IDT Amendments – June 23 & Dec 23 1

INDEX
Chapter Chapter Name Page
Number Numbers
2 Basics of Goods and Services Tax 02
4 Input Tax credit and computation of GST 03
Liability
5 Procedural Compliance under GST 04

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IDT Amendments – June 23 & Dec 23 2

Chapter 2 Basics of GST

❖ Schedule II : It lists activities which are to be treated as supply of goods and Supply of
Services
1. Supply by unincorporated association (Omitted) : Supply of goods by any
unincorporated association or body of persons to a member thereof for cash
, defer red payment or other valuable consideration

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Chapter 4 Input Tax credit and computation of GST Liability

❖ Section 16- Eligibility & Conditions to obtain ITC :

1. Time limit for availing ITC :

ITC Pertaining to particular FY can be availed by 30 th November of next FY or
Filling of annual return whichever is earlier

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Chapter 5 Procedural Compliance under GST

❖ Persons liable for Registration [Section 22] :

1. Limit of 40 Lakhs is not available to :

I. persons engaged in making supplies of ice cream and other edible ice,
,Pan masala and all goods of Chapter 24, i.e. Tobacco and manufactured
Tobacco substitutes
a) Fly ash bricks or fly ash aggregate with 90% or more fly ash
content; Fly ash blocks
b) Bricks of fossil meals or similar siliceous earths
c) Building bricks
d) Earthen or roofing tiles

❖ Sub rule 4A substituted :

1. Application made in GST REG – 01 shall be followed by :

I. If opted for Aadhar authentication → biometric-based Aadhar
authentication and taking photograph or
OR
II. Not opted for Aadhar authentication → taking biometric information
, photograph and verification of such other KYC documents

along with the verification of the original copy of the documents uploaded
with the application in FORM GST REG-01 at one of the Facilitation centres
notified by the Commissioner and the application shall be deemed to be
Complete only after completion of the process laid down.

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❖ Cancellation or Suspension of Registration [Section 29] :

E-Invoicing :
1. Basics :

❖ All registered businesses with an aggregate turnover (based on PAN) in any preceding
onwards > than Rs. 10 crore (hereinafter referred to as ‘notified persons’)
Will be required to issue e- invoices.

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2. Dynamic QR Code :
The Aggregate Turnover limit for Dynamic QR Code to be issued for B2C customers
Remains the same as ATO exceeding Rs. 500 Crore. The dynamic QR code, on the other
hand, will have the payment details and thus ‘scan and pay’ in one go is possible

3. Few Clarifications-

Dynamic QR Code is not applicable to :

I. Where the supplier of taxable service is :
♦ an insurer or a banking company or a financial institution, Including
a non- banking financial company;
♦ a goods transport agency supplying services in relation to transportation
of goods by road in a goods carriage;
♦ supplying passenger transportation service;
♦ supplying services by way of admission to exhibition of cinematograph
in films in multiplex screens
♦ Person having UIN is not considered as registered person → So supply to UIN
Is B2C → Therefore Dynamic QR Code is required.

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Declaration in return

Credit Note Issued

Debit note Issued

Return for the month in which

Return for the month in
Cr. note was issued but
which Dr. note was issued

Not later than 30th November after FY or Date of

annual return (earlier of two)

❖ Rule 138E added regarding generation of E-Way Bill :

E-Way Bill can’t be generated for

♦ A composition levy buyer if he has not furnished GST CMP-08 for
2 consecutive quarters or
♦ Normal registered person if he has not furnished returns (GSTR 3B)
etc. for a consecutive period of 2 tax periods or
♦ Any Normal registered person has not furnished the statement of outward
(GSTR 1) for any two months or quarters, as the case may be
♦ being a person, whose registration has been suspended
But Commissioner on receiving application in FORM GST EWB-05 allow generation
of E-Way Bill in FORM GST EWB-06
Blocking of GSTIN for e-way bill generation facility is only in respect of any outward
movement of goods of the registered person who is ineligible for e-way bill
Generation as per rule 138E. E-way bills can be generated in respect of
inward supplies received by said registered person

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Example - Mr. A, a registered person paying tax under regular scheme in Delhi, has
Not filed Form GSTR-1 for last 2 months. Mr. B Haryana,(a regular return filer) wants to
Generate an e-way bill for goods to be supplied to Mr. A. As per earlier position of law Mr. B
would not have been able to generate e-way bill with Mr. A’s GSTIN In terms of the
amended position of law, there will be no more restriction in generating e-way bill as Mr. B
who is making outward movement of goods is a regular return filer.

Mr. A wants to generate an e-way bill in respect of an outward supply of goods to

Mr. H. E-way bill generation is blocked in this case as it’s an outward movement of
Goods of Mr. A who has not filed GSTR-1 for past 2 months.

❖ Section 37 – For GSTR-1 :

♦ In GSTR-1, on discovery of any error or omission, rectify till

30th November after year end
Or
Furnishing of the relevant annual return, whichever is earlier.

♦ A registered person shall not be allowed to furnish the details of

outward supplies under sub-section (1) i.e. GSTR-1 for a tax period
, if the details of outward supplies for any of the previous tax
Periods has not been furnished by him.

❖ Section 39 – For GSTR – 3B :

♦ Provide an option to the persons to
pay either the self-assessed tax i.e. output tax – input tax
Or
an amount that may be prescribed

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♦ In GSTR-3B, on discovery of any error or omission, rectify till

30th November after year end Or
or furnishing of the relevant annual return, whichever is earlier
With payment of applicable interest.
❖ Section 49 :
Sub section 10 :
A Registered Person may transfer any amount of tax, interest
penalty, fee or any other amount available in the electronic cash ledger
under this Act, to the electronic cash ledger for,––
♦ integrated tax, central tax, State tax, Union territory tax or cess; or
♦ integrated tax or central tax of a distinct person as specified in subsection
(4) or, as the case may be, sub-section (5) of section 25,

and such transfer shall be deemed to be a refund from the electronic cash ledger under
This act :
Provided that no such transfer under clause (b) shall be allowed if the said
Registered person has any unpaid liability in his electronic liability register.

