RNM Tax Alert – Direct Tax Part for December 2024
CBDT extends due date for filing belated/revised ITR for AY 2024-25
The CBDT vide circular no. 21/2024 dated 31.12.2024 has extended the last date for furnishing a belated return of income or for furnishing a revised return of income for the Assessment Year 2024-25 in the case of resident individuals from 31st December 2024 to 15th January 2025.
CBDT modifies and issues new FAQs on DTVSV Scheme
That the CBDT vide Circular No. 19/2024 issues Guidance Note 2/2024 on provisions of the Direct Tax Vivad Se Vishwas Scheme, 2024
CBDT extends due date for DTVSV scheme payment from 31-12-2024 to 31-01-2025
The CBDT vide circular no. 20/2024 dated 30.12.2024 has extended the due date for determining the amount payable under the Vivad Se Vishwas Scheme from 31st December 2024 to 31st January 2025. The extension is applicable for those cases where the declaration is filed on or before 31st January 2025.
No TDS u/s 194Q on goods purchased from IFSC if seller opts for sec. 80LA relief: CBDT
The CBDT vide Notification No. 3/2025 has specified that no TDS u/s 194Q of the Income Tax Act, 1961, will be required for purchases made from units of International Financial Services Centres (IFSC), provided both buyers and sellers meet specific conditions.
Important Judicial Precedents
Sec. 54F exemption not allowed if assessee purchased two non-adjacent flats in same residential society: HC
[2024] 169 taxmann.com 119 (Delhi-HC) Mrs. Kamla Ajmera vs. PCIT
Where assessee sold a plot of land and used proceeds to purchase two non-adjacent flats, since two flats were constructed and situated physically in a manner that it was not possible to combine them and they could not be used as one single dwelling unit even though they were in a same tower of a residential society, assessee was entitled to exemption under section 54F in respect of only one flat.
Hiring charges paid to owners of vehicles/machines covered u/s 194-I and not u/s 194-C: ITAT
[2024] 169 taxmann.com 123 (Raipur – Trib.) ITO vs. Sun Grace Construction Company
Where assessee paid hire charges to various persons, since it was materially established by assessee that amount for higher charges was paid to owners of vehicles/machines, besides other incidental expenses like fuel, maintenance, tyre-tube, drivers salary etc. were borne by assessee, payment of hiring charges towards hiring of vehicle/machines were in nature of rent within meaning of section 194I.
HC quashed reassessment as AO failed to show how info from investigation wing indicated income escapement
[2024] 169 taxmann.com 590 (Gujarat-HC) J.K. Bullions (P.) Ltd. vs. DCIT
Where Assessing Officer reopened assessment on basis of report of Investigation Wing that cash deposits appearing in bank account of assessee were unexplained money under section 69A and that assessee had made cash sales without keeping proper documentary evidence and identity of customers, since reasons recorded for reopening did not disclose any nexus between information received from Investigation Wing and formation of belief that income had escaped assessment, impugned reopening notice was to be set aside.
Partial stay on recovery of tax demand granted as assessee deposited 20% of demand in each case; SLP dismissed
[2024] 169 taxmann.com 594 (SC) Samir Andrea Kasliwal vs. PCIT
SLP dismissed against order of High Court that where assessee filed multiple writ petitions challenging reassessment orders for relevant years and made various allegations against reassessment orders, if assessee deposited 20 per cent of demand in each case within a period of one month, recovery of balance amount under assessment orders and demand notices issued in aforesaid cases, shall remain in abeyance.
HC set aside assessment order due to lack of effective opportunity of hearing through VC for the assessee
[2024] 169 taxmann.com 619 (Kerala-HC) Leric Reeches vs. Income-tax Officer
Where pursuant to issue of reopening notice assessee opted for personal hearing through video conferencing, however, he could not join link due to technical failure on part of department, and no further opportunity was given to assessee and impugned order was passed, since impugned order was passed without providing effective hearing, order suffered from violation of principles of natural justice and, thus, same was to be set aside and matter was to be remitted back to Assessing Officer
SC dismissed SLP against HC’s order quashing reassessment based on info received from NSEL
[2025] 170 taxmann.com 9 (SC) ACIT vs. N.K. Industries Ltd
SLP dismissed against order of High Court that where Assessing Officer issued notice under section 148 only on basis of information received from NSEL that certain amount was outstanding to be payable by assessee as for termination of liability of NSEL and, thus, having belief that such amount was assessee’s income which escaped assessment, since such belief of Assessing Officer was without considering fact on record that there was no sale or purchase transaction carried by assessee-company on NSEL during relevant assessment year, impugned notice was without jurisdiction and was to be quashed.
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