Penalties shall followed by prosecutions-CBDT Chairman. Action shall be taken even before filing return for huge cash deposits with unmatched past profile of the assessees.
CBDT Chairman Shri Sushil Chandra in his latest TV interview has hinted the impending actions that are being planned by the CBDT after 30th December, 2016 in relation to cash deposits in the bank accounts as a result of withdrawal of old bank notes of Rs. 500 and rs. 1000/-
Author’s Note:
The interview of the CBDT Chairman was very much on the lines of the statement given by the Finance Minister. However to give effect to what was expressed, the road will not be easy for the Taxman as the actions taken shall be put to the test of the relevant rules, regulations and the settled judicial views.
Obviously coming days could see few amendments to the Income Tax Act and Rules. Professionals would also need brushing themselves up as they would have hectic schedules arguing the facts and the law before the Income Tax/Appellate Authorities and Court of Law.
In my view, the Income Tax Department would be at the receiving end in the long run because the CBDT/Government can not make/amend an order/law to give retrospectively effect to any provision which will adversely affect the assessee, secondly income can not be assesssed on surmises or conjectures and In the absence of any cogent material found by the revenue, benefit of doubt has always been given in favour of the assessee, lastly, at appellate level IT Department may have to work very hard to save its ground as the settled law is that a Court of Law interferes not when something is wrong but only when it is shown to be so.
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