{"id":248,"date":"2020-08-10T05:56:32","date_gmt":"2020-08-10T05:56:32","guid":{"rendered":"http:\/\/www.rnm.in\/blog\/?p=248"},"modified":"2025-01-30T10:55:45","modified_gmt":"2025-01-30T10:55:45","slug":"government-mending-the-net-its-a-new-catch","status":"publish","type":"post","link":"https:\/\/www.rnm.in\/blog\/government-mending-the-net-its-a-new-catch\/","title":{"rendered":"Government mending the net: It\u2019s a new catch"},"content":{"rendered":"\n

The government has taken\nvarious measures to facilitate compliance by the taxpayers. In July 2020 alone,\nthe government has taken following measures:- <\/p>\n\n\n\n

    \n
  1. Form 26AS to show Financial Transactions <\/li>\n\n\n\n
  2. More time has been provided to file belated\/revised ITR for FY 18-19<\/li>\n\n\n\n
  3. E-campaign launched to encourage voluntary compliance of Income Tax (filing of belated\/revised ITR) wef 20th<\/sup> July 20. <\/li>\n\n\n\n
  4. New functionality introduced on the e-filing platform to facilitate checking of TDS rate of a cash withdrawing person u\/s 194N to enable compliance to banks\/post offices. <\/li>\n\n\n\n
  5. Instead of declaring ITRs filed for AYs 2015-16 to 2019-20 invalid due to lack of verification, the government has extended a time window up to 30-09-2020 by which the taxpayers can provide verification of the tax returns.<\/li>\n<\/ol>\n\n\n\n

    On\nthe other hand, in July 2020 only, the CBDT has signed various MOU\u2019s with\nvarious organizations like SEBI, CBIC and MSME Ministry for automatic and\nregular exchange of information to catch hold of any non-compliances or\nmisreporting by the taxpayers.  <\/p>\n\n\n\n

    Important Statutory developments <\/strong><\/p>\n\n\n\n

      \n
    1. Statement\nof Financial Transactions (SFTs) will now be shown as Part E of the new Form\n26AS.<\/li>\n\n\n\n
    2. Due\ndate for filing belated\/revised ITR for FY 18-19 is further extended from 31st<\/sup>\nJuly 20 to 30th<\/sup> Sept 20 in view of COVID crisis. Self-Assessment tax\npaid by senior citizens not liable to pay advance tax to be treated as Advance\ntax for the purpose of computing interest u\/s 234A. <\/li>\n\n\n\n
    3. A\n11 day e-campaign to achieve voluntary compliance of Income Tax (filing of\nbelated\/revised ITR) launched by CBDT from 20th<\/sup> July 20. <\/li>\n\n\n\n
    4. CBDT\nhas introduced a functionality on the e-filing platform to enable the banking\ncompany or a co-op. bank or a post office to check whether person withdrawing\ncash is falling within the proviso to Section 194N or not. <\/li>\n\n\n\n
    5. CBDT\nsigns Memorandum of Understanding for sharing ITR related information to\nMinistry of MSME. <\/li>\n\n\n\n
    6. CBDT\nhas clarified that the exemption Notifications 68, 70 and 80 with respect to\nsection 194N issued in 2019 shall be deemed to be issued under fourth proviso\nto section 194N as amended by the FA, 2020. <\/li>\n\n\n\n
    7. ITRs\nfiled for AYs 2015-16 to 2019-20 pending verification can be now be validated\nby providing verification (physical\/online) up to 30-09-2020.<\/li>\n\n\n\n
    8. A\nformal Memorandum of Understanding signed between CBDT and SEBI for exchange of\ndata between two organizations on regular and automatic basis. <\/li>\n\n\n\n
    9. CBDT\nnotifies \u2018NPS Tier II- Tax Saver Scheme, 2020\u2019 for Sec. 80C deduction. The lock\nin period under the scheme shall be three years from the date of credit of\namount.<\/li>\n\n\n\n
    10. CBDT\nand CBIC have signed a new Memorandum of Understanding for data exchange for\nspontaneous exchange of data as requested.<\/li>\n\n\n\n
    11. CBDT\nrelaxes timeline for processing of non-scrutiny ITRs filed up to AY 2017-18\nwith refund claim. <\/li>\n<\/ol>\n\n\n\n

