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19/04/2020 - Voice of CA presents - Useful Updates
Sunday, April 19, 2020

  I. Headlines Today:   

  1. Govt. tweaks FDI norms; bars automatic investment in Indian Cos. from neighbouring countries  (Click for detail)
  2. CBDT releases Income-tax refunds worth Rs 5,204 crore to small business in last 10 days  (Click for detail)
  3. IBBI amends liquidation process norms; excludes period of lockdown from computation of timelines under IBC  (Click for detail)
  4. Date of Filing Electronic Challan Cum Return (ECR) for Wage Month March, 2020 Extended Up to 15.05.2020 from 15.04.2020  (Click for detail)
  5. RBI excludes period from Mar 01 to May 31 from calculation of 30 days review period on resolution of Stressed Assets  (Click for detail)
  6. RBI extends guidelines on deferment of date of commencement of commercial operations for NBFCs  (Click for detail)
  7. RBI directs banks not to declare dividend from profits relating to F.Y. ended March 31, 2020  (Click for detail)

II. Useful Presentation:

1.  Penalties
      under the Income Tax Act, 1961

        (Please click here)  

  [ Contribution by CA. Sanjay K. Agarwal, Founder-Voice of CA and contributor is available at eMail-id: ]


III. Direct Taxes Case Law: 

1.  Aricent Technologies Holdings Ltd. Vs. ACIT, Appeal No. 5708/Del/2019, Date of Judgement: 23.12.2019, ITAT - Delhi

Whether assessee would be entitled to claim credit of tax deducted by deductor at source out but failed to deposit the TDS with government?

Held: Yes

Assessee filed the complete details including name of the parties, amount paid by the parties and tax deducted at source and TDS claimed of Rs.18.79 crores were furnished alongwith the return of income. However, Ld. AO denied claim of assessee on the ground that some of deuctor failed to deposit the tax with government.

Hon’ble ITAT held that “that there is liability upon the person making the payments, to deduct tax at source in line with the provisions of Chapter XVII of the Act. Once such tax had been deducted then the deductor is liable to deposit the same into the credit of the Central Government. Such amount which is withheld by the deductor out of the amount due to the deductee i.e. person to whom the payments are made, then the said deduction shall be treated as payment of tax on behalf of the person from whom such deductions was made, as per the provisions of section 199(1) of the Act. Further there are provisions under the Act dealing with the recovery of tax at source from the person who have withheld the same. In terms of section 205 of the Act, the assessee/deductee cannot be called upon to pay tax, to the extent to which tax had been deducted from the payments due. Consequently, it follows that credit for such tax deducted at source, which is deducted from the account of the deductee, by the deductor, is to be allowed as taxes paid in the hands of the deductee, irrespective of the fact whether the same has been deposited by the deductor to the credit of the Central Government or not. The deductee in such circumstances cannot be denied credit of tax deducted at source on its behalf.

Judgement Followed: Pushkar Prabhat Chandra Jain vs. Union of India [2019] 103 106, High Court of Bombay

(Please click here for judgment)


Golden Rules:

  "Success has only one formula that is
stop thinking in terms of limitations
and start thinking in terms of possibilities"


Thanks & Regards


Voice of CA 

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