RNM Tax Alert – Direct Tax Part for Feb 2025
NOTIFICATION G.S.R. 145(E) [NO. 17/2025/F. NO. 370142/28/2024-TPL], DATED 24-2-2025
The CBDT amends due dates for furnishing of statements in Form 64A and 64E by business trust & securitization trust. Also via Income-Tax (Fifth Amendment) Rules, 2025 – amendment made in Form No. 10IH; and Substitution Of Rules 12CA, 12CC and FORM Nos. 64A, 64B, 64C, 64D, 64E AND 64F.
NOTIFICATION NO. G.S.R. 125(E) [NO. 14/2025/F.NO. 370142/2/2025-TPL], DATED 7-2-2025
The CBDT amends Rule 114DA and Form No. 49C; prescribe due date for furnishing of statement by NR having Liaison Office in India.
“In rule 114DA, in sub-rule (1), for the words, figures and letter “Form No. 49C”, the words, figures and letter “Form No. 49C within eight months from the end of such financial year” shall be substituted;” as against 60 days.
Important Judicial Precedents
Levy of penalty u/s 271AAA not mandatory if assessee admitted undisclosed income during search: SC
[2025] 171 taxmann.com 413 (SC) K. Krishnamurthy vs. DCIT
Where assessee admitted certain amount as undisclosed income during search and substantiated manner in which said undisclosed income was derived and paid tax together with interest thereon, albeit belatedly, all conditions precedent mentioned in section 271AAA(2) stood satisfied and, therefore, penalty under section 271AAA(1) was not attracted on said amount
JAO has authority to issue reassessment notice even under Faceless Assessment Scheme: HC
[2025] 171 taxmann.com 174 (Delhi-HC) Kanwaljeet Kaur vs. ACIT
Section 148, read with sections 144B and 151A of the Income-tax Act, 1961 – Income escaping assessment – Issue of notice for (Jurisdiction to issue reopening notice) – Whether faceless assessment scheme centralizes processes under Faceless Assessing Officer (FAO) to reduce direct interaction, however, this structure does not diminish JAO’s authority, therefore, powers of Jurisdictional Assessing Officer(JAO) should be understood as integral and not in conflict with faceless assessment – Held, yes – Whether distribution of functions between JAO and National Faceless Assessment Centre (NFAC) is complimentary and concurrent as contemplated under various schemes and statutory provisions – Held, yes – Whether JAO cannot be completely deprived of power to assess or reassess merely because section 144B and Faceless Reassessment Scheme 2022 have been introduced – Held, yes – [Para 3][In favour of revenue]
No sec. 68 additions on allotment of shares without any monetary consideration: HC
[2025] 171 taxmann.com 211 (Delhi-HC) PCIT vs. Zexus Air Services (P.) Ltd
Where assessee company had issued shares to a person in lieu of goodwill and without any monetary consideration, since transaction did not represent an actual receipt of any cash in hands of assessee company, provisions of section 68 were not attracted.
Concealment penalty rightly imposed on assessee who inflated value of plot and introduced it as capital in firm: HC
[2025] 171 taxmann.com 472 (Bombay-HC) Veena Estate (P.) Ltd. vs. CIT
Where assessee developed a plot of land purchased by it and revalued this plot and introduced it as its capital into partnership firm formed by assessee and six others, since very constitution of firm and transaction of assessee inflating value of plot of land and contributing it to stock in trade, followed by withdrawals of its investment within a short period, amounted to a device or subterfuge or conduit to facilitate tax evasion, minimum prescribed penalty was rightly imposed on assessee.
Penalty deleted as SCN didn’t specify any particular limb or sub-clause for levying proposed penalty: ITAT
[2025] 170 taxmann.com 792 (Mumbai – Trib.) Manish Manohardas Asrani vs. INT Tax
Where in penalty notice issued under section 274 read with section 270A, Assessing Officer had failed to specify any particular limb or sub-clause of section 270A and only mentioned under reporting of income, penalty levied for both under reporting and misreporting of income was to be deleted.
Sec. 153C proceedings require satisfaction that seized material impacts income; SLP dismissed
[2025] 171 taxmann.com 54 (SC) ACIT vs. Mamta Agarwal
SLP dismissed against order of High Court that unless Assessing Officer is satisfied that material gathered during search could potentially impact determination of total income, it would be unjustified in mechanically reopening or assessing all over again all ten assessment years that could possibly form part of block of ten years.
Prosecution under Black Money Act can be initiated even before completion of assessment: SC
[2025] 171 taxmann.com 307 (SC) Sanjay Bhandari vs. Income-tax Officer
Where High Court by impugned order held that prosecution under section 51 cannot be dependent on completion of assessment, as offence, if proved, stands completed as soon as conditions as required under section 51(3) are fulfilled, irrespective of return of income, SLP against said order disposed of with permission granted to assessee to raise all contentions legal as well as factual available to him before concerned authority under provisions of Black Money Act, 2015 without being influenced by impugned order.
SLP dismissed against HC’s order quashing prosecution as assessee filed revised return after search
[2025] 171 taxmann.com 338 (SC) Income-tax Department vs. Bioworth India (P.) Ltd
SLP dismissed against order of High Court that where assessee filed revised return waiving off claims of deduction of long-term capital gain/short-term capital loss after search was conducted upon him, it was a case of delayed payment of tax, therefore, proceedings pending against assessee for offence punishable under section 276C(1) were to be quashed.
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