Page 61 - Corporate_Professional_Today

Weekly reVieW
ITAT held that it was noted that assessee
did not obtain permission of the RBI under
rule 47 of the Foreign Exchange Management
(Acquisition & Transfer of Immovable Property
in India) Regulations, which prohibits acquisition
of agricultural land by an NRI. Moreover,
assessee had levelled said land and enhanced
its saleability that was also an indication of
his intention to resell land even when he
had purchased it.
Therefore, sale of land amounted to ‘adventure
in nature of trade’ and, thus, profit arising
from said transaction was to be brought to
tax as business income.
Assessee’s plea that investment in
property was from ‘Stridhan’ was to
be accepted as his wife was regular
taxpayer
Azad Bansal v. ITO [2017] 88 taxmann.com
323 (Delhi - Trib.)
Assessing Officer (AO) asked assessee to
explain investment of ` 15 lakhs in purchase
of house property. Assessee submitted that
house was purchased in joint name along
with his wife and payment of ` 15 lakhs
was made in cash and assessee had paid
only ` 7.5 lakhs from available sources
and remaining 50 per cent was paid by his
wife. However, AO treated full amount of
` 15,00,000 as unexplained investment.
Delhi ITAT held that assessee’s wife was a
taxpayer for over 5 years and she acknowledged
that she gave her entire life time savings
including Stridhan. Since wife submitted that
she contributed ` 7.50 lakhs from her past
savings said submission was to be accepted
by AO.
Statutory Changes
CBDT to intimate about proposed
income/loss adjustments prior to
issuing intimation u/s 143(1)
168 January 20 To January 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 41 u 62
CIRCULAR NO. 1/2018 [F.NO.225/333/2017-
ITA.II], DATED 10-1-2018
Clause (vi) of section 143(1)(a) of the Income-
tax Act, 1961 provides that while processing
of return, the total income or loss shall be
computed after making adjustment of income
appearing in Form 26AS or Form 16A or
Form 16 which has not been included in
computing the total income in the ITR.
The Central Board of Direct Taxes (CBDT)
had issued instruction No.(s) 9/2017 dated
11-10-2017 and 10/2017 dated 15-11-2017
for instances in which section 143(1)(a)(vi)
may be invoked on the basis of information
contained in the ITR Forms 1 to 6.
Since section 143(1)(a)(vi) is being applied for
the first time while processing the returns, it
has been decided by CBDT that before issuing
an intimation of the proposed adjustment,
initially an awareness campaign would be
carried out to draw the attention of the
taxpayers to such differences.
This would be in form of an e-mail and SMS
communication to the concerned taxpayer
informing him about the variation in the tax-
return vis-a-vis the information available in
ITR forms and requesting him to respond to
the variation within one month of receiving
the communication electronically.
In case the taxpayer fails to respond within
the available time-frame or the response is
not satisfactory, a formal intimation u/s.
143(1)(a)(vi) proposing adjustment to the
returned income would be issued to him. If
no response is received from the taxpayer
within thirty days of issuance of such an
intimation, the proposed adjustment shall be
made to the returned income.
If the taxpayer fully agrees with the proposed
adjustment then he is required to file a revised
return upon receiving the awareness message
or formal intimation u/s 143(1)(a)(vi).
CBDT comes down heavily on
benami properties; attaches
properties worth over ` 3500 crore