TaxTMI 
TaxTMI 
Deduction u/s 80J, 80K, exemption certificates u/s 197 - responsibility of ITO
X X X X Extracts X X X X
X X X X Extracts X X X X
....a new industrial undertaking is entitled to a deduction of an amount upto 6 per cent of the capital employed in the industrial undertaking in computing its total income. Further, under section 80-K, dividends attributable to such profits are allowed to be deducted from the total income of the shareholders. Where by reason of the provisions of section 80-K , the whole or any portion of the dividend....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h adjustments from the provisional stage of beginning of production of the undertaking to the stage of assessment finalisation. 2. It has come to the notice of the Board that in the case of some companies the Income-tax Officers had without carefully examining whether the case of the company was covered under section 80-J or not, issued provisional exemption certificates under section 197(3) in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....care and diligence to ensure that he does not issue any unwarranted certificate authorising a lesser deduction of tax at source from dividends. (b) When the Income-tax Officer issues such a certificate in any case, he should make it abundantly clear that the certificate is provisional and is subject to modification later on. (c) He should also ensure that the company too makes suitable endor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r section 147(b) for assessing the additional tax liability. Acknowledgments should invariably be obtained for these intimations. (e) Similar procedure should be followed by the Income-tax Officer if there is any modification on this point as a result of appeal etc. (f) The Income-tax Officer assessing the company shall be held responsible for any loss of revenue because of failure to observ....