{"id":275,"date":"2020-09-03T06:22:25","date_gmt":"2020-09-03T06:22:25","guid":{"rendered":"http:\/\/www.rnm.in\/blog\/?p=275"},"modified":"2025-01-30T10:55:45","modified_gmt":"2025-01-30T10:55:45","slug":"honoring-the-honest","status":"publish","type":"post","link":"https:\/\/www.rnm.in\/blog\/honoring-the-honest\/","title":{"rendered":"Honoring the Honest \u2013 Transparent yet faceless system"},"content":{"rendered":"\n

Recently, the Prime Minister of India launched the \u2018Transparent Taxation – Honoring the Honest\u2019 platform to honour the honest taxpayers of the country. The key highlights of the Transparent Taxation Platform are faceless assessment, faceless appeal and taxpayer charter.<\/p>\n\n\n\n

The aim of a faceless system is to eliminate\nbribery and corruption so that the justice be available to all taxpayers\nequitably, whether rich or poor, influential or not. That is, the taxpayers\nwould not be required to meet with the income tax officer directly or stand in\nqueues while visiting the crowded revenue office. Under the faceless system,\nthe appeals would be randomly allotted to any officer in the country and the\nidentity of the officer deciding appeal would remain unknown. Also, to provide\na strong foundation for implementation of the faceless system, a charter\noutlining the rights and responsibilities of both the taxpayer and the tax\nofficer is issued by the government.  <\/p>\n\n\n\n

We feel that there could not be a better time\nto launch the faceless scheme. It is commendable on part of the government to\nkeep-up with its upgradation for achieving a better system integrated with technology.\nThis has enabled Indian judiciary to work without Covid disruption. Hats off,\nas the faceless scheme serves dual purpose in the current corona virus crisis\nscenario by removing human interface viz. (1) no corruption and (2) safety from\ngetting the super contagious killer virus!! <\/p>\n\n\n\n

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

    \n
  1. CBDT\nhas issued circular advising banks to immediately refund the charges collected,\nif any, on or after 1st<\/sup> January 2020 on transactions carried out\nusing the electronic modes prescribed u\/s 269SU of the Act. <\/li>\n\n\n\n
  2. Pension\nfunds to be eligible for exemption u.s. 10(23FE) on satisfaction of certain\nconditions. <\/li>\n\n\n\n
  3. Faceless\nAssessment Scheme, 2019 implementation guidelines issued. <\/li>\n\n\n\n
  4. Income\ntax department officers are required to make communications and conduct\nproceedings digitally (electronically) in strict adherence to social distancing\nnorms.  <\/li>\n\n\n\n
  5. The\nscope of E-assessment \/ Faceless Assessment extended to cover best judgment\nassessments. <\/li>\n\n\n\n
  6. CBDT\nhas directed that the officers posted in Directorates of Investigation\n(Investigation Wing) and Commissionerates of TDS shall act, only and\nexclusively, as Income-tax Authority for the purpose of survey under section\n133A<\/li>\n\n\n\n
  7. All\nAssessment Orders to be passed by NeAC under Faceless Assessment Scheme except\nfor cases assigned to Central Charges & International Tax Charges. <\/li>\n\n\n\n
  8. CBDT\nissues Mutual Agreement Procedure (MAP) Guidance following OECD recommendations.<\/li>\n<\/ol>\n\n\n\n

