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Period of Limitation u/s 143(2) shall be computed from date of original return and from defect removal date
Income tax Assessments
CA. Kavit Vijay

Period of Limitation u/s 143(2) shall be computed from date of original return and from defect removal date

The Assessee filed the Income Tax return on 28.07.2017. Notice for defective return was issued to the Assessee on 06.07.2018 and such defect was rectified on 19.08.2018. Therefore, the return got processed under Section 143(1)(a) of Income Tax Act and corresponding refund was also issued. Later, notice was issued under section 143(2) of the act on 22nd September, 2019. The Assessee challenged the validity of Assessment framed under Section 143(2) contended that notice was issued beyond period of limitation. The Assessee contended that The limitation for issuance of notice u/s 143(2) of the Act was not to be determined from the date/end of the financial year in which the defect was rectified. Rather the same should be determined from the date/end of financial year when the original return of income was filed. 

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Permanent Establishment
Income tax Assessments
CA. Kapil Mittal

Mere establishment of Subsidiary in India does not tantamount to Having Permanent Establishment in India

The Assessee is a company based out in Austria. The Assessee is having a Subsidiary Company in India. The Appellant has received software-related services income during the year. Apart, The Company also received reimbursement of expenses from Indian Subsidiary. However, the Company claimed the same as exempted Income as expenses are recovered on cost to cost basis without any markup. Further, the Company also supplied goods to Indian Entities on a principal to principal basis. The Ld. AO Charged Income tax on reimbursement of expense claiming that such income pertains to technical income provided to Indian subsidiary. Further, AO assumed that entire sales in India are made through Indian Subsidiaries. The Asseesee has a fixed place of business in India in the form of Indian Subsidiary. The ‘core business’ of the assessee is conducted through Mosdofer India Private Limited. Therefore, profit attributable to such PE is taxable in India.

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Faceless Assessment & Appeal Scheme
Faceless Assessments
CA. Kapil Mittal

Faceless Assessment & Appeal Scheme|Transparency in Taxation System

Faceless assessment is a “big step in reducing Department’s interference from people’s lives” and ensures speedy assessment of cases. Further, another major cause is that the I-T department has been progressively reducing the percentage of cases picked up for scrutiny assessment so as to establish the fact that the department places trust on the taxpayer.

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Tax Dispute Settlement Scheme | No Penalty or Interest
Income tax Assessments
CA. Kavit Vijay

Vivad Se Viswas: Tax Dispute Settlement Scheme | No Penalty or Interest

The Government has approved the Direct Tax Vivad Se Viswas bill for providing resolutions to multiple pending tax litigations and collecting cash before the year-end.  1. What is Vivad Se Viswas Scheme? Budget 2020 introduced a bill in the Parliament containing details of the Direct Tax Dispute Settlement Scheme- Vivad Se Viswas.  This bill proposes discounted or less payment for the dispute settlement. The condition is- only if the taxpayer makes the payment before or on 31st March 2020.  If any taxpayer wants to avail the benefit of this bill after or on April 1st, 2020, he/she has to pay

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