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Case Analysis On: ITC LTD v/s Agricultural Produce Market Committee And The Major Amendments In Income Tax Act For The Year 2020-2021

The main significance in the present case is that this case involved a controversy between the working of two Acts: The Tobacco Board Act of 1975, enacted by the Parliament, and the Bihar Agricultural Produce Markets Act of 1960, passed by state Legislature. Under Entry 52, List I, Parliament took control of a tobacco industry and enforced the Tobacco Board Act in 1975.

The Bihar Agricultural Produce Markets Act, 1960 was enacted by the State of Bihar and is apparently referable to Entry 28 of List II, which provides the State legislature an exclusive power to legislate on Markets and Fairs, read with Entry 66 of List II, which allows the State Legislature to levy fees in respect of all matters in List II except Court fees. Both these Acts attempted to levy a fee on the sale and purchase of tobacco and are now in conflict with one another.

ITC Ltd Vs Agricultural Produce Market Committee
Case Law Details:
Case Title: ITC Ltd. V. Agricultural Produce Market Committee & Ors
Citation: Civil Appeal No. 6453 Of 2001
Appellant: ITC Ltd.,
Respondent: Agricultural Produce Market Committee & Ors
Court: Hon'ble Supreme Court Of India.
Bench: Hon'ble Cji, G.B. Pattanaik & Ors.
Significance Of The Case:

Facts Of The Case:
A writ petition was filed by I.T.C. Limited before the Patna High court against the order passed by the agricultural produce market committee for the tax imposed of a market fee for the purchase of unprocessed tobacco, despite the fact that the market committee lacks the authority to levy and collect fees.

At the High court it was contented that the purchase or sale of tobacco leaves was not within the market area and under section 27 of the Bihar agricultural produce market act, the market committee was not entitled to levy market fee. The division bench came to the conclusion that there was no clear notice have been given to the company to produce the related documents for processed or exported to satisfy the market committee saying that either not processed or adducing all the relevant document therefore the market committee must give the compony a new opportunity for the production of all the relevant documents before the market committee.

The company has filed a special leave petition before the Hon'ble Supreme court because the High Court have remitted the matters to the market committee for passing a fresh order. The Hon'ble Supreme court felt that it would be appropriate to issue notice to the Attorney General and the Advocate Generals of all the States, as most of the States have their very own State Act called the Agricultural Produce Market Act, and notices have been issued to the Advocate Generals of all the States, as well as the Ld. Attorney General, and this case has since been heard by this Bench.

After announcing that it is in the public interest for the Union to take full control of the tobacco industry under entry 52 of list 1, Legislature passed the Tobacco Board Act, 1975, which would be an Act to do something for the development of the tobacco industry under Union Government control.

The State Government has informed 'tobacco' as an agriculture product under entry 28 of List 2 of the Bihar Agricultural Produce Markets Act, as well as the sale and purchase of tobacco is to be governed by the provisions of the State Act, and the Market Committee has the authority to levy and collect market fees on such sale and purchase of the notified agriculture products, namely tobacco. This case presents a conflict between the above mention two acts. As both of these have the right to levy fee on the sale and purchase of tobacco.

Substantial Question Of Law:
The main issues raised before the Apex Court in this case concerned the Union's and the State's legislative powers, which can be summarised as follows:
  1. Whether the judgment given by the Hon'ble High Court for the ITC case is correctly decided or not
  2. Whether the state legislature are competent to enact legislation provision for the levy and collection of market fee on the sale of tobacco in a market area?
  3. Can state legislations and the tobacco board act coexist in respect of sale of tobacco in the market areas within the framework of the agricultural produce marketing acts- the state legislations under consideration?

