June 24, 2023 | CA B K Goyal & Co LLP

Section 197 of Companies Act 2013

Companies Act 2013 / CA Bhuvnesh Goyal / June 24, 2023

Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits. Limits on Managerial Remuneration in Public Companies Position Limit on Remuneration Directors (including MD and WTD) Not more than 11% of net profits of the company Manager Not more than 11% of net profits of the company Directors (MD, WTD, and Manager) Not more than 5% of net profits individually Directors (Non-MD, Non-WTD) Not more than 1% of net profits if MD or WTD exists; Not more than 3% of net profits otherwise Approval Requirements General Meeting Approval (For Remuneration exceeding 11% of net profits) Special Resolution Approval (For remuneration exceeding specified limits) Exceptions/Modifications/Adaptations Company Type Exception/Modification/Adaptation Nidhi Company Remuneration for special services subject to limits Government Company Section 197 does not apply Specified IFSC Public Company Section 197 does not apply Penalties and Fines Violation Penalty/Fine Contravention of provisions Fine ranging from INR 1 lakh to INR 5 lakhs Default in complying with section Penalty of INR 1 lakh for individuals Penalty of INR 5 lakhs for companies Auditor’s Report The auditor of the company will include the following details in their report: Whether the remuneration paid to directors complies with the provisions. Whether any director’s remuneration exceeds the prescribed limit. Any other details as prescribed. Disclosures in Board’s Report (for listed companies) he Board’s report of a listed company will include the following information: Ratio of remuneration of each director to the median employee’s remuneration. Other prescribed details. y will include the following details in their report: Whether the remuneration paid to directors complies with the provisions. Whether any director’s remuneration exceeds the prescribed limit. Any other details as prescribed. Section 197 2&3[ 1[(1) The total managerial remuneration payable by a public company, to its Directors, including managing director and whole-time director, and its manager in respect of any financial year shall not exceed eleven per cent. of the net profits of that company for that financial year computed in the manner laid down in section 198 except that the remuneration of the Directors shall not be deducted from the gross profits: Provided that the company in general meeting may,4[Omitted], authorise the payment of remuneration exceeding eleven per cent. of the net profits of the company, subject to the provisions of Schedule V: Provided further that, except with the approval of the company in general meeting,5[By a special resolution],— (i) the remuneration payable to any one managing director; or whole-time director or manager shall not exceed five per cent. of the net profits of the company and if there is more than one such director remuneration shall not exceed ten per cent. of the net profits to all such Directors and manager taken together; (ii) the remuneration payable to Directors who are neither managing Directors nor whole-time Directors shall not exceed,— (A) one per cent. of the net profits of the company, if there is a managing or whole-time director or manager; (B) three per cent. of the net profits in any other case.] 5[Provided also that, where the company has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, shall be obtained by the company before obtaining the approval in the general meeting.] (2) The percentages aforesaid shall be exclusive of any fees payable to Directors under sub-section (5). (3) Notwithstanding anything contained in sub-sections (1) and (2), but subject to the provisions of Schedule V, if, in any financial year, a company has no profits or its profits are inadequate, the company shall not pay to its Directors, including any managing or wholetime director or manager 16[or any other non-executive director, including an independent director], by way of remuneration any sum exclusive of any fees payable to Directors under sub-section (5) hereunder except in accordance with the provisions of Schedule V 6[Omitted]. (4) The remuneration payable to the Directors of a company, including any managing or whole-time director or manager, shall be determined, in accordance with and subject to the provisions of this section, either by the articles of the company, or by a resolution or, if the articles so require, by a special resolution, passed by the company in general meeting and the remuneration payable to a director determined aforesaid shall be inclusive of the remuneration payable to him for the services rendered by him in any other capacity: Provided that any remuneration for services rendered by any such director in other capacity shall not be so included if— (a) the services rendered are of a professional nature; and (b) in the opinion of the Nomination and Remuneration Committee, if the company is covered under sub-section (1) of section 178, or the Board of Directors in other cases, the director possesses the requisite qualification for the practice of the profession. (5) A director may receive remuneration by way of fee for attending meetings of the Board or Committee thereof or for any other purpose whatsoever as may be decided by the Board: Provided that the amount of such fees shall not exceed the amount as may be prescribed: Provided further that different fees for different classes of companies and fees in respect of independent director may be such as may be prescribed. (6) A director or manager may be paid remuneration either by way of a monthly payment or at a specified percentage of the net profits of the company or partly by one way and partly by the other. (7) 14[12[10[Omitted]]] (8) The net profits for the purposes of this section shall be computed in the manner referred to in section 198. (9) 7[If any director draws or receives, directly or indirectly, by way of remuneration any such sums in excess of the limit prescribed by this section or without approval required under this section, he shall refund such sums to the company, within two years or such lesser period as may be allowed by the company, and until such sum is refunded, hold it in trust for the company.] (10) The company shall not waive the recovery of any sum refundable to it under sub-section (9) unless 8[approved by the company by special resolution within two years from the date the sum becomes refundable.] 5[Provided that where the company has defaulted in payment of dues to any bank or public financial institution or non-convertible debenture holders or any other secured creditor, the prior approval of the bank or public financial institution concerned or the non-convertible debenture holders or other secured creditor, as the case may be, shall be obtained by the company before obtaining approval of such waiver.] (11) In cases where Schedule V is applicable on grounds of no profits or inadequate profits,

