Implications Arising Out of New Format of Financial Statements for Non-Corporate Entities

Indusind Bank – Strict Action Required To Eliminate Trust Deficit

From Published Accounts

Allied Laws

Part A | Company Law

Gift Or Will Or Settlement – What’s The Difference?

High Value Debt Listed Entities – Corporate Governance Reforms

Important Amendments by The Finance Act, 2025 -1.0 Charitable Trusts

Important Amendments by The Finance Act, 2025 – 2.0 Block Assessment in Search Cases

Section 194T – When Taxman Becomes A Silent Partner

Important Amendments by The Finance Act, 2025- 3.0 TDS/TCS, Transfer Pricing and Other Important Amendments (The Budget That Whispered Instead Of Roared)

Glimpses of Supreme Court Rulings

Appeal to Appellate Tribunal — Powers of Appellate Tribunal — Power to rectify mistakes in its order — Failure to follow law laid down by jurisdictional High Court — Mistake to be rectified — Matter remanded to Tribunal: Precedent — Decision of High Court — Binding on all income-tax authorities under its jurisdiction:

Assessment — Faceless assessment — Limitation — Date of commencement of limitation period — Reference to DRP — Directions of DRP uploaded on 31st January, 2022 in income-tax business application portal visible and accessible by AO — Intimation of order of DRP received by AO on 3rd February, 2022 and assessment completed on 22nd March, 2022 — Held, assessment order barred by limitation:

Reassessment — Faceless assessment — Notice — New procedure — Effect of provisions of s. 151A and notification dated 29th March, 2022 issued by Central Government — Notice issued by jurisdictional AO invalid:

Reassessment—Scope of jurisdiction of AO— Notice — Reasons recorded — Grounds must be recorded before issue of notice — AO is not entitled to record additional reasons thereafter —Re-assessment based on other grounds recorded after issue of notice not valid — Order and notice quashed: Re-assessment — Applicability of Explanation 3 to section 147 — Explanation applied only where power to re-assess validly invoked:

Reassessment — Condition precedent — Reason to believe that income has escaped assessment — Delay in submitting Form 10 for accumulation of income — Not a ground for re-assessment. Charitable purpose — Requirement of digital submission of Form 10 for accumulation of income — Board Circular acknowledging difficulties of assessee’s in uploading form — Failure to file in time — No dispute as to genuineness of claim — Re-assessment not justified. Charitable purpose — Requirement of digital submission of Form 10 for accumulation of income — Matter of procedure Failure to file in time — No dispute as to genuineness of claim —Re-assessment not justified

Refund — Effect of section 240 — Refund consequent on appellate order — Refund should be granted without application for it. Interest on refund — Effect of section 244 — Deduction of tax at source — Tax deducted at source and deposited has to be treated as tax duly paid — Such amount be taken into consideration in computing interest on refund — Interest payable from first day of April of relevant Assessment Year to the date on which refund is ultimately granted:

Search and seizure — Assessment of third person — Mandatory condition u/s. 158BD — Initiation of proceedings by assessee’s AO without satisfaction note from searched person’s AO — Failure to follow mandatory procedure — High Court held that initiation of proceedings without jurisdiction:

Section 143(3) : Notice and Assessment order – Non-existing entity – fact of merger was intimated to the officer, prior to the assessment order – Order bad in law:

Section 36(1)(vii): Advances written off – Allowable: Section 10B – Deduction – Site Transfer Income : Tribunal last fact-finding authority ought to have given independent finding while reversing decision of lower authorities :

Sec 115JB r.w.s. 2(26): Banks constituted as ‘corresponding new banks’ and not registered under Companies Act, 2013 would not fall under the provisions of section 115JB and, therefore, tax on book profits (MAT) would not be applicable to such banks.

Sec 69A r.w.s. 115BBE: Assessing Officer was not correct in invoking provisions of section 69A and section 115BBE, since assessee had recorded cash deposits of ₹10.75 lakhs during demonetization period in his books of account and source of cash deposits was also maintained by assessee.

S.56–Where the assessee received a new flat in lieu of old flat surrendered under a redevelopment agreement, the transaction would not be regarded as receipt of immovable property for inadequate consideration for the purpose of section 56(2)(x).

S. 56–Gift received by step-brother from his step-sister is exempt under section 56(2) since the term “relative” includes brother and sister by way of affinity.

Ss. 269SS, 271D– Where the loan sanctioned to the assessee was directly disbursed to its vendor by NBFC and the assesseerecognised the liability as a loan through journal entry, such transaction does not contravene section 269SS since the provision does not extend to cases where a debt or liability arises merely due to book entries.

Article 13 of India-Ireland DTAA –Right entitlement to equity shares cannot be equated with shares – Under Article 13(6) of India-Ireland DTAA, taxing right in respect thereof vests with Resident State.

Testing Times Ahead

From The President

Issue/ Service & Communication in Digital Era

Goods And Services Tax

Recent Developments in GST

बुद्धिनाशात् प्रणश्यति !

A Series of Articles on NRIs – Tax and FEMA Issues

Letter to The Editor

Perception

Miscellanea

Regulatory Referencer

Learning Events at BCAS

Tech Mantra

Tribute to Shri Haren Bhalchandra Jokhakar, Past President of the Society