Page 110 - DTPA Journal December 21
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We recommend that sub-section(3) may be Recommendation: In case the appeal is not
inserted to section 207 to provide that the decided by CIT(A) within the time limit u/s
provisions of sub-section (1) of section 207 250(6A) of the Act, the appeal should be
shall not apply to Hindu Undivided Family deemed to be allowed.
if it does not have any income chargeable Making the aforesaid provisions in the Act will
under the head “Profits and gains of business not in any way bring any adverse result for the
or profession” and the Karta of the HUF is of obvious reason that when there is compulsion
age of 60 years or more. Such provision will under law the Assessing Officer or the CIT(A)
immensely help the HUFs being looked after will definitely take the necessary action within
by senior citizen as its Karta. the stipulated time limit. It will bring a discipline
in the performance of the officers.
19. Taxability of income on notional basis:
21. Exercising of powers u/s 263 of the Act:
The concept of taxability of income on
notional basis either under the head ‘income It is being practically seen that powers u/s
from house property’ or under other 263 are exercised in a routine manner and in
provisions of Income-tax Act should be done spite of detailed submissions or legal
away. Only the actual income received by an requirements, no care is taken by the
assessee should be chargeable to tax. concerned officers. It is necessary that the
provisions should be more specific, duly
Similarly, no disallowance of any expenditure supported by the necessary guidelines for
actually incurred by an assessee as per the exercising the powers under these sections.
method of accounting employed by it should For this purpose, there should also be proper
be made and for this purpose provisions like training and also check within the department
section 43B etc. should be deleted.
so that actions taken are upheld in appeals. It
20. Time limit for carrying out appeal effectby is well known that because of casual
the Assessing Officer orpassing Order by approach of the officers actions taken under
Appellate Authority: above sections in most of the cases fail in
Presently, the Act provides for time limit for appeals. We welcome the amended
completing assessment by the Assessing provisions of sec. 147, 148 and new section
Officer. There is no doubt as regards the legal 148A inserted in Finance Act, 2020.
position that in case the assessment order is 22.Provisions regarding levy of penalty for
not framed within the specific time limit, the under-reporting or mis-reporting of
Assessing Officer cannot make the income: Sec. 270A
assessment order thereafter. Similar should As is well known there had been substantial
be the position in regard to appeal effect. In litigation in respect of provisions of section
case the Assessing Officer does not take the 271(1)(c) of the Act. Provisions of section
necessary action within the stipulated time 270A have been inserted w.e.f. A.Y. 2017-18.
limit, the action will be deemed to have The terms ‘under-reporting’ or ‘mis-
resulted in favour of the assessee and no reporting’ are likely to be subject matter of
adverse order can be passed. Otherwise, litigation. Further, it is also not clear that at
placing time limits for appeal effect, etc. have what stage the Assessing Officer will levy the
not brought any effective result and still the penalty and will determine whether it is a
matters continue to be pending with the case of under-reporting or mis-reporting.
Assessing Officer for quite long time.
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