Income tax - Whether interest obligation arises for the Revenue in every case where excess tax paid by assessee has been retained by the State for its own enjoyment - YES: Supreme Court
THE issues before the Apex Court are - Whether the statutory obligation to refund carries with it the right to interest also; Whether when the assessee deposits tax as per an order passed u/s 195(2), the Revenue is under obligation to pay interest on refund processed as per the appellate order and Whether interest obligation arises for the Revenue in every case where excess tax paid has been retained by the State for its own enjoyment. And the verdict goes against the Revenue.
The Hon. Delhi High Court on its Own Motion has considered the issue and passed directions to Central Board of Direct Taxes (CBDT) to address the issue which will mitigate the hardship being caused to the assessees and their legal representatives for no faults of theirs. The citation of the judgment reported is 352 ITR 273 (Del) in the case of Court on its Own Motion v. Commissioner of Income Tax.The full judgment is attached for your ready reference.
Whether assessee can be denied exemption merely because he himself did not cultivate agricultural land - NO: Income TAx u/s 10(37) & 45(5)
AHMEDABAD, MAY 02, 2013: THE issues before the Bench are - Whether assessee can be denied exemption merely because he himself did not cultivate the agricultural land; Whether the concept of personal cultivation also recognizes, cultivation of a land through hired labourer or through member of one’s family and Whether the exemption u/s 10(37) can be denied merely on the basis that the assessee was not residing close to the land or was also pursuing some other business and thus the land was not used for agricultural purposes by the assessee. And the verdict goes in favour of the assessee.
Whether when assessee fails to e-file TDS return for lack of verified PAN numbers although TDS deducted was deposited in time, such delay doesn't warrants Penalty of Rs. 100/= per day.
CUTTACK, APRIL 10, 2013: THE issue before the bench is - Whether when assessee fails to e-file TDS return for lack of verified PAN numbers although TDS deducted was deposited in time, such delay warrants penalty u/s 272(2)(k). And the verdict goes in favour of assessee.
it authorities cant adjust outstanding demand against pending refund without first informing the assessee
The Delhi high court has instructed tax authorities not to adjust refunds due against past outstanding demands under any circumstances without informing the taxpayers.
tax 'N' accounts people
Tarun Kumar Gupta
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