sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 Here are other documents you need to file online ITR Got your Form-16 for FY18?
 10 must have documents to file your tax return
 Know all about how to file ITR FY 2017-18
 Government extends sale of pre-GST goods with stickers of revised price till July 31
 All 7 ITR forms for assessment year 2018-19 activated for e-filing: Income Tax Department
 Check if new salary structure is income tax efficient
 GST refund drive extended till June 16
 5 income tax returns filing mistakes you must avoid
 Your complete guide to file income tax return
 Input Tax Credit refund drive till June 14
 File Your Income Tax Return for FY 2017-18 Immediately, Know Why

'I-T men can't change their tax assessment'
September, 02nd 2008

Tax payers need not pay more if the income-tax officer changes his opinion on their income and asks for more taxes, according to a recent order passed by the Income Tax Appellate Tribunal (ITAT), Mumbai.

The ITATs order was on an appeal filed by Mumbai-based Sudarshan Securities and serves as a reminder to assessing officers that tax cannot be levied at the whims and fancies of tax officers. Sudarshan Securities was taxed 30 per cent of the book profit under Minimum Alternate Tax (MAT). The assessing officer, while passing the order for 1997-98, concluded that the capital gain should be taxed at a concessional rate of 21.5 per cent and the balance at 43 per cent.

Later, the assessing officer changed his opinion and held that the entire book profit should be taxed at 43 per cent. The Commissioner (A) also took the same view, citing an amendment in 1989 to the Income Tax Act , which gave it the power to reopen such cases.

Then, Sudarshan Securities, represented by Jignesh R Shah, moved the ITAT. The tribunal ruled against such changes in opinion, which put additional tax burden on the taxpayer. Mr Shah argued that section 147 of the Income-tax Act is not a weapon in the hands of the assessing officers to use it whenever they feel like changing his opinion and views.

The ITAT accepted Mr Shahs argument and quashed the order of the assessment officer. The Income-tax laws give wide powers to assessing officers for reopening a case if they feel that some income has escaped the tax net. But the department cannot reopen an assessment already made, if the officer has merely changed his opinion after reappraising the very same facts which were available when the original assessment was made, too.

In 1989, amendments were introduced to section 147 of the Income-tax Act, widening the power of the assessing officer to reopen cases, if there is enough ground to suggest that income had escaped the tax net. Even there, reopening a case on the basis of a change of opinion on existing facts are not permitted.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions