Forensic Accounting & Investigation In Healthcare Industry – Challenges & Opportunities

From Published Accounts

Presentation and Disclosure in Financial Statements

Allied Laws

Part A | Company Law

Banning Of Unregulated Lending Activities

Reshaping Of the Prohibition of Insider Trading (PIT) Regulations, 2015

Whether Obtaining Prior Approval For Reopening Of Assessment Has Become An Empty Ritual?

Merger of Intimation under Section 143(1) With Subsequent Assessment Order under Section 143(3)

Glimpses of Supreme Court Rulings

Assessment — Faceless assessment — Intimation u/s. 143 — Procedure — Corrections to returns must be intimated to assessee — Reply by assessee must be considered.

Deduction of tax at source — Self Assessment Tax — Not required where tax deducted at source on payment — Tax deducted at source from amount received by the Assessee — Assessee entitled to benefit u/s. 205 — Assessee need not produce Form 16A.

Re-assessment — Notice after four years — Advance Ruling — Effect of — Binding only on Assessee and AO in relation to transactions in question — Notice for reassessment for subsequent years issued on the basis of rulings in another case — Transactions similar to those in respect of which ruling rendered in Assessee’s case — No change in law or new tangible material and independent formation of belief by the AO — Notices for re-opening invalid.

Reassessment — Notice — Validity — Seizure of cash by police — Cash produced in Magistrate Court and case registered — Proceedings u/s. 132A — Department requisitioning for release of cash — Release or custody of cash only in accordance with provisions of section 451 of Cr.PC 1973 — First proviso to section 148A applicable — Notices valid though issued non-complying with procedures u/s. 148A.

Recovery of tax — Company — Liability of director of private company — Order u/s. 179 — Condition precedent — Inability to recover tax dues from company.

Refund — Adjustment of demand — Recovery of tax — Grant of stay of demand — Powers of the AO — Instructions issued by the CBDT misconstrued — Application for rectification of order pending before Commissioner (Appeals), National Faceless Appeal Centre — Adjustment of refund without considering application for stay of demand arbitrary and illegal — Matter remanded with directions.

Section: 143(1) – Intimation – ICDS adjustment and valuation of inventory – Writ Petition – Alternate remedy – Article 226 of the Constitution of India : Assessment Year 2022-23.

Section 143(3) r.w.s. 148: Reopening of assessment — Assessment completed — Petitioner had explicitly sought for a personal hearing — Not granted – breach of the principles of natural justice.

Credit card dues settled / paid in cash, qualify for addition u/s 69A if the source of cash deposit is not explained.

Where funds were introduced by the partners of the firm as their capital contribution and their confirmations filed, the onus cast on the assessee stood discharged. If the AO is not satisfied with the explanation then the addition may be made in the hands of the partners but not in the hands of the assessee firm.

Where Revenue has failed to establish direct nexus between the borrowed funds and interest-free advances, the presumption is that the interest-free advances have been made out of interest-free funds available with the assessee.

Penalty levied under section 270A deleted where the assessee having fulfilled the conditions for grant of immunity from levy of penalty u/s 270AA of the Act made a belated application under section 270AA and no opportunity was given to the assessee as also no order passed by the AO rejecting the assessee’s application.

S. 54F–Deduction under section 54F is allowable to the assessee even if the new residential property was purchased by him in the name of his wife.

S. 12A–If the charitable institution had filed its return of income belatedly but within time allowed under section 139(4), then the tax department must allow exemption under section 11.

S. 12AB–CIT(E) cannot deny registration under section 12AB on the ground that some of the objects of the applicant-trust had an element of commerciality.

Sec. 68: Where the assessee company had placed on record with the AO supporting documentary evidence substantiating the authenticity of its claim of having received share application money from the investor company, viz. confirmation, bank statement, copies of the return of income, financial statements of the investor company, copy of share application forms, copy of PAN, copy of memorandum and articles of association, copy of board resolution and return of allotment in Form No.2, though notice u/s 133(6) was not complied with by the investor company, the AO on the said standalone basis could not draw adverse inferences in the hands of the assessee company for addition u/s 68 in respect of share capital and share premium.

Sec. 43A: Where the assessee claimed expenses on account of foreign exchange fluctuation, which were merely reinstatement of losses as per accounting standards and there was no actual payment or remittance, section 43A could not apply.

Section 92, 92A, and 92B(2) – Whether transaction between the foreign Head Office (HO) and its Project Office (PO) in India is subject to transfer pricing provisions.

Article 4 and 12 of India-USA DTAA — Single Member LLC is a taxable entity under US Tax laws, hence entitled to a beneficial rate under the DTAA.

Is Tax Binging On Your Earnings?

From The President

Credit Notes under GST

Goods And Services Tax

Recent Developments in GST

Investment by Non-Resident Individuals in Indian Non-Debt Securities – Permissibility under FEMA, Taxation and Repatriation Issues

स्वभावो दुरतिक्रम:

Misconduct and Punishments

Regulatory Referencer

Society News

Digital Arrest – A Serious Threat