❖ Refund of tax [Section 54]

a. A person may make an application within Relevant Date + 2 years

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Case Relevant Date

goods are exported by air /
sea
goods are exported by land
In case of services exported out
of India where a refund of tax
paid is available
Date on which the vessel leaves India
Date on which the goods pass the
frontiers
Date of receipt of payment in convertible foreign
exchange or in Indian rupees wherever permitted by
the Reverse Bank of India

refund of unutilized ITC in case of zero- End of the Financial Year in which such claim for
rated supplies (Exports & SEZ) refund arises

In case of zero-rated supply of goods or Due date for furnishing of return under section 39
services or both to a Special Economic Zone (GSTR-3B)in respect of such supplies
developer or a Special Economic Zone unit
where a refund of tax paid is available in
respect of such supplies themselves, or as the
case may be, the inputs or input services used
in such supplies
refund of unutilized ITC in case of Due date for furnishing of return under section 39
inverted duty structures is claimed for the period in which such claim for refund arises

refund arising out of finalization Date of adjustment of tax after the

of provisional assessment final assessment
Any other case Date of payment of tax

b. Any balance in the electronic cash ledger or electronic credit ledger after payment
of tax, interest, penalty, fee or any other amount payable may claim such refund
In the return furnished under section 39.
c. Persons to whom UIN is issued (UNO, any Multilateral Financial Institution etc.
→ make an application → Supply Received → Quarter end + 2 years

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GST Returns

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DT Amendments – June 23 & Dec 23 CS Executive

INDEX
Chapter Number Chapter Name Page Numbers
2 Residence and Scope of Total Income 02
4 Income under the head Salaries 04
6 Profits & gains of business or profession 05
7 Capital Gains 07

8 Income from other sources 08

10 Set Off & Set Off & Carry Forward of Losses 12
11 Deductions from Gross Total Income 15
12 Return Filing, PAN , SAT , Refund 17
13 Advance Tax – TDS & TCS 24
14 Various Entities 30
15 Taxation of Various Entities 37
16 Assessment, Appeals, Revisions & Penalties 39

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Chapter 2 Residence & Scope of Total Income

❖ Cash Credits (Section 68) :

Cash Credit Found in Books

No Explanation Offered Explanation not Satisfactory

Will be treated as income of Will be treated as income of

assessee assessee

Amendment Addition :

Assessee is Closed held company

Received share application Money, Premium etc.

Amount will be considered as income unless

Assessee who gave money such explantion be Exception (No

to company also given satisfactory to the Black Money
explanation officers Considered):

Money received from venture capital or venture capital

company

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❖ Tax Rates :
Types of person Tax Rates
1. Domestic Companies A domestic company, whose Gross Turnover
or gross receipt in the previous year 20-21
does not exceed Rs. 400 crore, Shall be
taxable at rate of 25% for Assessment year
2023-24
a. 30% of total Income in all other cases

2. Surcharge For Domestic Company/Co-operative society

a. up to Rs. 1 Crore - No Surcharge

b. > Rs. 1 crore up to Rs. 10 crore – 7%
c. > Rs. 10 crore – 12%

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Chapter 4 Income from Salaries

❖ Tax Free Perquisites :

The value of the following perquisites is not to be included in the salary income of an
employee:
(i) Medical Facilities
Reimbursement - in respect of any illness relating to COVID-19 subject to
The Central Government. AY 23-24

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Chapter 6 Profit & Gains from Business and Profession

❖ Other Expenses (Section 37) :

Explanation 3

“Expenditure incurred by an assessee for any purpose which is an offence or which is

prohibited by law” under Explanation 1, shall include and shall be deemed to have always
included the expenditure incurred by an assessee

for any purpose which to compound an to provide any benefit or

is an offence under, or
which is prohibited by,
any law for the time
being in force, in India
or outside India; or
offence under any perquisite, in whatever form,
law for the time to a person, whether or not
being in force in carrying on a business or
India Or outside exercising a profession, And
India. acceptance of such benefit
or perquisite by such person
is in violation of any law

❖ EXPENSES DISALLOWED (SECTION 40) :

Any sum paid on account of income-tax (Includes Cess & Surcharge by whatever Name
Called

❖ Disallowance of unpaid statutory liability (Section 43B) :

a. Where there is default in the payment of such interest, such interest can be converted
To a loan. Such conversion of the unpaid interest in to loan or debenture or any other
instrument by which the liability to pay is deferred to a future date, by itself
Does not constitute the payment, for purposes of Section 43B. This shall
be allowed proportionately, as and when these are paid.

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It must also be noted that where the assessee has not paid any tax, duty, Cess, or fee
by whatever name called, under any law for the time being in force, or any sum payable
by the assessee as an employer by way of contribution to Provident / Super-annuity
/ Gratuity fund, on or before the “due date” but if he deposits such sums before the for
Due date for furnishing the return u/s 139(1), no disallowance can be made u/s 43B.

Any sum payable by way of tax, duty, cess or fee.

Any sum payable as an employer by way of contribution to any PF or superannuation

fund or gratuity fund etc.

Any sum payable to an employee as bonus or commissions for services redndered.

Any sum payable as interest on any loan or borrowing from any public financial
institution or a State financial corporation or a State industrial investment corporation.

any sum payable by the assessee as interest on any loan or borrowing from a deposit
taking non-banking financial company or systemically important non-deposit taking
non-banking financial company, in accordance with the terms and conditions of the
agreement governing such loan or borrowing

Any sum payable as interest on any loan or advance from a scheduled bank or co-
operative bank.

Any sum payable as an employer in lieu of any leave at the credit of his employee.

Any sum payable to the Indian Railways for use of Railway assets.

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Chapter 7 Capital Gains

❖ “cost inflation index” for the Financial year 2022-23 is 331

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Chapter 8 Income from other sources

❖ Only & only specified movable properties are taxable under IOS (JADA–SP-SB)VDA :::

a. Jewellery
b. Archaeological structures
c. Drawings
d. Any work of art
e. Sculptures
f. Paintings
g. Shares
h. Bullions
i. Virtual Digital Assets

❖ Receipts exempted from the applicability of section 56(2)(x) :

Any sum of money or value of property received

a. from b. on the c. under d. in e. from g. from

any occasion f. from any
a will or contempl any any
Relativ of the fund or
by way ation of Local registered
e; or Marriage University
of Death of authorit Trust or
of the or other
Inheritan the payer y; or institutio
individual educational
ce; or or donor, n
; or institution
as the or hospital
case may or other
be; or medical
institution
or any
trust or
institution;
or

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For Point(f) & (g) above the gifts will be taxable if they are received from -