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

      \n
    1. Capital gains arising out of land\nacquisition compensation is taxable in year of award of compensation and not\ndate of notification for acquisition [Supreme\nCourt – Raj Pal Singh] <\/em><\/li>\n\n\n\n
    2. Mere non-disclosure of exempt income in ITR\nwouldn’t amount to escaped income. [Supreme\nCourt – Swastic Safe Deposit and Investments Ltd]<\/em><\/li>\n\n\n\n
    3. Cash deposits to be treated as income if\nassessee didn\u2019t produce material regarding source of deposits [Delhi HC- Ravinder Kumar]<\/em><\/li>\n\n\n\n
    4. When assessee gets shares of amalgamated\ncompany in lieu of shares of amalgamating company, a ‘transfer’ does take place\nwithin meaning of section 2(47) [Delhi\nHC- Nalwa Investment Ltd.]<\/em><\/li>\n\n\n\n
    5. AO can\u2019t withhold refund by issuing\nscrutiny notice without recording justifiable reasons [Delhi HC – Cooner Institute of Health Care & Research Centre (P.)\nLtd.]<\/em><\/li>\n\n\n\n
    6. In absence of a statutory provision, a duty\ncannot be cast upon legal heir to intimate death of assessee to department [Delhi HC – Savita Kapila]<\/em><\/li>\n\n\n\n
    7. Loss on redemption of debentures couldn\u2019t\nbe disallowed if it was proved that borrowing was utilized for business [Delhi ITAT- Shivsagar Builders (P.) Ltd.]<\/em><\/li>\n\n\n\n
    8. Scheme of business arrangement to acquire\nshares of another Co. can\u2019t be termed as business of dealing in securities [Delhi ITAT-<\/em> Quippo\nTelecom Infrastructure (P.) Ltd.]<\/em><\/li>\n\n\n\n
    9. Expenditure incurred by assessee on\nimplementation of software for smooth functioning of business, was to be\nallowed as deduction under section 37(1) [Delhi\nITAT-<\/em> Triveni Engineering\n& Industries Ltd] <\/em><\/li>\n\n\n\n
    10. No requirement of withholding tax while\nmaking payment of reimbursement of exp. incurred by AE outside India [Delhi ITAT- Exxon Mobil Lubricants (P.)\nLtd.]<\/em><\/li>\n\n\n\n
    11. Where assessee was beneficial owner of\ndeposits in foreign bank accounts and declined to sign consent waiver so as to\nenable Income-tax Department to obtain all necessary details from said account,\nadditions in respect of assessee’s foreign bank account was justified. [Mum ITAT- Renu T Tharani]<\/em><\/li>\n\n\n\n
    12. No capital gains if possession of land\nwasn\u2019t transferred due to termination of agreement to sell [Mum ITAT – Futura Polyster Ltd.]<\/em><\/li>\n\n\n\n
    13. In order to claim benefit of set-off of\nlosses under section 72A, condition of filing Form No. 62 is only directory and\nnon-compliance thereof would not disentitle assessee to claim carry forward\nlosses to be set off against profits of company [Madras HC – Lotte India Corporation Ltd]<\/em>.<\/li>\n\n\n\n
    14. Invoking Section 50C provisions without\nreferring matter to valuation officer not justified [Ahmd ITAT – Ramesh Govindbhai Patel]<\/em><\/li>\n\n\n\n
    15. Where assessee developed software\ntechnology park, rental income earned by assessee from leased out properties in\npark was liable to tax as ‘business income’. [Madras HC – Khivraj Motors (P.) Ltd]<\/em>.<\/li>\n\n\n\n
    16. Process of sieving carried out to separate\ndust particles from raw material amounts to \u2018manufacturing\u2019, eligible u\/s 10AA.\n[Madras HC – Vetrivel Minerals] <\/em><\/li>\n\n\n\n
    17. Where assessee received certain amount from\nsubsidiary company as advance towards security for providing corporate\nguarantee, it could not be brought to tax as deemed dividend under section\n2(22)(e) [Madras HC – Acel Ltd]<\/em>.<\/li>\n\n\n\n
    18. Unexplained cash receipts cannot be set off\nwith unaccounted cash payments in absence of any co-relation. [Guj HC- Manojbhai Bhupatrai Vadodaria]<\/em><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

      Recently, the Prime Minister of India launched the \u2018Transparent Taxation – Honoring the Honest\u2019 platform to honour the honest taxpayers of the country. The key highlights of the Transparent Taxation Platform are faceless assessment, faceless appeal and taxpayer charter. The aim of a faceless system is to eliminate bribery and corruption so that the justice be available to all taxpayers equitably, whether […]<\/p>\n","protected":false},"author":3,"featured_media":277,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[16,14],"tags":[90,73,75,89],"class_list":["post-275","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-direct-tax","category-general","tag-honoring-the-honest","tag-income-tax","tag-itat","tag-transparent-taxation"],"yoast_head":"\nHonoring the Honest \u2013 Transparent yet faceless system - RNM India Blogs<\/title>\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\/honoring-the-honest\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Honoring the Honest \u2013 Transparent yet faceless system - RNM India Blogs\" \/>\n<meta property=\"og:description\" content=\"Recently, the Prime Minister of India launched the \u2018Transparent Taxation – Honoring the Honest\u2019 platform to honour the honest taxpayers of the country. 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