The May, 2015 issue of Direct Tax Amicus features an article on applicability of res judicata in tax matters which discusses on certain key issues of non –applicability of doctrine of res judicata in taxation. The Circular and Instruction section covers a circular clarifying that no interest under section 17B of the Wealth Tax Act can be levied on the amount of self-assessment tax paid before the due date of filing the return of net wealth and also a brief summary on the instruction stating that the collection of outstanding taxes in case of a UK resident taxpayer, whose request under MAP is pending, shall be kept under abeyance subject to a bank guarantee.
Ratio Decidendi section of this issue includes the Delhi High Court decision that ITAT is empowered to extend stay beyond 365 days when delay in disposal not attributable to assessee, deduction under Section 80HHC cannot be allowed where assessee has incurred loss in export business, profits earned are eligible for 80-IA deduction where losses have already been set off against other income, reopening of assessment valid if assessee did not disclose the existence of PE of its parent company in India and that an entity cannot be excluded as comparable merely because it has high profitability.
May, 2015/Issue-10