Provisions:
  1. Article 254(1) of Indian Constitution:
    If any provision of a law made by the Legislature of a State is repugnant to any provision of a law made by Parliament which Parliament is competent to enact, or to any provision of an existing law with respect to one of the matters enumerated in the Concurrent List, then, subject to the provisions of clause ( 2 ), the law made by Parliament, whether passed before or after the law made by the Legislature of such State, or, as the case may be, the existing law, shall prevail and the law made by the Legislature of the State shall, to the extent of the repugnancy, be void
     
  2. Entry 52 of List I:
    Industries, the control of which by the Union is declared by Parliament by law to be expedient in the public interest.
     
  3. Entry 28 of list II:
    Markets and fairs.
     
  4. Entry 66 of List II:
    Fees in respect of any of the matters in this List, but not including fees taken in any court.
     
  5. Entry 27 of List II:
    Production, supply and distribution of goods subject to the provisions of entry 33 of List III.
     
  6. Entry 24 of List II:
    Industries subject to the provisions of [entries 7 and 52] of List I.
     
  7. Entry 14 of List II:
    Agriculture, including agricultural education and research, protection against pests and prevention of plant diseases.
     
  8. Entry 33 of List III:
    Trade and commerce in, and the production, supply and distribution of:
    1. the products of any industry where the control of such industry by the Union is declared by Parliament by law to be expedient in the public interest, and imported goods of the same kind as such products;
       
    2. foodstuffs, including edible oilseeds and oils;
    3. Cattle Fodder, Including Oilcakes And Other Concentrates;
       
    4. Raw Cotton, Whether Ginned Or Unginned, And Cotton Seed; And
    5. Raw Jute
       
  9. Entry 26 of List II:
    Trade and commerce within the State subject to the provisions of entry 33 of List III[1].

Arguments Advanced By The Appellant:

The appellants contend that the Tobacco Board Act of 1975 only appears to apply to Entry 52 of List I, which allows Parliament to legislate on industries whose regulated by the Union is declared by Parliament to be in the public interest by law. The Bihar Agricultural Produce Markets Act, as per the appellants, aims to regulate, among many other things, the sale of various agricultural produce, including tobacco.

They claim that the provisions of the Bihar Agricultural Produce Markets Act cannot be implemented to tobacco because Parliament enacted the Tobacco Act under Entry 52 of List I to control the overall things related to the tobacco industry, from cultivation to processing, storage, sale, manufacture, export, and import of tobacco. The appellants contended that once a declaration is made in accordance with Entry 52 of the Union List, the industry for which the declaration was made ceases to exist.

The following suggestion was that the word industry in List I Entry 52 be given a broad meaning. According to the appellants, in Harakchand Ratanchand Banthia and Ors. v. Union of India[2], The above Court not only acknowledged the wide interpretation of industries, but also particularly held that the term "industry" in Entry 52 also included the production, supply, and distribution of goods as defined in List II Entry 27.

In fact, it was attempted to argue that the provisions of the Tobacco Act fell solidly within Parliament's purview and the field enclosed by Entry 52 of List I. It was also argued that Parliament, in conformity with the principles of pith and substantiation, could legislate on raw materials supplied to a declared industry.

The challenging issues was that, even if the State Government retained the authority to legislate on tobacco, it could not enact any statutory provisions that would be in conflict with the Central Act. The provisions of the Tobacco Act and the Markets Act were referred to in detail to argue that they could not coexist and that the Central Act would have to take precedence. It was argued that, in the circumstances, the provisions of the Markets Act relating to tobacco were in conflict with the provisions of the Tobacco Act, and that, under the provisions of Article 254(1) of the Constitution, the law made by Parliament was to prevail and the law made by the legislatures of the states was void to the extent of the conflict with the Central Act.

Arguments Advanced By The Respondents:

The respondents argued that now the Tobacco Act did not and could not take up the entire tobacco legislative field. Thus, according them, notwithstanding the declaration in Section 2 of the Tobacco Act under Entry 52 of List I, the term "industry" in the context of the Tobacco Act could not mean anything other than tobacco processing and manufacturing. The judgement of the Constitution Bench in Tika Ramji and Others v. State of Uttar Pradesh and Others[3] was relied entirely on.