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Remuneration to Directors of a Company in India

Business / CA Bhuvnesh Goyal / June 24, 2023

When it comes to the remuneration of directors in Indian companies, several factors come into play, ranging from legal requirements to market trends. As a practicing Chartered Accountant and a fellow member of the Institute of Chartered Accountants of India (membership number 540126), I aim to shed light on this critical aspect of corporate governance. In this blog, we will explore the key elements surrounding remuneration to directors of a company in India, providing you with a comprehensive understanding of compensation practices. Understanding Remuneration to Directors of a Company in India To comprehend the nuances of remuneration to directors, let’s delve into its various facets: 1. Types of Remuneration In India, the remuneration granted to directors typically consists of the following components: Salary: Directors may receive a fixed salary, determined through board resolutions and subject to regulatory provisions. Perquisites: Directors often enjoy additional benefits, such as housing allowances, company vehicles, medical facilities, and more. Commission: In certain cases, directors receive a commission based on the company’s profits, subject to regulatory limits and approvals. 2. Legal Framework The remuneration to directors in India is governed by legal provisions outlined in the Companies Act, 2013. It sets forth guidelines and restrictions on remuneration, ensuring fairness and transparency. Key aspects include: Maximum Limits: The Act prescribes a cap on the total remuneration payable to directors, with specific provisions for different categories of companies. Board Approval: Any remuneration paid to directors must be approved by the company’s board of directors and disclosed in the financial statements. Shareholder Consent: In certain cases, prior approval from the shareholders is necessary for granting remuneration beyond prescribed limits. 3. Regulatory Compliance Indian companies must comply with various regulatory bodies concerning director remuneration. Notable authorities include: Ministry of Corporate Affairs (MCA): The MCA plays a pivotal role in regulating corporate affairs and monitoring compliance with the Companies Act. It ensures adherence to remuneration norms. Securities and Exchange Board of India (SEBI): SEBI, as the market regulator, oversees the remuneration practices of listed companies. It focuses on enhancing corporate governance standards and protecting investors’ interests. Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits. Limits on Managerial Remuneration in Public Companies Position Limit on Remuneration Directors (including MD and WTD) Not more than 11% of net profits of the company Manager Not more than 11% of net profits of the company Directors (MD, WTD, and Manager) Not more than 5% of net profits individually Directors (Non-MD, Non-WTD) Not more than 1% of net profits if MD or WTD exists; Not more than 3% of net profits otherwise Approval Requirements General Meeting Approval (For Remuneration exceeding 11% of net profits) Special Resolution Approval (For remuneration exceeding specified limits) Exceptions/Modifications/Adaptations Company Type Exception/Modification/Adaptation Nidhi Company Remuneration for special services subject to limits Government Company Section 197 does not apply Specified IFSC Public Company Section 197 does not apply Penalties and Fines Violation Penalty/Fine Contravention of provisions Fine ranging from INR 1 lakh to INR 5 lakhs Default in complying with section Penalty of INR 1 lakh for individuals Penalty of INR 5 lakhs for companies Auditor’s Report The auditor of the company will include the following details in their report: Whether the remuneration paid to directors complies with the provisions. Whether any director’s remuneration exceeds the prescribed limit. Any other details as prescribed. Disclosures in Board’s Report (for listed companies) he Board’s report of a listed company will include the following information: Ratio of remuneration of each director to the median employee’s remuneration. Other prescribed details. y will include the following details in their report: Whether the remuneration paid to directors complies with the provisions. Whether any director’s remuneration exceeds the prescribed limit. Any other details as prescribed. Recent Developments in Remuneration Practices In recent years, there have been notable developments in remuneration practices for directors in Indian companies. These changes aim to align compensation with performance and enhance corporate governance. Let’s explore some of these developments: 1. Clawback Provisions Clawback provisions have gained prominence to address situations where directors receive excessive remuneration due to misrepresentation or financial misconduct. These provisions empower companies to recover such amounts from directors, ensuring accountability and responsible conduct. 2. Independent Directors’ Remuneration Independent directors play a crucial role in ensuring unbiased decision-making within the board. To preserve their independence, the Companies Act mandates that independent directors’ remuneration should consist solely of sitting fees and reimbursement of expenses. This provision aims to safeguard their objectivity and prevent conflicts of interest. 3. Comparative Analysis In an effort to promote transparency, companies are increasingly adopting comparative analysis while determining directors’ remuneration. This involves benchmarking the compensation against industry standards and the performance of peer companies. Such an approach enables companies to make more informed decisions and ensures that remuneration remains competitive and reasonable. 4. Say-on-Pay Mechanism The introduction of the “say-on-pay” mechanism has empowered shareholders by giving them a voice in determining director remuneration. Through this mechanism, shareholders have the opportunity to express their approval or disapproval of the remuneration policy through voting. This promotes greater shareholder engagement and reinforces the principle of accountability. 5. Enhanced Disclosure Requirements Regulatory authorities have strengthened the disclosure requirements related to director remuneration. Companies are now obligated to provide detailed information regarding the remuneration policy, the components of remuneration, and the criteria for determining the same in their annual reports. This increased transparency fosters trust and helps stakeholders assess the fairness of the remuneration structure. In Conclusion Remuneration to directors of a company in India is a multifaceted subject that requires careful consideration of legal requirements, regulatory compliance, and market trends. Understanding the types of remuneration, legal frameworks, and recent developments can equip businesses with the knowledge necessary to make informed decisions. As a practicing Chartered Accountant, I encourage companies to seek professional advice to ensure compliance with the Companies Act and other relevant regulations. By adhering to best practices and fostering transparency, companies can strike a balance between rewarding directors and

