ITAT imposed costs on revenue for causing harrasment to assessee in recovery proceedings

0 comments Friday, June 10, 2011
 The Pune ITAT has imposed costs on the revenue for causing harrasment to the assessee in recovery proceedings in a case namely Shramjivi Nagari Sahakari Pat Sanstha V ACIT. The bank account of assessee was attached even before the communication of CIT(A)'s order to the assessee. This is an important order as it is generaly seen that the department ussualy adopt coercive measures for recovery proceedings, I hope the department take some lesson from this order.
Facts: The assessee, a credit co-operative society, contravened s. 269SS & 269T because of which penalty u/s 271E was levied. The CIT(A) confirmed the levy of penalty. Before service of the CIT(A)’s order, the assessee’s bank account was attached u/s 226(3). The assessee filed a stay application and claimed that as the assessee had to bear costs owing to the illegal action of the AO, costs had to be awarded to it. HELD upholding the assessee’s plea:

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AO is not suo moto bound to supply reasons for reassessment under Income Tax Act -Delhi HC

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The Delhi High Court in an important case namely CIT V Safetag International India Pvt Ltd. has held that in case of reassessment proceedings u/s 147 of Income Tax Act if the assessee doesnot demand reasons recorded by AO for reopening of case then AO is not bound to supply the same suo moto to the assessee. 

 
Brief Facts: The assessee’s assessment was reopened u/s 147. The assessee did not ask for the recorded reasons. Even before the CIT(A), though the assessee challenged the reopening as being without jurisdiction, it did not ask for the reasons. Before the Tribunal, the assessee claimed that it was not aware that it could demand the reasons and object thereto. Pursuant thereto the Tribunal remitted the case to the AO with direction that the reasons & opportunity to object be provided and denovo assessment be framed if objections were rejected. On appeal by the department, the appeal was allowed:

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Lawyers will be able to practice in all courts through out India soon-Veerappa Moily

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Indian lawyers will be able to practice in all courts and tribunals across India irrespective of which bar council they are enrolled in, after law minister Veerappa Moily said he would notify long-pending section 30 of the Advocates Act 1961. The notification is expected to be issued either on 7th or 8th June.

Section 30 of the Act states:

Subject to provisions of this Act, every advocate whose name is entered in the State roll shall be entitled as of right to practice throughout the territories to which this Act extends,-
(i) in all courts including the Supreme Court;
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PUNJAB SMALL TRADERS BOARD SEEKS EXEMPTION IN VAT REGISTRATION LIMIT UPTO Rs 10 LAC

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 The Punjab Small Traders Board today sought Rs 10 lac Value Added Tax (VAT) exemption for both manufacturers and retailers under Punjab VAT Act. 

          Holding a meeting with Financial Commissioner S. S. Brar and Excise and Taxation Commissioner Mr A. Venu Prasad, delegation of Small Traders Board, Punjab led by Chairman Baba Ajit Singh raised the issue of exemption up to Rs 10 lac on VAT Registration for both manufacturers and retailers. 
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