NICAI Update
CA Raj Chawla
Quotes of the day:
1. Patience and Silence are Powerful Energies. Patience Makes you Mentally Strong. Silence Makes you Emotionally Strong .Be Strong & Healthily.
2. Everything that God allows to come our way is with a purpose. He uses even the greatest error & the deepest hurt to mould us into a person of worth & value.
NICAI Update:
1. Bombay High Court directs the CBDT/ DGIT (Systems) to modify the ITR utility to permit the Assessee’s preferred mode of set-off STT-paid short term capital losses against Non-STT paid short term capital gains in terms of Section 70(2) before the expiry of the revised return deadline; Tribunal also directs the Revenue to accept and process the Assessee’s revised return in paper form as a valid return under Section 139(5);
2. ITAT rejects Revenue’s contention that Assessee’s claim could be examined during assessment proceedings and that modifying the utility or permitting a paper return would be unnecessary and emphasized the statutory scheme of income tax Act mandates the Assessee to compute income and make claims at the stage of filing the return itself;
3. Tribunal reiterates that the purpose of e-filing and standardized utilities is procedural convenience and uniformity, not substantive denial of statutory rights; Relies on coordinate bench judgment in Samir Narain as well as Lupin Limited to holds that an Assessee cannot be barred by technical or systemic constraints from raising a bona fide claim in the return of income; During AY 2025-26,
4. Assessee earned short term capital gain from equity transactions on which STT was paid as well as non-STT paid transactions, however, income tax utility first adjusted STT paid loss against STT paid gains as against Assessee’s set off STT-paid short term capital losses against Non-STT paid short term capital gains as mandated under Section 70(2);
5. ITAT also relies on SC judgment in Goetze (India) and observes that is a claim is not made in the Assessing Officer cannot entertain it later, except through a revised return; Thus, ITAT opines that preventing an Assessee from making a claim at the return-filing stage effectively forecloses the entire assessment and appellate mechanism, thereby reinforcing the principle that procedural mechanisms cannot override substantive tax rights and allowing Assessee’s writ petition.
6. For CA professional updates and empanelment-related notifications, join CA Empanelment Network: https://www.facebook.com/groups/1381553892168021
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
Ph. Off. 011-43581083
Cell: 98110-81083