March 16, 2021

Transfer of Pending Black Money Act Cases to Central Charge from jurisdictional Income Tax Authority

Under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BM Act, 2015), tax is charged on undisclosed foreign income and assets of assessee at the rate of 30%. Therefore, cases of undisclosed foreign income and assets are handled under Black Money Act, 2015.

As per Section 6 of BM Act, 2016, Income Tax authority specified under Income Tax Act shall be tax authority for the purpose of BM Act and every such authority shall exercise the powers and perform the functions within his jurisdiction. Therefore, Cases under BM Act are handled by jurisdictional income tax authority only.

However, the Central Board of Direct Tax (“CBDT”) has decided to transfer such cases vide Instructions F.No.225/24/2021/ITA-II dated 23rd February, 2021.

CBDT has issued following instructions under section 119 of Income Tax Act,1961 read with section 6 and section 84 of BM Act:

All cases which are pending under BM Act with jurisdictional Income Tax authority shall get transferred to respective Central Charges. However, cases pending with ADIT(Inv.)/DDIT(Inv.) shall remain in their jurisdiction only.
Such cases shall be transferred through order of Jurisdictional Income Tax officer under section 127 of Income Tax.

For transferring such Black Money cases in a Hassle free manner, CBST issued following instructions:

At first, the Jurisdictional Income-tax Authority should identify the cases under his charge wherein proceedings pending under BM Act also.
In such identified cases, all proceedings pending under Income Tax Act should be identified including those proceedings for faceless assessment with National eAssessment Centre (NeAC) and National Faceless Penalty Centre (NFPC).
In case proceedings are pending with National eAssessment Centre (NeAC) and National Faceless Penalty Centre (NFPC), then jurisdictional Income-tax Authority shall request NeAC and NPFC through the concerned Principal Commissioner of Income Tax for transfer of such case to the jurisdictional Income tax officer.
Upon receipt of such request, Pr. CCIT(NeAC) / Pr. CCIT(NFPC) may consider transferring the case to the Jurisdictional Assessing Officer.
After that, jurisdictional income tax officers shall transfer the cases to the respective Central Changes by issue of appropriate orders under section 127 of Income-tax Act.
Upon transferring of Income tax jurisdiction in such cases, jurisdiction for the purpose of BM Act will automatically get transferred to respective central charges.
Where any appeal proceedings are pending National Faceless Appeal Centre (NFAC), a copy of order issued under section 127 of Income-tax Act shall be sent to Pr.CCIT(NFAC) also by the Competent Jurisdictional Income- tax Authority.
Upon receipt of the same, Pr.CCIT (NFAC) may consider transferring such appeal(s) to CIT(Appeal)(Central) of that Central Charge by issue of an order as provided in the National ‘Faceless Appeal Scheme, 2020.
Upon issuance of order of transfer, The Additional/Joint Commissioner of Income Tax of respective ranges of Central Charges shall exercise the power and perform the function of Assessing Officer under the BM Act.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

Proceedings can’t be initiated under Section 74 when tax liability is already discharged along with interest

Establishment of Non-SEZ IT/ITES business in IT/ITES Special Economic Zones| Insertion of Rule 11B to SEZ Rules

Streamlining Company Registration in India: A Digital Transformation

How to Start a Startup Company in India

MCA imposed Penalty for failure to issue and transfer shares in Demat form

Others

MCA imposed Penalty for failure to issue and transfer shares in Demat form

As per Section 29(1A) of Companies Act read with Rule 9A of The Companies (Prospectus and Allotment of Securities) Rules, 2014, every unlisted public company shall ensure that before issuance of any securities entire holding of securities of its promoters, directors, key managerial personnel has been dematerialised in accordance with provisions of the Depositories Act 1996. Further, every shareholder of an unlisted public company is required to dematerialise its securities before transfer, if such transfer is made on or after 2nd October, 2018.

23/04/2024 No Comments

Proceedings can’t be initiated under Section 74 when tax liability is already discharged along with interest

Judgements

Proceedings can’t be initiated under Section 74 when tax liability is already discharged along with interest

The petitioner is engaged in the business of generation of electricity through solar plants. The GST returns filed by the petitioner for the period of July, 2017 to March, 2019 were subject to audit. The petitioner was informed about tax liability during audit proceedings on account of wrong availment of ITC and ITC availed with respect to exempted supply. Upon receipt of initial audit observation, the petitioner discharged the entire tax liability alongwith interest. The final audit report was issued much after payment of GST liability. Post audit, the respondent issued show cause notice to the petitioner under Section 74 of CGST Act and confirmed the demand through DRC-07. The petitioner contended that it falls under purview of Section 73(1) and 73(5) of CGST Act and therefore, SCN under section 74 is not sustainable. Whereas, the respondent contended that this is the case of fraud and willful misstatement.

23/04/2024 No Comments

Establishment of Non-SEZ IT/ITES business in IT/ITES Special Economic Zones| Insertion of Rule 11B to SEZ Rules

Information

Establishment of Non-SEZ IT/ITES business in IT/ITES Special Economic Zones| Insertion of Rule 11B to SEZ Rules

Post COVID-19, there are many corporate entities which are allowing employees to work on Complete Work From Home (WFH) basis or on hybrid basis, i.e., Employees are required to come to office on selected days. This approach has reduced occupancy of physical premises by corporate offices and caused vacation of various rented premises.

23/04/2024 No Comments