Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Inclusion of a tax component within reported turnover was identified as the dominant issue; the article explains that treating tax as turnover risks double taxation and that the assessing authority must reassess the point because exclusion of the tax component follows from the statutory definition. The text further addresses the pre-deposit requirement, noting the contention on tax inclusion was raised in assessment proceedings and therefore is not a fresh plea to avoid pre-deposit; on that basis the impugned assessment is set aside in part and remitted for fresh consideration after giving the petitioner an opportunity of hearing and securing a specified deposit.
Inclusion of a tax component within reported turnover was identified as the dominant issue; the article explains that treating tax as turnover risks double taxation and that the assessing authority must reassess the point because exclusion of the tax component follows from the statutory definition. The text further addresses the pre-deposit requirement, noting the contention on tax inclusion was raised in assessment proceedings and therefore is not a fresh plea to avoid pre-deposit; on that basis the impugned assessment is set aside in part and remitted for fresh consideration after giving the petitioner an opportunity of hearing and securing a specified deposit.
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