Tax Hotline
July 24, 2001
Section 14A of Income Tax Act, 1961 (“ITA”) to apply to new cases only.

The Indian Finance Act, 2001 inserted section 14A to the ITA that is to have retrospective effect from April 1, 1962. Section 14A of the ITA provides that “no deduction should be allowed in respect of expenditure incurred by the taxpayer in relation to the income which did not form part of the total income under the ITA”.

The Central Board of Direct Taxes, India has issued a circular stating that where the income tax proceedings stand completed as on April 1, 2001, shall not be reopened under section 147 of the ITA, as such opening of cases would create hardships upon the taxpayers.

 
 

Source: Economic Times, July 24, 2001

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

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Tax Hotline

July 24, 2001

Section 14A of Income Tax Act, 1961 (“ITA”) to apply to new cases only.

The Indian Finance Act, 2001 inserted section 14A to the ITA that is to have retrospective effect from April 1, 1962. Section 14A of the ITA provides that “no deduction should be allowed in respect of expenditure incurred by the taxpayer in relation to the income which did not form part of the total income under the ITA”.

The Central Board of Direct Taxes, India has issued a circular stating that where the income tax proceedings stand completed as on April 1, 2001, shall not be reopened under section 147 of the ITA, as such opening of cases would create hardships upon the taxpayers.

 
 

Source: Economic Times, July 24, 2001

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

NDA Connect

Connect with us at events, 
conferences and seminars.