For Point(f) & (g) above the gifts will be taxable if they are received from

a. the author d. any

b. any person c. where such cc. any e. any
of the trust relative of
who has made author, trustee of concern in
or the any such
a substantial founder or the trust or which any of
founder of author,
contribution to person is a manager (by the persons
the founder,
the trust or Hindu whatever referred to in
institution; person,
institution, undivided name called) clauses (a),
member, (b), (c),
that is to say, family, a of the
trustee or (cc) and (d)
any person member of institution;
manager as has a
whose total the family;
aforesaid; substantial
contribution
up to the end interest.
of the
relevant
previous year
> 50,000 rs.;

h. by any fund or trust or institution or any university or other

or other educational institution or any Hospital or other medical institution or
i. by an individual, from any person, in respect of any expenditure actually
incurred by him on his medical treatment or treatment of
any member of his family, for any illness related to covid 19
for any illness related to COVID-19 (Inserted w.e.f 1.4.20)
j. by a member of the family of a deceased person—
by a member of the family of a deceased person—
from any other person or persons to the extent that sum sum
or aggregate of such sums does not exceed 10 Lakh Rs.
where the cause of death of such person is illness related to

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COVID-19 and the payment is received within 12 months from

The date of death of such person
(Family means – Spouse, Children and Dependent Parents, Brother & Sister)

❖ Sec 115BBH - Tax on income from virtual digital assets :

Tax rate on Virtual Digital Assets – 30 %

No deduction in respect of any expenditure (other than cost of acquisition, if any) or

allowance or set off of any loss shall be allowed to the assessee under any provision
of this Act in computing the income referred to in clause (a) of sub-section (1);
and

no set off of loss from transfer of the virtual digital asset computed under clause
(a) of sub-section (1) shall be allowed against income computed under any provision
of this Act to the assessee and such loss shall not be allowed to be carried forward
to succeeding assessment years.

For the purposes of this section, the word "transfer" as defined in

clause (47) of section 2, shall apply to any virtual digital asset, whether capital asset
or not.

❖ Where total income including Capital Gains referred to in section 111A,112 and 112A &
Dividend :
1. Does not exceed Rs. 50 lakhs No surcharge
2. Exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore 10% surcharge on income tax
3. Exceeds Rs. 1 crore but does not exceed Rs. 2 crores 15% surcharge on income tax

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4. Exceeds Rs. 2 crores

a. On tax computed on Capital Gains under section 111A,112 &112A &Dividend
b. On tax computed on 15%

Total Income - Capital Gains under section 111A,112 &112A & Dividend

❖ If Total Income - Capital Gains under section 111A,112 &112A & Dividend
1. is up to Rs. 2 crores 15%
2. is above Rs. 2 crores but up to Rs. 5 crores 25%
3. Above Rs. 5 crores 37%

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Chapter 10 Set off & Carry forward of losses

❖ Carry forward and set of “losses” in case of eligible start-up [Section 79(b)] :
This section is applicable if following conditions are satisfied:

• The assessee is a company in which public are not

substantially interested.
conditions
• It is an eligible start up referred u/s 80-IAC.

In case of such company the losses of such companies can be carried

forward and set-off if

“Minimum 51% shareholders
having voting powers shall be
the same as on the last day of
the PY in which the loss was
incurred “&” on the last day of
the PY in which the loss is to
be adjusted against the profit.”
the loss incurred in any year prior to the previous year shall
be allowed to be carried forward and set off against the
income of the previous year if all the shareholders of such
company who held shares carrying voting power on the last
day of the year or years in which the loss was incurred,
continue to hold those shares on the last day of such
previous year and such loss has been incurred during the
period of seven years beginning from the year in which such
company is incorporated.

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Note – However, the benefit of set-off will not be denied if the change in voting power is
due to :

Death of a Shareholder

Due To
transfer of shares by way of gift to
any relative
makingof such
the shareholder
gift.
However, the benefit Change in shareholding takes
However the benefit

of set-off will change

not be place due to the Insolvency
Bankruptcy code. &
denied if the
in voting power is
Erstwhile public sector company subject to the condition that the

ultimate holding company of such company, after the completion of

strategic disinvestment, continues to hold, directly or through its
subsidiary or subsidiaries, at 51% cent of the voting power of such
company in aggregate.]

Strategic Divestment means - which results in reduction of its shareholding to below 51%
Along with transfer of control to the buyer.
If the above condition is not complied with in any previous year after the completion of
strategic disinvestment, the provisions of sub-section (1) shall apply subsequent for such
Previous year and subsequent previous years i.e. the losses will lapse.

❖ New Section – 79A :

Notwithstanding anything contained in this Act, where consequent to a Search under section
132 or
a requisition under section 132A or
a survey under section 133A

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the total income of any previous year of an assessee includes any undisclosed income,
no set off, against such undisclosed income, of any loss, whether brought forward or
otherwise, or unabsorbed depreciation under sub-section (2) of section 32, shall be allowed to
The assessee under any provision of this Act in computing his total income for such previous year.

❖ Explanation For the purposes of this section, the expression “undisclosed income”
Means :

1. any income of the previous year represented, either wholly or partly, by any money,
jewelry or other valuable article or thing or any entry in the books of account or
other documents or transactions found in the course of a search under section 132 or
a requisition under section 132A or a survey under section 133A which has,—

a. Not been recorded on or before the date of search or requisition or survey, as the case may be,
in the books of account or other documents maintained in the normal course relating to such
previous year; or

b. Not been disclosed to the Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner before the date of search or requisition or survey, as the case may
be; or

2. any income of the previous year represented, either wholly or partly by any entry in
of an expense recorded in the books of account or Other documents maintained in the
normal course relating to the previous year which is found to be false and which would
not have been found to be so, had the search not been initiated or the survey not been
Conducted or the requisition not been made.

