NICAI Update
CA Raj Chawla
Quotes of the day:
1. The sunshine in the morning, is so real and warm, it gives a message, for us to stay strong, to face life’s all the test, to prove that we are the best.
2. We can never prove to be good enough for everyone. But we are the best for those who understand us. Everything in the world is Beautiful, depending on our thoughts.
NICAI Update:
1. Supreme Court of India arose from an appeal filed by the Income Tax Department challenging only a limited portion of the judgment delivered by the Gujarat High Court. The appeal was expressly confined to examining the directions issued by the High Court in paragraphs 10 and 11 of its order, which required the Central Board of Direct Taxes (CBDT) to make changes in the income-tax software system. Importantly, the Department did not challenge the substantive relief granted to the assessee on merits.
2. Chairman CBDT has made it clear that the old tax regime is not going away anytime soon even though about 88% individual taxpayers have switched to the new regime. He mentioned that the Indian government is not considering a sunset clause for the old tax regime right now.
3. CBDT chairman noted that the new income tax regime has gained significant traction among individual taxpayers, with about 88 per cent now filing income tax returns (ITRs) under the new tax regime. He also pointed out that taxpayers still have the choice between the two tax regimes, but the transition towards the new tax regime has been quite positive.
4. Pulling out the old tax regime immediately would be premature as it continues to serve taxpayers who claim allowances such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), deductions on interest paid for housing loans. deductions under Chapter VIA like 80C, 80D etc.
5. Delhi High Court disposed of two connected writ petitions raising an identical issue regarding entitlement to interest on delayed refund under the Delhi Value Added Tax Act, 2004 (DVAT Act). The petitioner had filed its DVAT return for the quarter ending 31 March 2009 on 26 April 2009, claiming a refund of ₹2,87,538. An ex parte default assessment order under Section 32 of the DVAT Act was later passed, rejecting the refund claim.
6. The petitioner contended that the assessment order was neither served nor uploaded on the portal. Upon becoming aware of the rejection, the petitioner approached the High Court in 2017. By an order dated 11 April 2018, the Court permitted the petitioner to avail the statutory appellate remedy and left open issues relating to limitation and service of the assessment order.
7. Pursuant thereto, the appellate authority entertained the appeal and, by order dated 8 February 2024, remanded the matter to the assessing authority for fresh consideration after granting an opportunity to produce documents. Following re-examination, the assessing authority sanctioned the refund on 14 August 2024, and the amount was credited to the petitioner’s account on 15 January 2025.
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With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
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