On behalf of the respondents, it was also argued that the issue of conflict between the Markets Act and the Tobacco Act would not emerge because Parliament completely lacks the authority to implement provisions in a legislative field specifically mentioned in List II. It was contended that the legislative field under Entry 52 of List I was deduced from List II's Entry 24, and that Entry 24 did not involve the legislative fields otherwise specifically provided for in List II. This was stated that by authorising a declaration under Entry 52 of List I, the Central Government's legislation on commodities traded at markets and fairs could not be rendered obsolete.

The respondents have also contended that the State Act is also referable to Entry 14 of List II, which explains the permissible subject matter of legislation by states as: 14: Agriculture, including agricultural education and research, pest control, and plant disease prevention.

Except for List II Entries 26 and 27, every one of the entries fall under the exclusive legislative jurisdiction of the states. It was argued that even if the Markets Act were implemented under Entries 26 and 27 of List II, this would not render the Market Act invalid in terms of tobacco. Also it was argued that, while Entries 26 and 27 in the State List were subject to the provisions of Entry 33 of the Concurrent List, there was no provision in Entry 33 of the Concurrent List that dealt with tobacco. It was argued that the repugnancy problem did not originate because Article 254(1) only refers to repugnancy in actual legislation.

According to the respondents, presuming that Parliament had the authority to legislate on tobacco, there has been no conflict between the Markets Act and the Tobacco Act because the Tobacco Act did not involve post-auction sales. In almost any case, there can be no conflict between both the Markets Act and the Central Act in Bihar. Especially since Sections 13, 13A, and 14A of the Tobacco Act were not made effective in Bihar. The absence of a quasi-clause in the Tobacco Act, and also the presence of Section 31 in that Act, which, as per the respondents, makes it very clear that the Tobacco Act was to be read in addition to, not in lieu of, any other law, have been cited.

Observations Of The Case:
The very first question addressed by the Court in this case concerned the interpretation of the definition of the word "industry." To interpret the definition of the word industry, the Case is based on the decision in Tika Ramji's case[4]

Industry, in its broadest sense, would include three distinct aspects: (1) raw materials that are an integral part of the industrial process, (2) the manufacturing or production process, and (3) the distribution of the industry's products. The raw materials would be goods listed in List II, Entry 26. The process of production or manufacture would be included in Entry 24 of List II, unless the industry was a controlled industry, in which case it would be included in Entry 52 of List I, and the products of the industry would also be included in Entry 27 of List II unless they were the products of governed industries, in which case they would fall under Entry 33 of List III.

This judgement was recently reinforced and implemented in Belsund Sugar Company v. State of Bihar[5], and it was also not contradictory to the appellants' case. The purpose of the Bihar Markets Act was then analysed, as was the legislative competence of the State Legislature.

The Court stated that establishing market areas, market yards, and governing the use of the facilities within such areas or yards through the levy of market fees is a matter interest that would be protected by Entry 28 of List II and thus within the State's legislative competence. Because the Markets Act doesn't really seek to regulate tobacco manufacturing or production, it has no effect on the Tobacco Act. As a result, even in the case of tobacco, Parliament is incapable to legislate for the establishment or regulation of markets and fairs in the meaning of the term in entry 28 of List II.

The focus and goal of the Tobacco Act were analysed, and the Court attempted to consolidate the two conflicting laws by applying the rule of harmonious construction. Use of the terms markets and marketing in the Tobacco Act, including Section 8, doesn't really imply the existence of a market in the sense that the term is used in the Markets Act. It is clear from turns of phrase like the Virginia tobacco market, the creation of new marketplaces outside India, and so on that the term was used in the sense of a sale being governed by supply and demand, particularly a request for a goods or services - in this case tobacco.

The Tobacco Act is concerned with how, rather than where, tobacco is discarded of. Even though the Tobacco Act mentions the establishment of bidding platforms, it's doesn't actually do so. Because the state has sole authority over market location, the officials under the Tobacco Act would be required to follow municipal laws and established bidding platforms only within permitted areas.

