Direct Tax Vista

Direct Tax Vista – Your Weekly Direct Tax Recap

Edn. 24 | Dated: 20.09.2022

CA Vivek Jalan


In this edition

1. Effort to decriminalize Income Tax Laws – A Balm for taxpayers!

2. CBDT gives “benefit” to taxpayers by issuing Circular 18 of 2022 for TDS u/s 194R! Taxpayers need more!

3. NRIs can now directly make payments for bills on behalf of their families from abroad

4. Liaison office shall not be considered PE incase it is compliant with the RBI guidelines

5. How to prove a claim for ‘Bad Debt’

6. Shares of Holding Company granted as ESOP is an allowable claim u/s.37(1)


Direct Tax Vista – Your Weekly Direct Tax Recap
Edn. 23 | Dated: 13.09.2022

CA Vivek Jalan

In this edition:

1. Indian growth story continues – GST numbers also reflect on Income Tax numbers

2. OECD releases a practical guide to assist tax administrations in designing and carrying out tax capacity building programmes for developing countries

3. Puja Donation is business expenditure

4. Group Companies may work as ‘commissionaires’ of Holding Company which would remain the ‘service providing party’

5. Business expansion expenditure is Revenue in nature

6. Merely because the liability is barred by limitation, it does not cease to be a debt

7. Revised Return post 143(1) has to be accepted

8. RBI assigns Risk Weights for Exposures guaranteed by Credit Guarantee Schemes (CGS)


Direct Tax Vista – Your Weekly Direct Tax Recap

Edn. 22 | Dated: 06.09.2022

CA Vivek Jalan

In this edition:

1. Powers of the ED for search & seizure under PMLA

2. Doctrine of unjust enrichment applies even to the Revenue Authorities; Filing of ITR is a ‘deemed intimation’ incase ITR is not processed in time

3. RBI’s digital lending norms and data privacy concerns

4. The assessment made u/s 153A would only be made on the basis of seized material even though Section 153A does not say so specifically.

5. The delivery of a service via technological means does not make the service technical


Direct Tax Vista – Your Weekly Direct Tax Recap

Edn. 21 | Dated: 30.08.2022

CA Vivek Jalan

In this edition:

1. Deduction of writing off of an advance is available only incase write off is “on sound and reasonable basis”

2. Merely because an expense results in enduring benefit would not make it capital in nature

3. Penalty cannot be imposed without mentioning the specific charge/guilt

4. ‘Interest’ paid by assessee to the Dept. is a ‘debt’ in the hands of the department. Hence Interest on this debt needs to be paid and it cannot be coloured as ‘interest on interest’

5. Substantive law, no retrospective application

6. Big Changes made by RBI in Overseas Investment Rules and Regulations


Direct Tax Vista – Your Weekly Direct Tax Recap

Edn. 20 | Dated: 23.08.2022

CA Vivek Jalan

In this edition:

1. Investigation Units in both Income Tax and GST, Issue Instructions with mandate to field officers for ‘strict compliance’

2. Corporate Guarantee extended to an AE is an “International Transaction”

3. A decision on a debatable point of law is not a mistake apparent from the record and not subject to rectification u/s 154

4. Companies Be Alert! In addition to Income Tax & GST – Now ROC to Physically verify premises also

5. CBDT amends rule 128 and relaxes conditions for filing of form no. 67 for claiming Foreign Tax Credit vide Notification No. 100/2022-Income Tax

6. RBI clarifies that it is not against privatization of public sector banks

7. Marketing and Corporate Branding Expenditure – Allowable u/s 37

8. Non-residents having no PE in India exempted from section 206C(1G) TCS

9. New IT Rule 40G/ Form 29D for Refund u/s 239A of Incorrect TDS u/s 195

10. Rule 17/ Form 10 amended to allow accumulation of income by S. 10(23C) entities


Direct Tax Vista – Your Weekly Direct Tax Recap

Edn. 19 | Dated: 16.08.2022

CA Vivek Jalan

In this edition:

1. Statement by a data entry operator is not a ‘reason to believe’ for re-opening

2. Trusts, NGOs, NPOs, Schools/Colleges, Hospitals, etc to start maintaining extensive books of Accounts

3. There cannot be two different yardsticks for the same set of sale transaction made by five co-owners

4. Bilateral Netting of Qualified Financial Contracts – Amendments to Prudential Guidelines

5. If a particular relief is legitimately due to an assessee, the authorities cannot circumscribe it by creating such circumstances leading to its denial

6. Interest on refund mandatory even when it is on “interest deposit”

7. Site Eviction charges would fulfill the test laid down u/s 37(1)

8. Relatives as defined under the Senior Citizens Act is not to be treated at par with ‘relative’ under the Income Tax Act

9. No Personal hearing, no draft assessment along with show cause notice as required under section 144B(1) and section 144B(7): Faceless Assessment Order is invalid.


Direct Tax Vista – Your Weekly Direct Tax Recap

Edn. 18 | Dated: 09.08.2022

CA Vivek Jalan

In this edition:

1. Faceless assessment: Fresh SOPs issued to address taxpayers’ conflicts

2. Even NIL Income is disclosure of income

3. Cash payment for ‘business necessities’ cannot be disallowed arbitrarily

4. CBDT issues conditions, forms to get income tax exemption on covid 19 help money

5. No TDS u/s 195 for purchase of software product – There is a clear distinction between “Copyright” and “Copyrighted Article”

6. Transfer Pricing BLT as an approach is not permissible for undertaking any addition on account of AMP expenses

7. Premature redemption under Gold Monetisation Scheme payable only in rupees: RBI

8. 2022-23 looks bright for manufacturers as well as Service Companies as per RBI.