Showing posts from February, 2008


1. Search and Survey Power to carry out search under section 132 and survey under section 133A are important tools in the armory of the Income–tax department for detecting and preventing tax evasion. Though the need to have such tools cannot be grudged, the department has to use it sparingly and in deserving cases and after complying with necessary guidelines and safeguards. A search is violation of personal privacy and rights of a citizen and its use should only be in rarest of rare cases. 2. Search and Seizure u/s 132 2.1 Meaning ‘Search’ means a thorough inspection of the building, place, vehicle, vessel, aircraft and of the person. ‘Seizure’ means taking possession under the authority of law. 2.2 Powers in exercise of search The Income-tax Act gives very wide powers to an authorised officer to carry out the search and also to seize documents and unaccounted assets. The authorised officer has the power to: a. To enter and search any building, place

Inclusion of service tax receipts, u/s 44BB of IT Act

Merely because the service tax was ultimately payable to the Government that by itself cannot be a reason to say that the amount of service tax collected by the assessee is not incredible in the total sum for the purpose of section 44BB. ITAT, DELHI BENCH ‘I’ : NEW DELHI DDIT (Int’l Taxation) v Technip Offshore Contracting BV ITA No. 4613/D/07 January 16, 2009 RELEVANT EXTRACTS: 5.6 In the present case, it is not in dispute that the assessee company has realized service tax on account of providing services and facilities in connection with the exploration or extraction of minerals oils in India. The service tax so realized is a part of receipts received by the assessee from ONGC. The service tax realized by the assessee is in respect of services specified under section 44BB and rendered by it to ONGC. The Hon'ble jurisdiction! High Court of Uttarakhand has held that it is the sum received by the assessee which is to be taken into account for the purpose of "d