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Powers, Duties, Authority, and Jurisdiction of Registrar of Companies Delhi: A Comprehensive Guide

Companies Act 2013 / CA Bhuvnesh Goyal / June 24, 2023

The Registrar of Companies (ROC) Delhi holds a pivotal role in the Indian corporate landscape. As a regulatory body, it exercises significant powers and bears various responsibilities concerning company registration and compliance. In this article, we will delve into the powers, duties, authority, and jurisdiction of the Registrar of Companies Delhi, shedding light on its crucial role in maintaining a robust corporate framework. Join me, CA Bhuvnesh Kumar Goyal, a practicing Chartered Accountant and a fellow member of the Institute of Chartered Accountants of India, as we explore the intricacies of the ROC Delhi’s functions. Powers of the Registrar of Companies Delhi The Registrar of Companies Delhi possesses a range of powers that empower it to effectively regulate and supervise companies operating within its jurisdiction. Some key powers include: Company Registration: The ROC Delhi holds the authority to oversee the process of company registration in Delhi, ensuring compliance with the Companies Act, 2013. It reviews and approves registration documents, facilitating the creation of legally recognized entities. Issuing Certificates: The Registrar grants certificates of incorporation, which serve as proof of a company’s legal existence. Additionally, it issues certificates related to the alteration of a company’s name, share capital, registered office, and more. Maintaining Registers: It is the responsibility of the ROC Delhi to maintain essential registers, including the Register of Charges, Register of Members, and Register of Directors. These registers provide a comprehensive overview of a company’s affairs and help establish transparency and accountability. Winding Up Proceedings: In cases of insolvency or non-compliance, the Registrar can initiate winding up proceedings against companies, ensuring the orderly dissolution and liquidation of their assets. Duties and Responsibilities of the Registrar of Companies Delhi To fulfill its role effectively, the Registrar of Companies Delhi shoulders various duties and responsibilities: Ensuring Compliance: The ROC Delhi acts as a guardian of legal compliance by ensuring companies adhere to statutory requirements. It reviews financial statements, annual returns, and other mandatory filings to verify adherence to accounting standards and legal norms. Adjudication of Disputes: The Registrar has the authority to settle disputes related to company matters. It acts as a quasi-judicial body, adjudicating on issues such as rectification of records, removal of directors, and approval of compromises and arrangements. Inspection and Investigation: The ROC Delhi conducts inspections and investigations to monitor compliance and investigate suspected corporate malpractices. It has the power to summon company officers, examine books of accounts, and take appropriate actions based on its findings. Dissolution and Striking-off: The Registrar plays a crucial role in dissolving defunct companies or striking them off the register. This process eliminates dormant entities, ensuring the registry reflects an accurate picture of active companies. Authority and Jurisdiction of the Registrar of Companies Delhi The Registrar of Companies Delhi exercises authority and jurisdiction within its designated geographic region. It covers the National Capital Territory of Delhi and monitors the compliance of companies operating within its boundaries. This jurisdictional power empowers the ROC Delhi to enforce statutory provisions and maintain corporate governance standards in the region. Frequently Asked Questions (FAQs) Can the Registrar of Companies Delhi reject a company’s registration application? Yes, the ROC Delhi has the authority to reject a company’s registration application if it fails to meet the requirements stipulated in the Companies Act, 2013. It is crucial for companies to ensure compliance and submit accurate and complete documentation to increase the chances of successful registration. What happens if a company fails to file its annual returns with the ROC Delhi? Non-filing of annual returns is a serious offense and can lead to penalties and legal consequences. The ROC Delhi may initiate legal action against the company, which can result in fines, prosecution, or even the striking off of the company from the register. Can the Registrar of Companies Delhi conduct investigations into suspected corporate fraud? Absolutely. The ROC Delhi has the authority to conduct investigations into suspected corporate fraud or malpractices. It can summon company officers, examine books of accounts, and take necessary actions based on its findings, ensuring transparency and accountability in corporate affairs. What role does the Registrar of Companies Delhi play in the dissolution of companies? The ROC Delhi plays a crucial role in the dissolution of defunct companies or striking them off the register. This process helps in maintaining an updated and accurate registry by eliminating companies that are no longer active or functioning. How can companies seek guidance and assistance from the Registrar of Companies Delhi? Companies can reach out to the ROC Delhi for guidance and assistance through various channels, including their official website, helpline numbers, or by visiting their office. It is advisable for companies to seek professional advice and ensure compliance with legal requirements to avoid any complications. Conclusion The Registrar of Companies Delhi, with its extensive powers, duties, authority, and jurisdiction, plays a vital role in maintaining a robust corporate framework. From overseeing company registration to enforcing compliance and regulating corporate affairs, the ROC Delhi ensures transparency, accountability, and adherence to statutory provisions. As a practicing Chartered Accountant, I recognize the significance of the ROC Delhi’s functions in fostering a conducive business environment. By understanding its powers and responsibilities, companies can navigate the corporate landscape with confidence and contribute to a thriving economy. About the Author: CA Bhuvnesh Kumar Goyal is a practicing Chartered Accountant since 2017 and a fellow member of the Institute of Chartered Accountants of India (ICAI) with membership number 540126. With a deep understanding of corporate regulations and compliance, CA Bhuvnesh brings extensive expertise in company law and accounting practices, helping businesses achieve financial success while ensuring adherence to legal frameworks. Disclaimer: The information provided in this article is for educational purposes only and should not be considered as legal advice. It is always recommended to consult with a qualified professional for specific queries and concerns regarding the Registrar of Companies Delhi and company-related matters.