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Chapter 11 Deductions

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❖ Section 80 IAC :

• 100% of the profit and gains derived from such business for 3
consecutive assessment years option of the assessee out of 10 years
beginning from the year in which the eligible start-up is
1. Permissible
incorporated
Deduction

• AY 23-24 t is incorporated on or after the 1st day of April, 2016

but upto 31st march 2023
2. Eligibale Start up

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Chapter 12 Return Filing

❖ Mandatory Filling of Return of Income Section 139(1) :

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❖ UPDATED RETURN OF INCOME [SECTION 139(8A)] :

1. Option to furnish updated return: Any person may furnish an updated return of his
Of any other person in respect of which he is assessable, for the previous year relevant to the
Assessment year at any time within 24 months from the end of the relevant assessment

This is irrespective of whether or not he has furnished a return under section 139(1) or
Belated return under section 139(4) or revised return under section 139(5) for that assessment
Year
For example, an updated return for A.Y. 2023-24 can be filed till 31.3.2026.
2. Non applicability of the provisions of updated return: The provisions of updated return
would not apply, if the updated return of such person for that assessment year :

is a loss return; or

has the effect of decreasing the total tax liability determined on the basis of return
furnished under section 139(1) or Section 139(4) or section 139(5); or

results in refund or increases the refund due on the basis of return furnished under
section 139(1) or section 139(4) or section 139(5)

3. Updated return can be filed if original return is a loss return and updated return
is a return of income: ( Loss to Income )

If any person has a loss in any previous year and has furnished a return of loss on or before
the due date of filing return of income under section 139(1), he shall be allowed to furnish
an updated return if such updated return is a return of income

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For example, : if Mr. X has furnished his return of loss for A.Y. 2022-23 on 31.5.2022
consisting of ` 5,00,000 as business loss, he can furnish an updated return for A.Y. 2022- 23
31.3.2025, if such updated return is a return of income.

4. Updated return to be furnished for subsequent previous year in case (3) above :

If the loss or unabsorbed depreciation is to be reduced for any subsequent previous year
as a result of furnishing of updated return of income for a previous year, an updated
Return is required to be furnished for each such subsequent previous year.

5. Circumstances in which updated return cannot be furnished:

No updated return shall be furnished in the following scenarios –

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❖ TAX ON UPDATED RETURN [SECTION 140B] :

Payment of tax, additional tax, interest and fee before furnishing updated return
Of Income :

1. In a case where no return is furnished earlier [Section 140B (1)]:

1. Tax to be paid along with interest and fee before furnishing of updating return:
Where no return of income under section 139(1) or 139(4), liable to pay such tax
Together with interest and fee along with the Payment of additional income-tax computed
Under section 140B (3), before Furnishing the return.

2. Manner of computation of tax payable on the basis of updated return

The tax payable is to be computed after taking into account the following -
a. the amount of tax, if any, already paid as advance tax;
c. any relief of tax claimed under section 89
d. any relief of tax or deduction of tax claimed under section 90 or section
91 on account of tax paid in a country outside India;
f. any tax deducted or collected at source;

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g. any relief of tax claimed under section 90A on account of tax paid in
specified territory outside India referred to in that section; and
h. any tax credit claimed to be set off in accordance with the provisions
of section 115JAA or section 115JD.(AMT/MAT Credit)
i. Interest under section 234A if no earlier return has been furnished

In a case, where no earlier return has been furnished, the interest payable under section
234A has to be computed on the amount of the tax on the total income as declared in
The updated return under section 139(8A), in accordance with the provisions of section
140A (1A).

2. In a case where return is furnished earlier [Section 140B (2)]

1. Tax to be paid along with interest before furnishing updated return:

Where, return of income under section 139(1) or 139(4) or 139(5) has been furnished by
By an assessee and tax is payable, on the basis of updated return under section 139(8A),
Would be liable to pay such tax together with interest payable along with the
Payment of additional Income-tax computed under section 140B (3) (as reduced
By the amount of interest Paid under the provisions of this Act in the earlier return)
Before furnishing the return

2. Manner of computation of tax payable on the basis of updated return:

The tax payable has to be computed after taking into account the following –
a. the amount of relief or tax referred to in section 140A(1), the credit for
Which has been taken in the earlier return; (Earlier Advance Tax,TDS,TCS Etc.)
b. Tax deducted or collected at source, in accordance with the provisions of
Chapter XVII-B, on any income which is subject to such deduction or collection
and which is taken into account in computing total income and which

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has not been included in the earlier return;

c. Any relief of tax or deduction of tax claimed under section 90 or section
91 on account of tax paid in a country outside India on such income
which has not been included in the earlier return;
d. Any relief of tax claimed under section 90A on account of tax paid in any
specified territory outside India referred to in that section on such income
which has not been included in the earlier return;
e. Any tax credit claimed, to be set off following the provisions of sections
115JAA or section 115JD, which has not been claimed in earlier return
(AMT/MAT Return)
The aforesaid tax would be increased by the amount of refund, if any issued in respect
Of such earlier return

3. Interest under section 234B/234Cwhere earlier return has furnished

[Section 140B(4)] :
Will cover in Chapter – TDS/TCS/Advance Tax

❖ INTEREST FOR DEFAULT IN FURNISHING RETURN OF INCOME [SECTION 234A] ::

Furnished after the due date or is not furnished

Pay simple interest at the rate of 1% per cent for every month or part of the month

On the total income as determined as per 143(1) or on the total income determined
under regular assessment reduced by an amount of –
a. advance tax if paid
c. any TDS/TCS;
e. relief under Sections 89
g. relief under Sections 90, 90A

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i. any deduction under Sections 91

l. any tax credit under the provisions of Section 115JD (AMT Credit)

In this sub-section,—
"tax on total income as determined under sub-section (1) of section 143" shall
not include the additional income-tax, if any, payable under section 140B or section 143” and

“tax on the total income determined under regular assessment shall not include the
additional income-tax payable under section 140B.]”

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Chapter 13 Advance Tax ,TDS & TCS

❖ Section 206AB requires tax to be deducted at source under the provisions of this
Chapter any sum or income or amount paid, or payable or credited, by a person
(deductee) to a specified person, at higher of the following rates :

a. at twice the rate prescribed in the relevant provision of the Act;

b. at twice the rate or rates in force i.e., the rate mentioned
in the Finance Act; or
c. at 5%
However, section 206AB is not applicable in case of tax deductible at source under sections
192, 192A, 194B, 194BB,194N 194-IA, 194-IB, 194LBC, 194M or 194N.

❖ Meaning of “specified person” :

a. A person who has not furnished the return of income

for the assessment year relevant to the previous year immediately preceding the FY
In which tax is required to be deducted, for which the time limit for furnishing the return of
Income under section 139(1) has expired
And
the aggregate of tax deducted at source and tax collected at source in his case is
` 50,000 or more in the said previous year.

