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21.10.2013 - Voice of CA presents - Updates
Monday, October 21, 2013

  I.  Today's Headlines   

1.    Rate of exchange of conversion of each of the foreign currency with effect from October 18, 2013 - 105/2013 - Dated 17-10-2013 - Customs - Non Tariff. (Click here to view details)

2.    SEBI allows Mutual funds to hold gold certificates in physical form. (Click here to view details)
 
3.    New RTGS system to improve financial market efficiency. (Click here for details)
 
4.    Rupee may strengthen on back of dollar inflows. (Click here for details)
 
5.    Inflation to ease; RBI likely to cut MSF rate: Assocham. (Click here for details)
 
6.    Forex reserves rise to $279 bn for week ending Oct 11. (Click here for details)
 

 

II.  Direct Tax Case laws:

1. ITO Versus Shri Rupkumar Balchand Rohra, I .T.A. No.4999/MUM/2010, Date of Order 10/10/2013, ITAT – Mumbai.

Issuance of notice u/s 148 after approval from Commissioner of Income Tax instead of Joint Commissioner of Income Tax which is authorized to grant approval under the provisions of section 151 held to be non-sustainable in law.

Held Yes

There remains no dispute on the fact that re-assessment proceedings have been initiated on the approval received by the AO from Commissioner of Income Tax and the said approval was not given of Additional Commissioner / Joint Commissioner of Income Tax. There is also no dispute that the approval has been issued after a period of four years from the end of the relevant assessment year. If these facts are undisputed, then in accordance with aforementioned decision of Hon’ble Jurisdictional High Court it has to be held that the reassessment proceedings based on an approval granted by Commissioner of Income Tax instead of Additional Commissioner / Joint Commissioner of Income Tax are required to be held to be invalid.
 
 
2. Shri Amarlal Bajaj versus ACIT, ITA No. 611/Mum/2004, Date of Order : 24.07.2013, ITAT-Mumbai
 
Merely writing “approved” in the sanction form without recording satisfaction renders the reopening of assessment void u/s 148
 
S. 147 and 148 are a charter to the Revenue to reopen earlier assessments. They are sword for the Revenue and shield for the assessee. S. 151 guards that the sword of S. 147 may not be used unless a superior officer is satisfied that the AO has good and adequate reasons to invoke the provisions of S. 147. The superior authority has to examine the reasons, material or grounds and to judge whether they are sufficient and adequate to the formation of the necessary belief on the part of the assessing officer. If, after applying his mind and also recording his reasons, howsoever briefly, the Commissioner is of the opinion that the AO’s belief is well reasoned and bona fide, he is to accord his sanction to the issue of notice u/s 148 of the Act. In the instant case, we find from the perusal of the order sheet which is on record, the Commissioner has simply put “approved” and signed the report thereby giving sanction to the AO. Nowhere the Commissioner has recorded a satisfaction note not even in brief. Therefore, it cannot be said that the Commissioner has accorded sanction after applying his mind and after recording his satisfaction 
 

 Golden Rules:

"Time is free, but it's priceless. You can't own it, but you can use it. You can't keep it, but you can spend it. Once you've lost it, you can never get it back"

 

  Thanks & Regards

Team

Voice of CA 

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