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Section 255 of the Income Tax Act 1961

Income Tax / CA Bhuvnesh Goyal / June 24, 2023

Procedure of Appellate Tribunal. (1) The powers and functions of the Appellate Tribunal may be exercised and discharged by Benches constituted by the President of the Appellate Tribunal from among the members thereof. (2) Subject to the provisions contained in sub-section (3), a Bench shall consist of one judicial member and one accountant member. (3) The President or any other member of the Appellate Tribunal authorised in this behalf by the Central Government may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a member and which pertains to an assessee whose total income as computed by the Assessing Officer in the case does not exceed fifty lakh rupees, and the President may, for the disposal of any particular case, constitute a Special Bench consisting of three or more members, one of whom shall necessarily be a judicial member and one an accountant member. (4) If the members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the President of the Appellate Tribunal for hearing on such point or points by one or more of the other members of the Appellate Tribunal, and such point or points shall be decided according to the opinion of the majority of the members of the Appellate Tribunal who have heard the case, including those who first heard it. (5) Subject to the provisions of this Act, the Appellate Tribunal shall have power to regulate its own procedure and the procedure of Benches thereof in all matters arising out of the exercise of its powers or of the discharge of its functions, including the places at which the Benches shall hold their sittings. (6) The Appellate Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the income-tax authorities referred to in section 131, and any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purpose of section 196 of the Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898 (5 of 1898)96a. 97[(7) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of disposal of appeals by the Appellate Tribunal so as to impart greater efficiency, transparency and accountability by— (a) eliminating the interface between the Appellate Tribunal and parties to the appeal in the course of appellate proceedings to the extent technologically feasible; (b) optimising utilisation of the resources through economies of scale and functional specialisation; (c) introducing an appellate system with dynamic jurisdiction. (8) The Central Government may, for the purposes of giving effect to the scheme made under sub-section (7), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply to such scheme or shall apply with such exceptions, modifications and adaptations as may be specified in the said notification: Provided that no such direction shall be issued after the 31st day of March, 98[2024]. (9) Every notification issued under sub-section (7) and sub-section (8) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.] Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India

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Section 254 of the Income Tax Act 1961

Income Tax / CA Bhuvnesh Goyal / June 24, 2023

Orders of Appellate Tribunal (1) The Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. (1A) [***] (2) The Appellate Tribunal may, at any time within six months from the end of the month in which the order was passed, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section (1), and shall make such amendment if the mistake is brought to its notice by the assessee or the Assessing Officer : Provided that an amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this sub-section unless the Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard : Provided further that any application filed by the assessee in this sub-section on or after the 1st day of October, 1998, shall be accompanied by a fee of fifty rupees. (2A) In every appeal, the Appellate Tribunal, where it is possible, may hear and decide such appeal within a period of four years from the end of the financial year in which such appeal is filed under sub-section (1) or sub-section (2) of section 253: Provided that the Appellate Tribunal may, after considering the merits of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed under sub-section (1) of section 253, for a period not exceeding one hundred and eighty days from the date of such order subject to the condition that the assessee deposits not less than twenty per cent of the amount of tax, interest, fee, penalty, or any other sum payable under the provisions of this Act, or furnishes security of equal amount in respect thereof and the Appellate Tribunal shall dispose of the appeal within the said period of stay specified in that order: Provided further that no extension of stay shall be granted by the Appellate Tribunal, where such appeal is not so disposed of within the said period of stay as specified in the order of stay, unless the assessee makes an application and has complied with the condition referred to in the first proviso and the Appellate Tribunal is satisfied that the delay in disposing of the appeal is not attributable to the assessee, so however, that the aggregate of the period of stay originally allowed and the period of stay so extended shall not exceed three hundred and sixty-five days and the Appellate Tribunal shall dispose of the appeal within the period or periods of stay so extended or allowed: Provided also that if such appeal is not so disposed of within the period allowed under the first proviso or the period or periods extended or allowed under the second proviso, which shall not, in any case, exceed three hundred and sixty-five days, the order of stay shall stand vacated after the expiry of such period or periods, even if the delay in disposing of the appeal is not attributable to the assessee. (2B) The cost of any appeal to the Appellate Tribunal shall be at the discretion of that Tribunal. (3) The Appellate Tribunal shall send a copy of any orders passed under this section to the assessee and to the Principal Commissioner or Commissioner. (4) Save as provided in section 256 or section 260A, orders passed by the Appellate Tribunal on appeal shall be final. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India

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Section 256 of the Income Tax Act 1961

