rule 8d sec 14A OF INCOMETAX ACT

Tax queries 1039 views 2 replies

damle sudhir

propreietor

40 Points Posted on 20 January 2010

Rule8d in rules shows with effect from 24/03/2008 sec 14A comes with effect from 1/04/2007 by finance act 2006 can assessing officer apply rule6d for A Y 07-08 ?

if so can he charge penalty u/s 271 (1) (c) since methodology was not available to assessee when he filed return for A Y 07-08 since rule came from 24/03/2008. return is filed in sept07for A Y 07-08

Replies (2)

Anumanchipalli Sathikonda

Tax Consultant

1559 Points Posted on 31 January 2010

Mr.Damle Sudhir The principal rules were published in Gazette of India vide notification no.SO 969(E, in part II of the Gazette dated 26.03.1962 and last amendment was made vide notification no.SO 493(E) dt. 13.03.2008. In view of the above the newly inserted rule 8D may be employed by the Assessing Officer for the assessment of earlier periods also. Any how I am not sure that I am correct. Experts please correct me if I am wrong. Best wishes Sathikonda

Amir

Learner

4016 Points Posted on 31 January 2010

Dear Damle,

Sec 14 A was inserted with retrospective effect from 1961..

But Rule 8 D was inserted with 24/03/2008...

I don't think Rule 8D can be applied for assesssment year 2007-08 or earlier years..

It is well settled that for the purpose of assessment to income-tax, the law to be applied is that law that is in force in the assessment year; in other words, the Act as it stands amended on the first day of April of a financial year will apply to the assessment for that year - Addl. CIT v. Joginder Singh [1985] 151 ITR 93 (Delhi).

But one thing I m sure that AO cannot impose penalty u/s 271(1)(c) in the present case since the said Rule was not there..