NICAI Update
CA Raj Chawla
Quotes of the day:
1. Beautiful things starts to happen when you distance yourself from negativity.
2. A Good Way to change Someone's Attitude is to Change Our OWN. Because, the same SUN that MELTS BUTTER, also Hardens CLAY. Life is as we Think, so Think Beautifully. Be Positive Always.
NICAI Update:
1. India’s tax administration is quietly
undergoing a structural shift from a system dominated by audits and penalties
to one that relies on behavioural insights, data analytics and voluntary
compliance. The Economic Survey 2025–26 points to the growing use of “nudges”
by the Income Tax Department as a key factor behind improved tax collection
efficiency, reduced litigation and higher taxpayer participation.
2. Drawing from behavioural economics, the Survey argues that timely information and gentle prompts can often achieve better outcomes than coercive enforcement, particularly in a digitally tracked economy.
3. Supreme Court noted that there was an unexplained delay of 358 days in filing the SLP. It further observed that the judgment relied upon by the High Court, on the basis of which the impugned order had been passed, had not been challenged earlier and had attained finality. On these grounds, the Supreme Court dismissed the SLP both on the ground of delay and on merits, thereby affirming the High Court’s decision.
4. Before the High Court, the Revenue had proposed the question of law as to whether the Tribunal erred in allowing deduction under Section 80IA(4) by treating the assessee as a developer rather than a contractor. The High Court recorded that the issue was no longer res integra, as it had already been decided by the same Court in Tax Appeal No. 786 of 2023 for Assessment Year 2008–09, involving the same assessee and based on the same Tribunal order. In that earlier decision, the High Court had dismissed the Revenue’s appeal on identical grounds.
5. Orissa High Court in the matter of
Cordant Engineerings India Private Ltd Vs State Tax Officer The petitioner
challenged an order dated 20 January 2022 passed by the CT and GST Officer,
Bhubaneswar-III Circle, for the tax period April 2019 to March 2020 under
Section 73 of the Central Goods and Services Tax Act, 2017 and the Odisha Goods
and Services Tax Act, 2017. The said order was affirmed by the Appellate
Authority on 5 September 2023. The challenge before the High Court was
primarily premised on the ground that although a statutory remedy of appeal
under Section 112 of the GST Act lies befor
6. The current year has been significant in India’s tax reforms journey. It focused on structural simplification through the new Income tax Act, 2025, bringing greater ease of compliance and boosting consumption by providing tax relief for individual taxpayers. Budget 2026 must carry forward the reforms process to further reduce complexity, enhance certainty, build trust and boost investments. Some areas that need attention are discussed below.
7. Rationalise TDS to simplify compliance and avoid disputes With 37 different types of payments to residents where TDS rates vary from 0.1% to 30%, TDS provisions become a fertile ground for disputes relating to categorisation and interpretation. In many instances, industry faces cash flow blockages awaiting refunds, and the government incurs avoidable interest cost on such refunds.
8. For getting more updates on job vacancies by employers and employees. Kindly join ourpage CA Empanelment Network: https://www.facebook.com/groups/138155389216801
With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
712, New Delhi House
27,Barakhamba Road, New Delhi-110001
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