Income Tax / CA Bhuvnesh Goyal / June 24, 2023

Statement of case to the High Court (1) The assessee or the Principal Commissioner or Commissioner may, within sixty days of the date upon which he is served with notice of an order passed before the 1st day of October, 1998, under section 254, by application in the prescribed form, accompanied where the application is made by the assessee by a fee of two hundred rupees, require the Appellate Tribunal to refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court : Provided that the Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be presented within a further period not exceeding thirty days. (2) If, on an application made under sub-section (1), the Appellate Tribunal refuses to state the case on the ground that no question of law arises, the assessee or the Principal Commissioner or Commissioner, as the case may be, may, within six months from the date on which he is served with notice of such refusal, apply to the High Court, and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal to state the case and to refer it, and on receipt of any such requisition, the Appellate Tribunal shall state the case and refer it accordingly. (2A) The High Court may admit an application after the expiry of the period of six months referred to in sub-section (2), if it is satisfied that there was sufficient cause for not filing the same within that period. (3) Where in the exercise of its powers under sub-section (2), the Appellate Tribunal refuses to state a case which it has been required by the assessee to state, the assessee may, within thirty days from the date on which he receives notice of such refusal, withdraw his application, and, if he does so, the fee paid shall be refunded. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India

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Section 257 of the Income Tax Act 1961

Income Tax / CA Bhuvnesh Goyal / June 24, 2023

Section 257 of the Income Tax Act 1961 Read More »

Section 258 of Income Tax Act 1961

Income Tax / CA Bhuvnesh Goyal / June 24, 2023

Section 258 of Income Tax Act 1961 Read More »

Section 253 of Income Tax Act 1961

Income Tax / CA Bhuvnesh Goyal / June 24, 2023

Appeals to the Appellate Tribunal (1) Any assessee aggrieved by any of the following orders may appeal to the Appellate Tribunal against such order— (a) an order passed by a Deputy Commissioner (Appeals) before the 1st day of October, 1998 or, as the case may be, a Commissioner (Appeals) under section 154, section 250, section 270A, section 271, section 271A 90[, section 271AAB, section 271AAC, section 271AAD], section 271J or section 272A; or 90[(aa) an order passed by a Joint Commissioner (Appeals) under section 154, section 250, section 270A, section 271, section 271A, section 271AAC, section 271AAD or section 271J; or] (b) an order passed by an Assessing Officer under clause (c) of section 158BC, in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, after the 30th day of June, 1995, but before the 1st day of January, 1997; or (ba) an order passed by an Assessing Officer under sub-section (1) of section 115VZC; or 91[(c) an order passed by, (i) a Principal Commissioner or Commissioner under section 12AA or section 12AB or under clause (vi) of sub-section (5) of section 80G or under section 263 or under section 270A or under section 271 or under section 272A or an order passed by him under section 154 amending any such order; or (ii) a Principal Chief Commissioner or Chief Commissioner or a Principal Director General or Director General or a Principal Director or Director under section 263 or under section 272A or an order passed by him under section 154 amending any such order; or] (d) an order passed by an Assessing Officer under sub-section (3), of section 143 or section 147 or section 153A or section 153C in pursuance of the directions of the Dispute Resolution Panel or an order passed under section 154 in respect of such