing SSI exemption for May
– Monthly Return in Form ER-2 (Ann-13) by 100% EOUs for May
– Montly information relating to principal units in Form ER-6 (Ann – 13AC) for specified assessees for July
– Exports – Procurement of specified goods from EOU for use in manufacture of Export goods in Form Ann-17B for DTA units, procuring specified goods from EOU for manufacture of export goods
– Proof of Exports in form Ann.-19, once in a month for all exporters, exporting goods under Bond
– Export detains in Form Ann.-20, for Manufacturing following simplified export procedure.
– Removal of excisable goods for specified use at concessional rate of duty in terms of Rules described in Col. 4.
Chattisgarh VAT
-Chattisgarh VAT Monthly Return for May.
Madhya Pradesh VAT
-Tax Payment for the month of May.
15-06-2015 Providend Fund
– PF Payment for May
Income Tax
– Advance Income Tax – Companies.
20-06-2015 UPVAT
-UPVAT Monthly return and tax payment for May.
Rajastan VAT
– Tax Payment for the month of June(1st Fortnight).
21-06-2015 ESIC
– ESIC Payment for May.
25-06-2015 Uttarakhand VAT
-Uttarakhand VAT Monthly return and tax payment for May.
Bihar VAT
-Tax Payment for the month of May
Jharkhand VAT
-Tax Payment for the month of May
30-06-2015 Profession Tax
– Profession Tax (Enrollment) – Payment for Financial Year 2015/16.
– Monthly Return (covering salary paid for the preceding month) (Tax Rs. 50,000 or more)
Central Excise
– Particulars relating to clearances, electricity load etc. in Form Ann. – 4, exceeding the limit of Rs. 90 lakhs of exempted clearances for Small scale units availing exemption and whose turnover exceeds or has exceeded Rs. 90 lakhs in a financial year, as the case may be.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at 9555555480

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CORPORATE HIGHLIGHT

Provisions of section 292BB do not cure virus of non-issuance of notice under section 143(2)

Untitled5ASection 143, read with section 292BB, of the Income-tax Act, 1961 – Assessment – Issue of notice -Service of notice [2015] ITAT GUWAHATI – Rajib Saikia v. Assistant Commissioner of Income-tax, Circle-2, Guwahati

FACTS

An action under section 143(2) was carried out in the case of the assessee. Thereupon, the Assessing Officer completed the assessment under section 153A.

In appellate proceedings, the assessee raised an additional ground that no notice under section 143(2) was issued to him.

The Commissioner (Appeals) found that acknowledgement slip of notice bore signature of the Authorised Representative (AR) of the assessee but, he denied to have any authority to receive notice on behalf of the assessee. He also found that the notice did not bear the address or PAN of the addressee. Therefore, he held that service of the notice was highly doubtful.

However, the Commissioner (Appeals) finding that the assessee had participated in assessment proceedings, opined that assessment made by the Assessing Officer was valid in terms of section. 292BB even if there was non-service of notice as per the provisions of the Act.

On second appeal, it was Held

Service of notice is more important than issuing it. Burden is always on the Assessing Officer to prove with cogent evidence that not only notice was issued but it was also served upon the assessee. The First Appellate Authority (FAA) has held that the service of notice was highly doubtful. At the time of hearing the revenue could not place any evidence of service of notice. The FAA has mentioned that the notice did not bear the PAN or the address of the assessee.

Considering these peculiar facts, it is opined that there is no proof of service of notice allegedly issued by the Assessing Officer under section 143(2). In these circumstances it is held that the order passed by the Assessing Officer for the year under consideration is invalid order and not sustainable in the eyes of law.

As far as the provisions of section 292BB are concerned, same do not cure the virus of non-issuance of the notice under section 143(2) especially when the assessee has raised said objection before completion of assessment proceedings.

Further for the assessment year 2002-03 to 2007-08 the FAA has held that in absence of service of notice issued under section 143(2) the order passed by the Assessing Officer were not maintainable. In the appellate proceedings, the Tribunal upheld the order of the FAA and held that assessment were invalid.

In view of aforesaid, appeal filed by the assessee stands allowed.

Provisions of section 292BB do not cure virus of non-issuance of notice under section 143(2)

Section 143, read with section 292BB, of the Income-tax Act, 1961 – Assessment – Issue of notice -Service of notice [2015] ITAT GUWAHATI – Rajib Saikia v. Assistant Commissioner of Income-tax, Circle-2, Guwahati

FACTS

An action under section 143(2) was carried out in the case of the assessee. Thereupon, the Assessing Officer completed the assessment under section 153A.

In appellate proceedings, the assessee raised an additional ground that no notice under section 143(2) was issued to him.

The Commissioner (Appeals) found that acknowledgement slip of notice bore signature of the Authorised Representative (AR) of the assessee but, he denied to have any authority to receive notice on behalf of the assessee. He also found that the notice did not bear the address or PAN of the addressee. Therefore, he held that service of the notice was highly doubtful.

However, the Commissioner (Appeals) finding that the assessee had participated in assessment proceedings, opined that assessment made by the Assessing Officer was valid in terms of section. 292BB even if there was non-service of notice as per the provisions of the Act.

On second appeal, it was Held

Service of notice is more important than issuing it. Burden is always on the Assessing Officer to prove with cogent evidence that not only notice was issued but it was also served upon the assessee. The First Appellate Authority (FAA) has held that the service of notice was highly doubtful. At the time of hearing the revenue could not place any evidence of service of notice. The FAA has mentioned that the notice did not bear the PAN or the address of the assessee.

Considering these peculiar facts, it is opined that there is no proof of service of notice allegedly issued by the Assessing Officer under section 143(2). In these circumstances it is held that the order passed by the Assessing Officer for the year under consideration is invalid order and not sustainable in the eyes of law.

As far as the provisions of section 292BB are concerned, same do not cure the virus of non-issuance of the notice under section 143(2) especially when the assessee has raised said objection before completion of assessment proceedings.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@carajput.com or call at 9555555480

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