If the Market Act's facilities are used, they must be paid for, and the authorities designated under the Market Act to levy and collect fees for that purpose would be competent to do so. Fees may be levied under Section 14-A of the Tobacco Act if additional services are provided at the Auction Platforms under the Tobacco Act.

Judgment:
In keeping with the conclusion of the majority of view expressed it was held that:
  1. ITC case was not correctly decided.
  2. The state legislature is competent to enact legislation providing for the levy and collection of market fee on the sale of tobacco in a market area. Consequently, the markets acts enacted by the states are valid.
  3. The state legislations and the tobacco board act, to the extent that they relate to the sale of tobacco in market areas, cannot coexist and the former prevail over the latter.

As a result, the right to levy fees under the two acts may not necessarily conflict.

Thus, the judgment in the case of I.T.C. Ltd v. state of Karnataka[6] was quashed by this judgment and the states authority to leavy and collect market fee on tobacco was upheld.

Probable Grounds On Which The Law Declared By That Judgment Could Be Overruled By The Hon'ble Supreme Court:
The Tobacco Board Act of 1975 only applies to Entry 52 of List I, which allows Parliament to pass legislation on industries for whom the control by the Union is declared by Parliament to be in the interest of the public by law.

Because the Tobacco Act was enacted by Parliament under Entry 52 of List I to control and regulate everything related to the tobacco industry, from tobacco cultivation to tobacco processing, storage, sale, manufacture, export, and import, the Bihar Agricultural Produce Markets Act cannot be applied to tobacco. Even if the State Government retained the authority to legislate on tobacco, no statutory provisions could be enacted that would conflict with the Central Act.

The provisions of the Tobacco Act and the Markets Act were referred to in detail to argue that they could not coexist and that the Central Act would have to take precedence. The provisions of the Markets Act relating to tobacco were in conflict with the provisions of the Tobacco Act, and that, under the provisions of Article 254(1) of the Constitution, the law made by Parliament was to prevail and the law made by the legislatures of the states was void to the extent of the conflict with the Central Act.

Major Amendments For The Year 2020-2021

The Finance Act 2020 made several changes to Income Tax Act that will be effective for the financial year (FY) 2020-21. Further there was a lot of inclusions made in the act which are discussed below:
  1. Section: 12AB (Clause: 12):

    Initially, an NGO's registration to get an organization's income exempted from tax was done under Section 12AA. Following Section 12A registration, all income is exempt from taxation. If an NGO does not obtain 12A registration, income tax is due on any surplus during the financial year. As per the new Compliance with respect to Sections 12A and 12AA, all NGOs that currently have exemption under Section 12AA of the IT Act must reapply for the same by March 31, 2022. (As extended). Section 12AB requires that you obtain new registration.

    Section 12ab Registration Terms And Conditions:

    • All existing registered trusts under sections 12A or 12AA would be transferred to the new section 12AB.
    • Newly established trusts and institutions that apply to income tax for the first time will be granted provisional registration for three years.
    • The temporary registration will be valid for three years.
    • An application for renewal of provisional registration or rather registration must be made within 6 months of the completion of three years of provisional registration.
    • All registrations under Section 12A or 12AA, once completed, will be required to renew their registration every 5 years.
    • After processing your application, income tax may re-validate your trust or institution's registration under sections 12AA and 80G for a period of 5 years.

    Benefits:
    1. Income will be exempt from taxes.
    2. Advantages of obtaining grants from the government, foreign governments, or other organisations.
    3. It has advantages on FCRA registration.
       
  2. Section: 80M (Clause: 40):

    This section applies to domestic corporations that have declared dividends and are also receiving dividends from other domestic corporations. A deduction is allowed for dividends received if they are distributed as dividends one month before the due date of filing the return.