order; †or (e) an order passed by an Assessing Officer under sub-section (3) of section 143 or section 147 or section 153A or section 153C with the approval of the Principal Commissioner or Commissioner as referred to in sub-section (12) of section 144BA or an order passed under section 154 or section 155 in respect of such order; †or (f) an order passed by the prescribed authority under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10. (2) The Principal Commissioner or Commissioner may, if he objects to any order passed by a Deputy Commissioner (Appeals) before the 1st day of October, 1998 or, as the case may be, *a 92[the Joint Commissioner (Appeals) or the] Commissioner (Appeals) under section 154 or section 250, direct the Assessing Officer to appeal to the Appellate Tribunal against the order. (2A) [***] (3) Every appeal under sub-section (1) or sub-section (2) shall be filed within sixty days of the date on which the order sought to be appealed against is communicated to the assessee or to the Principal Commissioner or Commissioner, as the case may be : Provided that in respect of any appeal under clause (b) of sub-section (1), this sub-section shall have effect as if for the words “sixty days”, the words “thirty days” had been substituted. (3A) [***] (4) The Assessing Officer or the assessee, as the case may be, on receipt of notice that an appeal 93[against an order], has been preferred under sub-section (1) or sub-section (2) by the other party, may, notwithstanding that he may not have appealed against such order or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against 94[any part of such order], and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3). (5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4), if it is satisfied that there was sufficient cause for not presenting it within that period. (6) An appeal to the Appellate Tribunal shall be in the prescribed form95 and shall be verified in the prescribed manner and shall, in the case of an appeal made, on or after the 1st day of October, 1998, irrespective of the date of initiation of the assessment proceedings relating thereto, be accompanied by a fee of,— (a) where the total income of the assessee as computed by the Assessing Officer, in the case to which the appeal relates, is one hundred thousand rupees or less, five hundred rupees, (b) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than one hundred thousand rupees but not more than two hundred thousand rupees, one thousand five hundred rupees, (c) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than two hundred thousand rupees, one per cent of the assessed income, subject to a maximum of ten thousand rupees, (d) where the subject matter of an appeal relates to any matter, other than those specified in clauses (a), (b) and (c), five hundred rupees: Provided that no fee shall be payable in the case of an appeal referred to in sub-section (2), or, sub-section (2A) as it stood before its amendment by the Finance Act, 2016, or, a memorandum of cross objections referred to in sub-section (4). (7) An application for stay of demand shall be accompanied by a fee of five hundred rupees. (8) The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of appeal to the Appellate Tribunal under sub-section (2), so as to impart greater efficiency, transparency and accountability by— (a) optimising utilisation of the resources through economies of scale and functional specialisation; (b) introducing a team-based mechanism for appeal to the Appellate Tribunal, with dynamic jurisdiction. (9) The Central Government may, for the purpose of giving effect to the scheme made under sub-section (8), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification: Provided that no direction shall be issued after the 31st day of March, 96[2024]. (10) Every notification issued under sub-section (8) and sub-section (9) shall, as soon as may be after the notification is issued, be laid before each