❖ Section 194 IA :

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❖ Section 194 R

❖ TDS on payment on transfer of virtual digital asset [Section 194S] [w.e.f. 1.7.2022] :

1. Applicability and rate of TDS:

Section 194S requires any person who is responsible for paying to any resident any sum by way
of consideration for transfer of a virtual digital asset to deduct tax @1% of such sum

2. Time of deduction:
The deduction is to be made at the time of credit of consideration to the account of the resident
Or
At the time of payment of such sum by any mode, whichever is earlier

Where consideration is credited to any account in the books of account of the person such
Liable to pay such sum, such credit of the sum is deemed to be the credit of such sum to the
Account of the payee and tax has to be deducted at source.

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The account to which such sum is credited may be called “Suspense Account” or.
By any other name.

3. Cases where the consideration for transfer of virtual digital asset is wholly in kind or
partly in kind and partly in cash – In a case where the consideration for transfer of
Virtual digital asset is
a. wholly in kind or in exchange of another virtual digital asset where there
Is no part in cash or
b. partly in cash and partly in kind but the part in cash is not sufficient
to meet the liability of deduction of tax in respect of whole of such transfer,

The person responsible for paying such consideration has to before releasing the consideration,
ensure that tax required to be deducted has been paid in respect of such consideration
for the transfer of virtual digital asset.

4. Non applicability of TDS under section 194S –

No tax is required to be deducted under section 194S, where the consideration is payable by
the person referred to in column (2) of the table below and aggregate value of such
consideration during the financial year does not exceed the threshold limit in the
the corresponding row of column (3) of the table below:

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5. Non-applicability of section 203A and 206AB on specified person -

The provisions of section 203A containing the requirement of obtaining TAN and section
206AB requiring higher rate of TDS for non-filers of income-tax return would not be
applicable in case of specified person referred in 4(1) – Indi & HUF

6. Cross application of section 194-O and section 194S -

In case of a transaction where tax is deductible under section 194-O along with the section
Section 194S, then, the tax shall be deducted under section 194S and not section 194-O.

❖ Interest for defaults in payment of advance tax [Section 234B] :

Interest liability if advance tax of an amount less than 90% of assessed tax. (assessed tax
Means the tax on total income determined u/s 143(1)/under regular assessment, as the case m
May be, less TDS & TCS less sec. 89 relief - AMT Credit 115JD) :
In this sub-section, :
In this sub-section,—
a. "tax on total income as determined under sub-section (1) of section 143"
shall not include the additional income-tax, if any, payable under
section 140B or section 143;
and
b. tax on the total income determined under regular assessment shall not
Include the additional income-tax payable under section 140B.]

TA ON
❖ TAX ON UPDATED RETURN [SECTION 140B] :

1. Payment of tax, additional tax, interest and fee before furnishing updated return of
In a case where return is furnished earlier [Section 140B(2)]

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2. Interest under section 234B where earlier return has been furnished
[Section 140 B (4)]
In a case where an earlier return has been furnished, interest payable under section
Under section 234B has to be computed on the assessed tax or as case may be
On the amount by which the advance tax paid falls short of the assessed tax.

“Assessed tax” means the tax on the total income as declared in the updated return
to be furnished under section 139(8A), after taking into account the following:

a. the amount of relief or tax referred to in section 140A(1), the credit

for which has been claimed in the earlier return; (Earlier Advance Tax,TDS,TCS
Tax,TDS,TCS Etc.)
b. tax deducted or collected at source, in accordance with the provisions of
Chapter XVII-B, on any income which is subject to such deduction
or collection and which is taken into account in computing
such total income, which has not been included in the earlier return;
d. any relief of tax or deduction of tax claimed under section 90 or section 91
on account of tax paid in a country outside India on such income
which has not been included in the earlier return;
e. any relief of tax claimed under section 90A on account of tax paid in any
specified territory outside India referred to in that section on such
income which has not been included in the earlier return;
f. any tax credit claimed, to be set off in accordance with the provisions of
section 115JAA or section 115JD, which has not been claimed
in the earlier return (AMT&MAT); and

The aforesaid tax would be increased by the amount of refund, if any, issued in respect of such
such earlier return.

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3. Interest under section 234C if earlier return has been furnished

Interest payable under section 234C, where an earlier return has been furnished, has to
be computed after taking into account the total income furnished in the updated
return as returned income

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Chapter 14 Taxation of Various Entities

❖ Explanation 3A. : Charitable Institution

For the purposes of this sub-section, where the property held under a trust or institution
Includes any temple, mosque, gurdwara, church
Any sum received by such trust or institution as voluntary contribution for the Purpose
Of renovation or repair of such temple, mosque, gurdwara, church or other place, may at its
Option, be treated by such trust or institution as forming part of the corpus of the trust
Or the institution, subject to the condition that the trust or the institution,—

applies such corpus only for the purpose for which the voluntary contribution was made

does not apply such corpus for making contribution or donation to any person;

maintains such corpus as separately identifiable; and

invests or deposits such corpus in the forms and modes specified Under sub-section (5)
of section 11.

❖ Section 11(3) :
Where the accumulated income of the trust -

ceases to
is not utilised for the is credited/paid to any
is applied to be ceases to
purpose for which it is trust or fund or
purposes accumulate remain
accumulated or set institution registered
other than d or set invested or
apart during the period under Section
charitable or apart for deposited in
specified under the 12AA/12AB/section
religious application any of the
statement for 10(23C)(iv)/(v)/(vi)/(vi
purposes or ; forms or modes
accumulation; period a)12AA/12AB/section
to the specified in
specified under the 0(23C)(iv)/(v)/(vi)/
objects section 11(5)
statement for (via)
section 11(5);
accumulation;

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Such Amount will be considered to be the income of such Trust in the year of violation

❖ Explanation 3B :
If the above conditions are violated, such sum shall be deemed to be the income of such trust or
Institution in the year of violation.

❖ Expenditure allowed only on actual payment basis – Explanation to subsection (7) :

Previously, the term “application” included expenses that accrued during the year, even if they
Are not actually paid. However, with effect from A.Y. 2022-23, any sum payable
by any trust or institution shall be treated as application of income only in the previous
Year when such sum is actually paid by it.

This is irrespective of the previous year in which the liability to pay such sum was
Incurred or method of accounting regularly employed by it.

However, where during any previous year, any sum has already been claimed to have been
Applied by the trust or institution, such sum would not be allowed as application In any
Subsequent previous year based on actual payment.

❖ Accumulations of Income [Section 11(2)] – 5 years wala funda :

The income accumulated will be taxable at the end of the year for which it is accumulated.

For Example – Income Received in PY 22-23 is accumulated till PY 27-28.