    This section was added as part of a series of changes aimed at shifting the incidence of dividend income taxation from the payer to the recipient. Because today's technology infrastructure allows for the tracking of dividend income, DDT provisions have outlived their usefulness. Furthermore, the scope of the dividend income deduction has been expanded to include all domestic companies, not just those with a holding-subsidiary relationship, reducing the possibility of double taxation of dividend income.

     
  3. Section: 150BAC & 150BAD (Clause: 53):

    Section: 150BAC:
    Section 115BAC of the Income Tax Act of 1961 is a newly inserted section that deals with the new income tax regime. This section and alternate tax regime were introduced in the Union Budget 2020, and they are only applicable to individuals and Hindu Undivided Families (HUFs). The income tax slab rates have been significantly reduced under this new regime, which is a key feature of the new regime. The new rates, however, come at the expense of a number of key income tax exemptions and deductions that were previously available under the old (existing) income tax regime.
     
    1. The following table shows the new slab rates as per Section 115BAC.
      Annual Income New Income Tax Slab Rate
      Nil to Rs. 2.5 lakh Exempt
      Above Rs. 2.5 lakh to Rs. 5 lakhs 5%
      Above Rs. 5 lakhs to Rs. 7.5 lakh  10%
      Above Rs. 7.5 lakh to Rs. 10 lakhs 15%
      Above Rs. 10 lakhs to Rs. 12.5 lakh 20%
      Above Rs. 12.5 lakh to Rs. 15 lakhs 25%
      Above Rs. 15 lakhs 30%

      Deductions and exemptions not allowed under Section 115BAC:
       
      Major Deductions under Chapter VIA (u/s 80C, 80CCC, 80CCD, 80DD, 80DDB, 80E, 80EE, 80EEA, 80G, 80IA, etc) House Rent Allowance (HRA) u/s 10(13A) Home Loan Interest u/s 24(b)
      Standard Deduction  Leave Travel Allowance u/s 10(5) Deduction for Donation or Expenditure on Scientific Research
      Allowances u/s 10(14) Deduction for Entertainment Allowance and Employment/Professional Tax u/s 16 Depreciation u/s 32(iia)
      Deduction's u/s 32AD, 33AB, 33ABA, 35AD, 35CCC Exemption for SEZ unit u/s 10AA Deduction from Family Pension u/s 57(iia)
      Deductions allowed under Section 115BAC:
      Deduction u/s 80CCD(2) (employer's contribution to your pension account) Deduction u/s 80JJAA (additional employee cost) Transport Allowance for Differently Abled Employees (Divyang)
      Conveyance Allowance for Performance of Office Duties Any Allowance for the Cost of Travel/ Tour/ Transfer Daily Allowance given to Employees under Certain Conditions

    Section 150BAD:
    The cooperative society's total income has been calculated without taking into account any specific deductions, exemptions, or incentives (the list of the same is given below). There is no time limit for exercising option u/s 115BAD to benefit from a lower tax rate. However, the option to take advantage of Section 115BAD must be exercised on or before the due date specified in Section 139(1) for filing the first income tax return in the prescribed manner.

    This option, once exercised, cannot be withdrawn. Co-operative Societies may also not set off brought forward losses and depreciation from previous assessment years if such losses or depreciation is attributable to the deductions.

    The various deduction and exemptions which a Co-Operative Society opting for section 115BAD cannot claim are as follows:
    • Section Deduction Section 10AA Deduction for units established in Special Economic Zones (SEZ
    • Section 32(1)(iia) Additional Depreciation Section 32AD Deduction for investment in new plant and machinery in notified backward areas
    • Section 33AB Deduction in respect of tea, coffee or rubber business
    • Section 33ABA Deduction in respect of business consisting of prospecting or extraction or production of petroleum or natural gas in India
    • Section 35(1)(ii) Deduction for donation made to approved scientific research association, university college or other institutes for doing scientific research which may or may not be related to business
    • Section 35(1)(iia) Deduction for payment made to an Indian company for doing scientific research which may or may not be related to business
    • Section 35(1)(iii) Deduction for donation made to the university, college, or other institution for doing research in social science or statistical research
    • Section 35(2AA) Deduction for donation made to National Laboratory or IITs, etc. for doing scientific research which may or may not be related to business
    • Section 35AD Deduction in respect of capital expenditure incurred in respect of certain specified businesses, i.e., cold chain facility, warehousing facility, etc.
    • Section 35CCC Deduction for expenditure on the agriculture extension project Any Provision of Chapter VI-A Deduction in respect of certain incomes other than specified undersection88JJA.