      Important Judicial Precedents <\/strong><\/p>\n\n\n\n

        \n
      1. The\nAhmd ITAT in the case of Chhotabhai\nJethabhai Patel & Co<\/em> held that losses already set off against profit of\nother business not to be reduced notionally while computing profit u\/s 80-IA. <\/li>\n\n\n\n
      2. The\nChd ITAT in the case of Paramount Impex held that books of account couldn\u2019t be\nrejected just because assessee didn\u2019t maintain stock register.<\/li>\n\n\n\n
      3. The\nMum ITAT in the case of Yogesh Mavjibhai\nGala<\/em> held that holding period for purpose of capital gains has to be\nreckoned from date of allotment of flat and not date of possession of flat<\/li>\n\n\n\n
      4. The\nKarnataka High Court in the case of International\nSociety For Krishna Consciousness<\/em> held that revision u\/s 263 cannot be made\nif reassessment proceedings were dropped by AO after taking one of possible\nviews.<\/li>\n\n\n\n
      5. \u2018The Madras High Court in the case of K.P.R. Developers Ltd<\/em> held that TComputerised Patta\u2019 showing land as wet\nland to be deemed as agricultural land and merely because an agriculture\nactivity could not be done on said land for various reasons including natural\ncauses, it did not cease to be an agricultural land, thus, same could not be\nconsidered as capital asset as per section 2(14) and capital gain arising from\nsame was exempt from tax.<\/li>\n\n\n\n
      6. The\nMum ITAT in the case of Tata Education\nand Development Trust<\/em> held that exemption u\/s 11is allowable for sum spent\non CBDT-approved foreign universities. <\/li>\n\n\n\n
      7. The\nMum ITAT in the case of Abdul Kayum Ahmed\nMohd. Tamboli<\/em> held that \u2018Development Right\u2019 is business asset; no capital\ngain arises on sum received on its transfer:<\/li>\n\n\n\n
      8. The\nMadras High Court in the case of Smt. S.\nMahalakshmi<\/em> held that the process of converting raw urad into urad dal is a\nmanufacturing activity and assessee would be entitled to deduction under\nsection 80-IA.<\/li>\n\n\n\n
      9. The\nBang. ITAT in the case of Flutura\nBusiness Solutions (P.) Ltd<\/em>. held that to determine fair market value of\nshare allotted in lieu of purchase consideration payable for an acquired asset,\nan assessee has two choices – he may adopt either NAV method or DCF method;\nAssessing Officer can determine fresh valuation but cannot change method of\nvaluation opted by Assessee.<\/li>\n\n\n\n
      10. The\nMadras High Court in the case of Nagaraj\n& Co. (P.) Ltd. <\/em>held that the assessee can\u2019t file rectification\napplication to claim deduction which is debatable in nature. <\/li>\n\n\n\n
      11. The\nKarnataka High Court in the case of C.\nRamaiah Reddy<\/em> held that where assessee, engaged in real estate business,\nreceived certain land as stock in trade in partition of joint family property,\nheld as stock by joint family also, there was no conversion of capital asset\ninto stock in trade, section 45(2) not applicable. <\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

        The government has taken various measures to facilitate compliance by the taxpayers. In July 2020 alone, the government has taken following measures:- On the other hand, in July 2020 only, the CBDT has signed various MOU\u2019s with various organizations like SEBI, CBIC and MSME Ministry for automatic and regular exchange of information to catch hold of any non-compliances or misreporting […]<\/p>\n","protected":false},"author":3,"featured_media":253,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[16,14],"tags":[10,73,75,74],"class_list":["post-248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-direct-tax","category-general","tag-cbdt","tag-income-tax","tag-itat","tag-itr"],"yoast_head":"\nGovernment Mends the Net: A New Catch - Rnm India<\/title>\n<meta name=\"description\" content=\"The government has taken steps to mend the net, in an effort to improve the security of online transactions and to protect consumers from fraud.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rnm.in\/blog\/government-mending-the-net-its-a-new-catch\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government Mends the Net: A New Catch - 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