If it’s not used till 31st March 2028 then the remaining amount which was accumulated
Will be taxable in the same year only i.e. PY 27-28.
Explanation:
Any amount donated out of income received by Charitable Trust shall not be
Treated as application of income.

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❖ Registration of Trusts [Section 12A] :

Conditions

If TI > Basic exemption limit

Trust registered case of
before exemption under section Assess to file
under section modifications of
11/12, then return of
12AA + objects which
Income as per
application for do not conform sec.
Maintain to the
registration audit report is
booksof conditions of 139(4A) within
given to required to be
Accounts & registration due date
Principal Comm. furnished 1
or Comm. Documents --> application
month before
due date of to Principal
return filing Comm. or
comm. within
30 Days

❖ Cancellation of Registration/approval [Section 12AB(4) & (5)] :

With effect from 1st April 2022, the Principal Commissioner of Income-tax (PCIT)
Or Commissioner Income-tax (CIT) can cancel registration or provisional registration or approval
or provisional approval of a trust or an institution granted under either the first regime
i.e., section 10(23C) or under the second regime i.e., section 11 read with section 12AB.

❖ Situations in which registration/approval can be cancelled :

The registration can be cancelled in the following situations:

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The registration can be cancelled in the following situations:

The PCIT or CIT has The case of the

The PCIT or CIT has
noticed the occurrence of
one or more specified
violations during any
previous year; or
received a reference from
an Assessing Officer
under the second proviso
to section 143(3) for
any previous year to
withdraw the approval or
registration due to
occurrence of a specific
violation; or
institution has been
selected in accordance
with risk management
strategy, formulated by
the CBDT from time to
time for any previous
year.

❖ Procedure for cancellation :

The PCIT or CIT in this regard shall

• Call for such documents or information from the trust or institution, or make
Such inquiry as he thinks necessary in order to satisfy himself about the occurrence
Or otherwise of any specified violation;
• Pass an order in writing, cancelling the registration or approval of such trust or
Institution, after affording a reasonable opportunity of being heard, for such
Previous year and all subsequent previous years if he is satisfied that one or more
Specified violations have taken place;
• Pass an order in writing, refusing to cancel the registration or approval of such
Trust or institution, if he is not satisfied with the occurrence of one or more specified
violations;
• Forward a copy of the order cancelling the registration or refusing to cancel
The registration to the Assessing Officer and to such trust or institution.

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❖ Time limit for passing the order :

The order cancelling or refusing to cancel registration has to be passed before the expiry of a
Period of six months, from the end of the quarter in which the first notice is issued
By the PCIT or CIT, on or after 1.4.2022, calling for any document or information, or for.
For making any inquiry.

❖ Meaning of Specified Violation :

where any income derived from property held under trust, wholly or in part for charitable or
religious purposes, has been applied, other than for the objects of the trust or institution; or

the trust or institution has income from profits and gains of business which is not incidental to
the attainment of its objectives or separate books of account are not maintained by such trust
or institution in respect of the business which is incidental to the attainment of its objectives;
or

the trust or institution has applied any part of its income from the property held under a trust
for private religious purposes, which does not enure for the benefit of the public; or

the trust or institution established for charitable purpose created or established after the
commencement of this Act, has applied any part of its income for the benefit of any particular
religious community or caste; or

any activity being carried out by the trust or institution—

• is not genuine; or
• is not being carried out in accordance with all or any of the conditions subject to which it
was registered; or
the trust or institution has not complied with the requirement of any other law, and the order,
direction or decree, by whatever name called, holding that such non- compliance has occurred,
has either not been disputed or has attained finality

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❖ Denial of Exemption [Section 13] i.e. Income will not be eligible for exemption under
Section 11 And 12 :

• With effect from A.Y. 2023-24, such part of income or property would not be
Eligible for exemption and would be taxed under section 115BBI at 30%. Further
To avoid income of the trusts or institutions to be used for the benefit of specified
Persons under section 13(3), penalty is leviable under 271AAE on the amount
Of income provided as a benefit.

❖ Penalty for providing benefit to person referred in section 13(3) [Section 271AAE] :

Applied income of the trust or institution, directly or indirectly, for the benefit of any
Person referred to in section 13(3), the Assessing Officer may direct such fund or trust or
Institution to pay penalty equal to -

o 100% of the aggregate amount of income so applied where the violation

Is noticed for the first time during any previous year; and
o 200% of the aggregate amount of income so applied, where violation
Is noticed again in any subsequent previous year

❖ Non-applicability of relaxation u/s 56(2)(x) :

The provisions of section 56(2)(x) are not attracted in the hands of the recipient who
receives any sum of money or property from an trust or institution approved u/s 10(23C)
Or registered u/s 12AA or 12AB

However, this relaxation is not available where sum of money or property has been
Received by specified persons under section 13(3).

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❖ SECTION [115BBI] :

1. Rate of tax on Specified Income:

New section 115BBI introduced with effect from A.Y. 2023-24, wherein certain specified
Income of a trust/institution availing exemption under the first regime
[section 10(23C)(iv)/(v)/(vi)/(via))] or second regime [Section 11], would be
Chargeable at the rate of 30%.

2. No deduction for expenditure or allowance:

Further, no deduction in respect of any expenditure or allowance or set-off of any
Loss would be allowed under any provisions of the Income-tax Act, 1961 while computing
Specified income.

3. Meaning of “Specified Income” Means:

income accumulated or set apart in excess of 15% of the income, where such
accumulation is not allowed under any specific provision of the Income-tax Act, 1961.

deemed income on account of violation of certain conditions stipulated for accumulation

of income under section 11(3) and corresponding provision in section 10(23C).

deemed income on account of violation of deemed application provisions specified under

11(1B).

any income which is not exempt under section 10(23C) or section 11 on account of funds
of the trust or institution not being invested in the forms and modes specified under
section 11(5)

any income which is applied for the benefit of any specified prohibited person referred to
in section 13(3).

any income derived from a property held under trust for a charitable purpose which tends
to promote international welfare in which India is interested to the extent to which such
income is not applied towards charitable purposes outside India.