    Withdrawal of Application of Section 115BAD:
    If the Co-Operative Societies fail to meet any of the above-mentioned conditions when calculating their income in any of the previous years. The option becomes invalid in respect of the assessment year relevant to the previous year and subsequent assessment years, and other provisions of the act apply as if the option had not been exercised for that assessment year and subsequent assessment years.
     
  4. Section 119 A (Clause: 64):

    The Board shall adopt and declare a Taxpayer's Charter and issue such orders, instructions, directions or guidelines to other income-tax authorities as it may deem fit for the administration of such Charter[7].
     
  5. Section 194K (Clause: 80):

    Dividend Distribution Tax, or DDT, was repealed on April 1, 2020, and dividend income is now taxable in the hands of the receiver. Previously, S. 10(35) exempted dividends received on equity shares and mutual funds. This income is now taxed at slab rates by the government. If you pay dividends on mutual funds, you must deduct TDS in accordance with Section 194K of the Income Tax Act. If your total and complete dividend in a fiscal year exceeds Rs.5,000, you must calculate this deduction at a rate of 10% on the number of dividends. S. 194K became effective on April 1, 2020, i.e. fiscal year 2020-21.

    Dividend income was taxed twice under previous income tax laws. Prior to the imposition of taxation, the company paid dividends to an asset management company, or AMC. And the profits were distributed to the unitholders by the AMC.

    As a result, an investor could either reinvest or earn dividend income. If you choose to earn dividend income, AMC must pay Dividend Distribution Tax again when the fund is distributed. DDT, on the other hand, was abolished after the Central Government implemented a new tax regime, and now only AMC is required to deduct TDS at a rate of 10% when dividends are distributed. However, the dividend per recipient should be greater than Rs. 5,000 in a fiscal year.

    Exceptions to Section 194K of the Income Tax Act:
    Section 194K of the Income Tax Act requires the Income Tax Department not to deduct TDS in the following circumstances:

    • If your dividend income is less than or equal to Rs. 5,000 in any fiscal year after 2020.
    • Section 194K of the Income Tax Act must also be waived in order for capital gain income to be exempted.
       
  6. Section 194O (Clause 85):

    Section 194O was added to the Union Budget 2020. Section 194O requires an e-Commerce operator to deduct TDS when facilitating any sale of goods or providing services through an e-Commerce participant. Section 194-O TDS on e-commerce operators will be implemented on October 1, 2020.

    TDS of 1% should be deducted by e-commerce operators at the time of crediting the amount of sale of goods, services, or both to an e-commerce participant's account or at the time of making payment to an e-Commerce participant by any other mode, whichever is earlier.

    Participant in e-commerce who is a resident individual or HUF

    If the gross amount of sale of goods, services, or both during the previous year does not exceed Rs 5 lakh and the e-commerce participant has furnished his PAN or Aadhaar, the e-commerce operator is not required to deduct TDS.

    If an e-Commerce participant fails to provide his PAN or Aadhaar, TDS at the rate of 5% must be deducted, according to Section 206AA.

    Non-resident e-commerce participant

    As previously stated, an e-Commerce participant must be a resident of India. As a result, if the participant is a non-resident, no TDS will be deducted.

    Exceptions:
    This section does not apply to non-resident e-Commerce participants.

    Only resident individuals and HUFs have a ceiling limit of Rs 5 lakh. As a result, an e-Commerce operator is exempt from deducting TDS if the amount paid or credited to individuals/HUF during a fiscal year does not exceed Rs 5 lakh.
     
