Friday, August 1, 2014

TAX REGIME vs NEW GOVERNANCE On- OR Back - ward March >>>

Dec 20

The Comproller &Auditor General of India (CAG) has issued a report No. 32 of 2014 setting out the results of the performance audit of “Appreciation of Third Party (Chartered Accountant) Certification in Assessment Proceedings of the Department of Revenue”.


CAs on warpath X CBDT!

 CA Community Files PIL against Revised Tax Audit report in Delhi & Other HCs

Claim u/s 54/54F may be allowable in case of purchase of more than one new flats when such flats constitutes one residential house

Full Text:

The ITAT Order, if were to be cared and looked into, may be noted to have been passed as recently as in May 2014, being close to but anterior  to the announcement of the Budget proposal to make amends to the extant law (sec. 54 and 54 F). Now, as made clear in the said proposal, the referred amendments, made by way of a "rationalization measure",  are to become effective from April 1, 2015, assessment year 2015-16, and onwards. By necessary implication,therefore, for any assessment year 2014-15, or earlier, the extant law as before  amendment must apply. 

In this view of the matter, going by the very same "rational" thinking, the Revenue is expected, rather ought to be urged, to treat the related issue (s) for the preceding years as once for all settled in taxpayers' favour. In other words,  in the interests of natural justice, more so to go by common sense, the Revenue should forthwith , conceding the correct legal position as aforesaid, come out with a directive or advice as the case may be,  to the concerned authorities, to immediately dispose of all the cases across the country accordingly,  wherever pending, by a simple order or judgment to fall in line with the extant law before the amendments.

For instance, in the itat case (Mum) under reference, no attempt should be made to take up / prolong the matter any further, but treat it as a CLOSED CHAPTER SO TO SAY ; that is, with no need for even any  further hearing of both sides. Thereby, save , besides the hassle and hardship, further cost of litigation, in the larger public interest.

It is hoped the underlying purposeful message will, for obvious reasons, be reached to the IT Department, by one and all truly concerned, at the earliest.


A K Bhattacharya: Making tax collection less taxing
Tracking a smaller number of taxpayers with a high income base and using data from millionaire surveys and purchases of high-end cars and houses can make the tax department more efficient Read More »


No penalty U/s. 271(1)(c) for mere for failure to compute capital gains as per Section 50C

ICAI Clarification on High Court Order on VAT Act in State of U.P.

The Institute is seized of the matter and taking all steps to ensure that the status quo ante is restored in the matter and interest of the profession is preserved. As a first step, it is proposed to implead * ICAI in the aforesaid matter as ICAI is not a party to the said case.

The Institute is seized of the matter and taking all steps to ensure that the status quo ante is restored in the matter and interest of the profession is preserved. As a first step, it is proposed to implead ICAI in the aforesaid matter as ICAI is not a party to the said case. - See more at:
The Institute is seized of the matter and taking all steps to ensure that the status quo ante is restored in the matter and interest of the profession is preserved. As a first step, it is proposed to implead ICAI in the aforesaid matter as ICAI is not a party to the said case. - See more at:

 * OBVIOUSLY, INTENDED TO MEAN, - have icai impleaded as a necessary party ?!


Recent Amendments in TDS-Large Consequences


Getting the best out of consultants


<Voice into the system

< Unless consultants know, think and feel that they are being accepted unconditionally, with positive orientation, appreciated for what they bring and are well disposed to, consultants will tend to become guarded, perhaps less open and most often prescriptive.
Clients should not lull themselves into believing that consultants can offer prescriptions. They must realise that the consultant only brings to the relationship and engagement eclectic wisdom gained over several contacts that he has made and the ability to look at the situation dispassionately. Clients should not employ consultants to ‘voice into the system’ their anxieties nor use consultants to mouth their directives.
Consultants must have the latitude and freedom, much like a coach to be able to say it as it is and it is for the client to glean meaning and essence.
When clients hire a consultant with faith and belief in their competence and trust that the consultant means well and is sincere, the ensuing collaboration will be rich and fruitful.
Anything short of an unconditional, positive, appreciative and acknowledging engagement of the consultant will not achieve what the relationship was set out to do.
The writer is an organizational and behavioral consultant.>