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Chapter 15 Taxation of Various Entities

❖ Corporate Taxation Rates : Domestic Company

Where it has not opted for Section 115BAA and the total
Turnover or Gross receipts of the company in the previous year 25%
2020-21 does not exceeds 400 crore rupees

❖ Tax on income of certain new domestic manufacturing companies - 115BAB :

Section 115BAB provides for concessional rate of tax@15% (plus surcharge@10% Plus
HEC@4%) to new manufacturing domestic companies set up and registered on or after
1.10.2019, and commences manufacturing on or before 31.3.2024

❖ Alternate Minimum Tax :

18.5% + 4% Cess
Rate of Tax AMT 115JC 15% for Co-operative societies
+ Surcharge as applicable

❖ Taxability of Dividend income of an Indian company from a Specified

foreign company [Section 115BBD] :

"Specified foreign company" means a foreign company in which the Indian company
holds minimum 26% nominal value of the equity share capital of the company.

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Dividend declared, distributed or paid by a Specified foreign company

Received by an Indian company is taxable @ 15%.

No deduction in respect of any expenditure or allowance shall be allowed

to the assessee under any provision of this Act in computing its income by way
of such dividends

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Chapter 16 Assessment, Appeals, Revisions and Penalties

❖ Proviso to 143(3) Regular Scrutiny :

It is also obligatory for research associations, news agency, associations and other
Institutions exempt under clauses (21), (22B), (23A) and (23B) of section 10 to file
Their returns of income.

In these cases, the Assessing Officer cannot make an assessment denying exemption
Under section 10 without intimating the Central Government or the prescribed authority of the
Contravention of the provisions of the relevant sections and till the approval granted to these
Research associations, news agency, associations and other institutions has been withdrawn or
Notification rescinded [First proviso to section 143(3)].

If any trust or institution or educational institution or hospital or medical institution

referred in section 10(23C)(iv), (v), (vi) and (via) or any trust or institution referred to in section
has committed any “specified violation” as mentioned under section 10(23C) or under
section 12AB(4), the Assessing Officer shall :

• send a reference to the Principal Commissioner or Commissioner to withdraw

the approval or registration, as the case may be
And
• no order making an assessment of the total income or loss of such fund or
institution or trust or any university or other educational institution or
any hospital or other medical institution shall be made
by him without giving effect to the order passed by principal by the
Principal Commissioner or Commissioner either cancelling the approval or
refusing to cancel the approval of such trust or institution
or educational institution or hospital or medical institution
Under section 10(23C) or section 12AB (4) [Second proviso to section
143(3)

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❖ Meaning of Specified Violation :

where any income derived from property held under trust, wholly or in part for charitable or
religious purposes, has been applied, other than for the objects of the trust or institution; or

the trust or institution has income from profits and gains of business which is not incidental
to the attainment of its objectives or separate books of account are not maintained by such
trust or institution in respect of the business which is incidental to the attainment of its
objectives; or

the trust or institution has applied any part of its income from the property held under a trust
for private religious purposes, which does not enure for the benefit of the public; or

the trust or institution established for charitable purpose created or established after the
commencement of this Act, has applied any part of its income for the benefit of any
particular religious community or caste; or

any activity being carried out by the trust or institution—

• is not genuine; or
• is not being carried out in accordance with all or any of the conditions
subject to which it was registered; or

the trust or institution has not complied with the requirement of any other law, and the order,
direction or decree, by whatever name called, holding that such non- compliance has occurred,
has either not been disputed or has attained finality

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❖ Best Judgment assessment u/s 144:

Except, in case of failure to comply notice u/s 142(1) no opportunity of being heard to be
Given

❖ Section 153 – Time Limit :

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Section reference Time limit

Regular assessment u/s 143/ Best Income was first assessable End of AY + 9 months
judgment assessment u/s 144
If updated return is furnished u/s FY in which Return is furnished – Year End – 9 Months
139(8A) then assessment u/s 143/144
Assessment/ Reassessment u/s Year end + 12 months
147 (Income escaping
assessment)
order received year end + 12 Months
An order of fresh assessment as a
result of an order u/s 254 (ITAT’s
order) or 263 or264 (Revision by
commissioner) setting aside or
cancelling an Assessment or under
under 92CA (Reference to valuation
officer)
An order giving effect otherwise than Order received Month end + 3 months [+ 6 months
making a fresh assessment or extn. If reasons beyond officer’s control]
reassessment
Where the Transfer Pricing Officer gives effect to The Assessing Officer shall proceed to modify the order of
an order or direction u/s 263 by an order assessment or reassessment or recomputation, in conformity with such
u/s 92CA and forwards such order to the order of the Transfer Pricing Officer, within 2 months from the end
Assessing Officer of the month in which such order of the Transfer Pricing Officer is
received by him
Assessment, reassessment or Order received Month end + 12 months
recomputation to give effect to any
finding or direction contained in the
order of CIT, CIT(A), ITAT or any
court

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Assessment is made on partner of Assessment order passed Month end +

firm in consequence of assessment 12months
made on firm u/s 147
Reference made to TPO u/s 92CA In any of the above case, extend the time limit by 12
months
Assessment u/s 153A 12 months from the end of the financial year in which
the last of the authorizations for search u/s 132 or for
requisition u/s 132A was executed
Assessment u/s 153C 12 months from the end of the financial year in
which the last of the authorization for search u/s
132 or requisition u/s 132A was executed

❖ FACELESS ASSESSMENT (Section 144B) :

(i) Procedure to be followed by the assessee: Where a draft order is served on the assessee, he shall—
(a) file his acceptance of the variations proposed in such draft order to the NFAC; or
(b) file his objections, if any, to such variations, with—
(I) the Dispute Resolution Panel, and
(II) the NFAC,
Within 30 days of the receipt by him of the draft order.
(ii) Intimation by NFAC to Assessment Unit: The NFAC shall intimate the assessment unit to complete the
assessment based on the draft order:
(a) upon receipt acceptance from of the eligible assessee; or
(b) if no objections are received from the eligible assessee within 30 days of his receipt of the draft
order.
(iii) Assessment Unit to pass the assessment order: Upon receipt of intimation from NFAC under clause (xxv), the
assessment unit shall pass the assessment order, in accordance with the relevant draft order within one month
from the end of the month in which
- the acceptance is received or
- the period of 30 days for filing objection expired
and initiate penalty proceedings, if any, and send the order to the NFAC.

