Categories: Direct TaxIncome Tax

CORPORATE AND INDUSTRY WATCH

INTEREST WOULD BE ENTITLED BY ASSESSEE IF EXCESS SELF-ASSESSMENT TAX PAID EVEN REFUND

The assessee would be entitled to interest under section 244A(1)(b) on amount of refund which was deposited by it by way of self-assessment tax under section 140A.

Section 244A, read with sections 140A and 154, of the Income-tax Act, 1961 – Refunds – Interest on Self-assessment tax[2015] 57 taxman.com 283 -HIGH COURT OF PUNJAB AND HARYANA -CIT v. Punjab Chemical & Crop Protection Ltd:-

Tax deducted at source, advance tax, and also tax paid by way of self-assessment, after its adjustment against tax liability of assessee on a regular assessment, loses its original character and becomes tax paid in pursuance of liability.

Therefore, it could not be held that the assessee was only entitled to interest on tax deducted at source or advance tax but not on self-assessment tax paid under section 140A which was found to be paid in excess.

Declaration of additional income pursuant to survey doesn’t invite penalty in absence of any concealment of facts:-

Where assessee, consequent to survey, declared additional income which was accepted by Assessing Officer, imposition of penalty under section 271(1)(c) was not justified.

Section 271(1)(c), read with section 133A, of the Income-tax Act, 1961 – Penalty for concealment of income -declaration of income in Survey[2015] 57 taxman.com 25 – ITAT MUMBAI -Vipul Life Sciences Ltd. v. DCIT:-

Consequent to survey, assessee offered additional amount and included it in its return in response to notice under section 148.

There being difference in amount as declared in original return and as filed in response to notice under section 148.

Assessing Officer initiated penalty proceedings and levied penalty.

Fact that assessee had made purchases and recorded them in its books as well as stock books had not been disputed by Assessing Officer.

It was held that since All relevant facts, material to computation of total income were duly furnished by assessee and no deficiencies in furnishing of such facts were pointed out by revenue authorities.

therefore there could be no question of treating assessee as having concealed particulars of income or furnished inaccurate particulars of income and revenue authorities erred in imposing penalty under section 271(1)(c) on surrendered income.

Words & Phrases: Term ‘concealment of income’ as occurring in section 271(1)(c) of the Income-tax Act, 1961.

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Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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