Section 253 of Income Tax Act 1961 Read More »

Section 249 of Income Tax Act 1961

Income Tax / CA Bhuvnesh Goyal / June 24, 2023

Form of appeal and limitation (1) Every appeal under this Chapter shall be in the prescribed form79a and shall be verified in the prescribed manner and shall, in case of an appeal made to the Commissioner (Appeals) on or after the 1st day of October, 1998 80[or to the Joint Commissioner (Appeals) on or after the 1st day of April, 2023,] irrespective of the date of initiation of the assessment proceedings relating thereto be accompanied by a fee of,— (i) where the total income of the assessee as computed by the Assessing Officer in the case to which the appeal relates is one hundred thousand rupees or less, two hundred fifty rupees; (ii) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than one hundred thousand rupees but not more than two hundred thousand rupees, five hundred rupees; (iii) where the total income of the assessee, computed as aforesaid, in the case to which the appeal relates is more than two hundred thousand rupees, one thousand rupees; (iv) where the subject matter of an appeal is not covered under clauses (i), (ii) and (iii), two hundred fifty rupees. (2) The appeal shall be presented within thirty days of the following date, that is to say,— (a) where the appeal is under section 248, the date of payment of the tax, or (b) where the appeal relates to any assessment or penalty, the date of service of the notice of demand relating to the assessment or penalty: Provided that, where an application has been made under section 146 for reopening an assessment, the period from the date on which the application is made to the date on which the order passed on the application is served on the assessee shall be excluded : Provided further that where an application has been made under sub-section (1) of section 270AA, the period beginning from the date on which the application is made, to the date on which the order rejecting the application is served on the assessee, shall be excluded, or (c) in any other case, the date on which intimation of the order sought to be appealed against is served. (2A) Notwithstanding anything contained in sub-section (2), where an order has been made under section 201 on or after the 1st day of October, 1998 but before the 1st day of June, 2000 and the assessee in default has not presented any appeal within the time specified in that sub-section, he may present such appeal before the 1st day of July, 2000. (3) The 81[Joint Commissioner (Appeals) or the] Commissioner (Appeals) may admit an appeal after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting it within that period. (4) No appeal under this Chapter shall be admitted unless at the time of filing of the appeal,— (a) where a return has been filed by the assessee, the assessee has paid the tax due on the income returned by him; or (b) where no return has been filed by the assessee, the assessee has paid an amount equal to the amount of advance tax which was payable by him: Provided that, in a case falling under clause (b) and on an application made by the appellant in this behalf, the 81[Joint Commissioner (Appeals) or the] Commissioner (Appeals) may, for any good and sufficient reason to be recorded in writing, exempt him from the operation of the provisions of that clause. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India

Section 249 of Income Tax Act 1961 Read More »