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❖ NFAC/RFACs/AUs/VUs/Rus to be set up for the purpose of faceless assessment

[Section 144B(3)] :

1. Regional Faceless Assessment Centre (RFAC):

• To facilitate the conduct of faceless assessment in the
controlling region of a Principal Chief Commissioner

Section 148A - Conducting inquiry, providing opportunity before issue of notice

under section 148 :

Assessing Officer has to follow the steps given hereunder, before issuing any notice under section
Section 148:
• conduct any enquiry, if required, with the prior approval of specified authority
• provide an opportunity of being heard to the assessee, with the
prior approval of specified authority, by serving upon him a notice to show cause
cause within such time, as may be specified in the notice,
being 7 days to 30 days or the extended time if requested

Non- applicability of section 148A – The provisions of this section shall not apply in a
case where-In case where :

a. A search is initiated under section 132 or books of account, other documents or any assets
Assets are requisitioned under section 132A in the case of the assessee
On or after 01.04.2021; or

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b.The Assessing Officer is satisfied, with the prior approval of the Principal Commissioner
Or Commissioner that any money, bullion, jewellery or other valuable article or thing,
Seized in a search under section 132 or or requisitioned under section 132A,
In the case of any other person on or after 01.04.2021, belongs to the assessee; or

c.The Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or
Commissioner that any books of account or documents, seized in a search under
section 132 or requisitioned under section 132A, in case of any other person on or after 01.04.2021
, pertains or pertain to, or any information contained therein, relate to, the assessee. Or

d.The Assessing Officer has received any information under the scheme notified under section
Section 135A (Faceless collection of information) pertaining to income chargeable to
Tax escaping assessment for any assessment year in the case of the assessee

In other words, in cases (a), (b) and (c) mentioned above,

the Assessing Officer need not conduct enquiry and provide an opportunity of being heard as
required under section 148A before issuing notice under section 148.

Issue of Notice where income has escaped assessment – Section 148 :

✓ Before making the assessment, reassessment or recomputation under section 147, the
Assessing Officer has to serve on the assessee a notice, requiring him to furnish
within such period, as may be specified in such notice, a return of his income

✓ It is considered as if such return were a return required to be furnished under section 139.
139

✓ The Assessing Officer finds it is a fit case for issue of notice → Send Order of
148A + Notice u/s 148
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✓ However, this does not apply in case search initiated under section 132 or
Books of account requisitioned under section 132A.
Notice can be issued only when-
o there is information with the AO which
And
o The AO has obtained prior approval of the specified authority to issue such notice.
Notice
o Provided further that no such approval shall be required where the Assessing
Officer, with the prior approval of the specified authority, has passed an order
under clause (d) of section 148A to the effect that it is a fit case to issue a notice
notice under this section i.e. already order has been passed under
Faceless assessment u/s 135A
✓ Scenario 1
For the purposes of this section and section 148A, the ‘information’ with the Assessing
Officer which suggests that the income chargeable to tax has escaped assessment means
o any information flagged in accordance with the risk management strategy
formulated by the Board from time to time;
any final objection raised by the Comptroller and Auditor General of India to
o any audit objection to the effect that the assessment in the case of
the assessee for the relevant assessment year has not been
made in accordance with the provisions of this Act; or
o any information received under an agreement referred to in section
90 or section 90A of the Act; or
o any information made available to the Assessing Officer under the
scheme notified under section 135A; or
o any information which requires action in consequence
of the order of a Tribunal or a Court

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✓ Scenario 2 :

Cases where Assessing Officer shall be deemed to have information-

The Assessing Officer shall be deemed to have information which suggests that the income
Chargeable to tax has escaped assessment in the case of the assessee where-

a search is initiated under section 132 or books of account, other documents or any assets
are requisitioned under section 132A, on or after 01.04.2021 in the case of the assessee; or

a survey is conducted under section 133A, other than under sub-section (2A) of that
section, on or after 01.04.2021, in the case of the assessee; or

the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or
Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or
requisitioned under section 132 or section 132A in case of any other person on or after
01.04.2021, belongs to the assessee; or

the Assessing Officer is satisfied, with the prior approval of Principal Commissioner or
Commissioner, that any books of account or documents, seized o Or requisitioned under
section 132 or section 132A in case of any other person on or after 01.04.2021, pertains or
pertain to, or any information contained therein, relate to, the assessee,

In scenario 2 The AO will be deemed to have information that the income has escaped
Escaped the assessment. For the last 3 AY apart from the current AY
Note: Order of assessment or reassessment or recomputation in respect of an assessment year to

to which the above four cases apply shall NOT be passed by an Assessing officer
below the rank of Joint Commissioner except with the prior approval of the Additional
Commissioner or Additional Director or Joint Commissioner or Joint Director [Section 148B].

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❖ Following orders passed by the AO can be challenged:

o Assessment order
o Order of levying Penalty
o treating a person as an assessee in default as per TDS & TCS Chapter
o Refund order against assessee
o Intimation u/s 143(1)
o An order made u/s 163 treating the assessee as the agent of the NR
o Order passed u/s 239A – AO denying refund to NR who deducted Tax but No Tax was
Deductible (Generally, orders of DRP are not appealable here)
o Appeal can be made by Assessee only (First Appeal Section 246A)
o Apply in Form 35

❖ Time Limit for Notice (Section 149) :

Where the income chargeable to tax represented in the form of an asset or expenditure in relation
in relation to an event or occasion of the value referred to above (` 50 lakhs or more),
has escaped the assessment and the investment in such asset or expenditure in relation
to such event or occasion has been made or incurred, in more than one previous years
to the assessment years within the period referred to in (b), a notice under section 148
shall be issued for every such assessment year for assessment, reassessment or recomputation, as the
As the case may be

❖ Sec 155 Amendment :

Section 40(a)(ii), provides that the term ‘tax’ shall include and be deemed to have always
included ‘surcharge’ or ‘cess’ and hence shall be an inadmissible deduction under
Section 40(a)(ii). If an assessee has claimed the deduction on account of ‘surcharge’
or ‘cess’ in any previous year, it shall be deemed that assessee has under- reported income for
Such previous years.

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❖ Revision :

S.NO. PARTICULARS SECTION 263 SECTION 263

Principal Chief Commissioner or Chief Commissioner or Generally, Income of
I INCOME the assessee is
Principal Commissioner or Commissioner may call for
decreased here
and examine the record Income of the assessee is
increased here

Revision of order
passed by any
The order of the AO or TPO is erroneous and prejudicial
subordinate authority.
to the interest of revenue.
II SCOPE
Order of CIT(A) can
be revised here

Deemed Erroneous and Prejudicial if the order of

AO/TPO is:
1. Not as per HC or SC verdict which is prejudicial to

the assessee; or
2. Without any inquiries or verification which should

have been made; or

3. Not as per order, direction or instruction by CBDT

Allowing any relief without inquiry of claim.

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