RNM Tax Alert – Direct Tax Part for September 2024
1.CBDT issues new guidelines to handle applications for condonation of delay in filing ITR with refund/losses
The CBDT vide Circular No. 11/2024 dated 1st Oct, 2024 has issued a new circular under Section 119(2)(b) of the Income-tax Act, 1961. This circular provides comprehensive guidelines for handling applications for condonation of delay in filing returns claiming refunds and carry forward of losses, detailing conditions and procedures for such cases.
2. NOTIFICATION NO. G.S.R. 584(E) [NO. 104/2024, F. NO. 370142/16/2024-TPL], DATED 20-9-2024
The CBDT notifies Direct Tax Vivad se Vishwas Rules, 2024 and issued some Forms Under The Direct Tax Vivad Se Vishwas Scheme, 2024 effective from October 1, 2024:
Important Judicial Precedents
1. Reassessment notices issued under new provisions within time limit extended by TOLA are valid: SC
[2024] 167 taxmann.com 70 (SC) Union of India vs. Rajeev Bansal
TOLA extended deadlines for actions under specified Acts during the COVID-19 outbreak. The use of “any” in Section 3(1) of TOLA means the relaxation applies to all actions due between March 20, 2020, and March 31, 2021. Accordingly, any amendments or substitutions to provisions of the Income-tax Act do not affect TOLA’s application as long as the action falls within this period. Thus, reassessment notices issued under new provisions within the time limit extended by TOLA are valid.
2. Notice issued without obtaining prior approval of specified authority was to be quashed; SLP dismissed
[2024] 167 taxmann.com 56 (SC) Income-tax Officer vs. Tia Enterprises (P.) Ltd
Section 148 of the Income-tax Act, 1961 – Income Escaping Assessment – Issue of notice for (Approval for PCIT) – Assessment year 2011-12 – Assessee challenged notice under section 148 and order disposing objections issued by Assessing Officer on ground that reassessment proceedings were commenced without approval of specified authority – High Court by impugned order held that since statutory scheme encapsulated in Act provides that reassessment proceedings cannot be triggered till Assessing Officer places before the specified authority reasons to believe that income has escaped assessment for grant of approval, however, in instant case Assessing Officer did not obtain prior approval of specified authority, impugned notice and order were liable to be quashed – Whether special leave petition filed against said order of High Court was to be dismissed – Held, yes [Para 2] [In favour of assessee]
3. Reassessment notice issued after 4 years with sanction obtained from JCIT instead of PCIT quashed: HC
[2024] 166 taxmann.com 536 (Delhi-HC) Abhinav Jindal HUF vs. ITO
TOLA would not alter or amend structure for approval and sanction which stands erected by virtue of section 151; where notice for reopening of assessment was issued four years after end of relevant assessment year, approval granted by JCIT for reopening of assessment would not be compliant with scheme of section 151 and was liable to be quashed.
4. Common Area Maintenance charges paid to mall owner is liable to TDS u/s 194C and not u/s 194-I: ITAT
[2024] 167 taxmann.com 76 (Delhi – Trib.) Benetton India (P.) Ltd. vs. JCIT
Where assessee-company had taken a shop in a mall on rent and it had paid Common Area Maintenance (CAM) charges to payee, since CAM charges paid were for separate and distinguishable services and could not be said to be for use of building, CAM charges paid were not covered by section 194-I and only TDS provision that could be applied was section 194C.
5. Reassessment notice issued by JAO outside faceless mechanism to be stayed till final decision of SC in Hexaware
[2024] 166 taxmann.com 321 (Bombay-HC) JD Printers (P.) Ltd. vs. ITO
INCOME TAX : Where impugned notice under section 148 was issued by JAO and same was outside faceless mechanism as provided under section 144B read with section 151A and ‘scheme’ notified by Central Government under section 151A, reopening notice and any other proceedings arising out of said proceedings were to be stayed till final decision of Supreme Court in proceedings initiated by revenue against order in Hexaware Technologies Ltd. v. Asstt. CIT [2024] 162 taxmann.com 225/464 ITR 430 (Bombay).
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