At the first blush, the points intended to be driven home are mostly confusing ; some prima facie unacceptable, instantly offending own intelligence whatever be its standard / level. Must be so  especially to anyone, himself being a consultant is / or so considered/ believed  to be, an 'expert' , who at least once in his lifetime would have been obliged or under compulsion  had to go to another consultant . Often the object is to have with him an external advice, so as to fall back on, if so required later for self-defence. That can happen even if the second opinion sought and taken is on a point of accounting or tax, on which no firm view or conviction is possible.

This is almost a daily routine in the life of a CA, howsoever knowledgeable he be in his own way, who seeks the help of a lawyer for a second opinion on a point of accounting or tax; but with the predominant aim of  ‘passing the bug’ so to say. In reality, however, and according to a sane largely accepted perception, a CA, if say, functioning as a statutory auditor or tax adviser,  will not be right in simply taking  and deciding  to act as per the lawyer’s opinion as ‘gospel’; if he does so, will, for obvious reason,  be acting (or failing to act) at his own peril.

Be that as it could not be truthfully or fairly expected to be otherwise anyway, for instance, even on a quick look at the latest modified form and substance  of ‘statutory audit report’ – financial or tax, may not fail to enable anyone with a reasonable level of IQ to realize where we are heading.

Part of posted comment not disclosed (after moderation; reason unknown)  HERE >

To add, in quest  of  some comfort, the consolation has, with having only a Hobson’s choice, to be eventually  found in the actual / factual ‘realities’ largely obtaining but taken in the stride  in regard to every other human activity one can think of. The imponderable anyone  is  sure to be ultimately left with, but most likely as ever before remain unanswered to eternity , is this: Who or what exactly  is responsible and to be truly blamed !

(In the same vein, leaving this to be edited or reviewed  by anyone else at large)


 High income, low tax... House that!




 No Disallowance under section 14A If Own Funds Exceed Borrowed Funds on TaxGuru!

<>  This is yet another glaring instance, which in one's perception,and long standing conviction, goes to demonstrate the indisputable fact of life; namely  that, most of such or similar type of litigation, could have been avoided/not prolonged, in any event to the level of High court, had the Revenue / its concerned lower authorities, besides taxpayers, have cared and acted sanely and sensibly on an issue reasonably settled once by the court in any State, constituting a "PRECEDENT". Especially so,should the factual matrix in a given case is, in material respects, on all fours/not at variance in an intelligent comparison to that earlier decided court case.
No need to add: Now that the new chief of CBDT, the highest executive authority,- if were to go by the tenor/spirit of a recent directive issued by him,- seems to be inclined to depart from the past practice, and instead, follow a right or better path in the proper administration of the tax law,- it is to be believed , would not but afford the utmost attention to the said aspect and do his best to change the course of direction suitably, so as to  lead to a preferred infructuous -litigation-free outcome.
Over to suitably equipped  'experts' for carrying forward the matter, keeping in focus what is essentially to be done for the common good of both taxpayers and the Revenue.


 Added complicity.

Sec 54 !

ICAI President’s Message – August 2014

ICAI invites suggestions on revised formats of Form Nos. 3CA, 3CB and 3CD

tentative >

Form 3CA
to the best of ... *my / our information and KNOWLEDGE, and  according to examination of books of account including other relevant documents and explanations given to *me / us, 
AFTER SATISYING SELF/SELVES those are prima facie acceptable/or no reason not to accept,the particulars given in the said Form No.3 CD are true and correct AND COMPLETE

Form 3CD
Part B
10. (a) Nature of business or profession (if more than one business or profession is carried on during the previous year, nature of every business or profession)
(b) If there is any change in the nature of business or profession, the particulars of such change.


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