  7. Section 234 G (Clause 96):

    Defaults that are subject to a late fee under Section 234G
    Late fees are imposed under Section 234G for the following defaults:
    • The issuance of a statement and certificate, as specified in section 35(1A) of the Income Tax Act, is the default; or
    • The issuance of a statement and certificate is the default under the provisions of Section 80G(5) of the Income Tax Act.

    Details of statement/ certificates referred under section 234G:
    For understanding the late fee provisions, it is important to go through the details of the statement and certificate as referred under section 234G of the Income Tax Act. The same is tabulated hereunder:
    Statement/ certificate Relevant section Particulars
    Statement Section 35(1A) clause (i) Statement in Form No. 10BD is to be filed by the reporting person within 31st May immediately following the Financial Year in which the donation is received. Please refer to rule 18AB of the Income Tax Rules for more details about the statement.
    Certificate Section 35(1A) clause (ii) Certificate of donation in Form No. 10BE is to be furnished to the donor within 31st May immediately following the Financial Year in which the donation is received.
    Statement Section 80G(5) clause (viii) Statement in Form No. 10BD is to be filed by the reporting person within 31st May immediately following the Financial Year in which the donation is received. Please refer to rule 18AB of the Income Tax Rules for more details about the statement.
    Certificate Section 80G(5) clause (ix) Certificate of donation in Form No. 10BE is to be furnished to the donor within 31st May immediately following the Financial Year in which the donation is received.

  8. Section 271AAD (Clause 100):

    A new provision has been enacted that provides for a penalty levy on an individual if it is discovered during any proceeding under the Act that there is I a false entry in that person's account books or (ii) any entry relating to the calculation of that person's total income has been omitted in order to avoid tax liability.

    The new section 271AAD was added to penalise the individual keeping account books if an entry related to total income measurement was incorrectly entered or omitted.

    The penalty owed by the person in question is equal to the total of the false or omitted entries. It has also been stipulated that any other person who in any way induces or causes a person to make a false entry, or omits or causes any entry to be omitted, shall pay a sum equal to to the aggregate amount of any false entry or omitted entry by way of a penalty.
     
  9. Section 271K (Clause 101):

    Without prejudice to the provisions of this Act, the Assessing Officer may direct that a sum not less than ten thousand rupees but which may extend to one lakh rupees shall be paid by way of penalty by:
    1. The research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia), of sub-section (1) of section 35, if it fails to deliver or cause to be delivered a statement within the time prescribed under clause (i), or furnish a certificate prescribed under clause (ii) of sub-section (1A) of that section; or
       
    2. The institution or fund, if it fails to deliver or cause to be delivered a statement within the time prescribed under clause (viii) of sub-section (5) of section 80G, or furnish a certificate prescribed under clause (ix) of the said sub-section.".[8]

     
  10. Section 285BB (Clause 103):

    The prescribed income-tax authority or the person authorised by such authority shall upload in the registered account of the assesses an annual information statement in such form and manner, within such time and along with such information, which is in the possession of an income-tax authority, as may be prescribed.

    Explanation.: For the purposes of this section, "registered account" means the electronic filing account registered by the assesses in designated portal, that is, the web portal designated as such by the prescribed income-tax authority or the person authorised by such authority.'.[9]

End-Notes:
  1. https://www.mea.gov.in/Images/pdf1/S7.pdf
  2. (1970) 1 SCR 479.
  3. (1956) 1 SCR 393.
  4. 1970) 1 SCR 479.
  5. Civil writ jur case 3296, 1975,111 of 1976.
  6. 1985 SCR, Supl. (1) 145 1985 SCALE (2)515
  7. https://egazette.nic.in/WriteReadData/2020/218938.pdf
  8. https://egazette.nic.in/WriteReadData/2020/218938.pdf
  9. https://egazette.nic.in/WriteReadData/2020/218938.pdf

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