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June 2019

Direct Tax Amicus: April 2019


Prosecution under Section 276C of Income-tax Act, 1961 – An Overview
by Ravi Sawana


Section 276C of the Income Tax Act provides for prosecution where an assessee has wilfully attempted to evade the chargeability or imposition of tax, penalty or interest or has wilfully attempted to evade the payment of tax, penalty or interest. Before a prosecution can be launched, it is necessary to show that that act of assessee was wilful as well as to evade the tax, interest or penalty. Thus, the law mandates the intentional escapement of chargeability or imposition of tax, etc., or non-payment of taxes due. The author of article in this issue of Direct Tax Amicus, after deliberating upon interpretation of provisions of the said section, hence, is of the view that a bona fide claim or financial distress to pay the taxes should not be covered by the rigours of Section 276C…

Circular

  • Non-quoting of Aadhar Number in return filed prior to 1-4-2019: CBDT clarifies

Ratio decidendi

  • Liability for purchase transaction not covered under ‘sum found credited’ for purpose of Section 68 (cash credit) – ITAT Kolkata
  • Definition of ‘substantially financed’ inserted in Section 10(23C) is not retrospective – Bombay High Court
  • Deduction under Section 80P allowable to a credit cooperative society even if loans are given to associate members – Madras High Court
  • TPO can determine ALP of ‘specified domestic transactions’ only if the transaction is referred to him by AO – Bombay High Court
  • Tax to be deducted on salary paid to missionaries and nuns surrendered to religious institutions: Income not diverted at source – Madras High Court

April, 2019/Issue-55 April, 2019/Issue-55

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