Page 230 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 13: Registration of Dealers

person who has rendered service only as 'forwarding agent' without rendering any service Notes
as 'clearing agent' would be deemed to have rendered both services, it would amount to
replacing the conjunctive 'and' by a disjunctive which is not possible. Besides, the learned
counsel for the Revenue failed to bring on record any material to show the word 'and'
should be construed as disjunctive. Further, Revenue had also not shown any 'trade practice'
which might lead to a necessary inference that service of one kind rendered was invariably
considered to comprise both. Therefore the word 'and' should be understood in a conjunctive
sense.

Note: Students may note that in the above case, the High Court has overruled the decision
in case of Medpro Pharma Pvt. Ltd. v. Commissioner 2006 (3) S.T.R. 355 (Tribunal-LB)
[reported in Select Cases-2006]. In Medpro Pharma, the large bench of the Tribunal had
held that the "clearing and forwarding operations" cannot be dissected into "clearing" and
"forwarding". Both fall in the common category and any service provided in that category
will attract service tax. Even if one segment of activities is not performed, the appellants
can be said to be engaged in the taxable service.
Source: http://220.227.161.86/20925frpubcd_bos1.pdf

13.6 Summary

 Every person having income more than 1,00,000/ 1,35,000/ 1,85,000 during the
previous year must file his return of income and pay tax on the income earned.
 This voluntary discloser of income and payment of tax is called self-assessment and it is
covered u/s 140A.
st
st
 The last date of filing of income tax return is 31 July or 31 October.
 The return filed after these dates is called belated return and if the return is belated then
the losses declared therein cannot be carried forward.
 A return of income can be revised in order to correct any information disclosed therein
earlier.
 On filing of income tax return the AO may either briefly examine the return of income on
the face of it or may undertake deep examination.
 If the return is not filed or assessee does not cooperate with the AO the best judgment
assessment may also be invoked by the AO.

13.7 Keywords

Assessment: Assessment means appraisal, evaluation, estimation, measurement, judgment etc.
In the context income tax law it means then evaluation, estimation, or measurement of income.
Assessing Officer: AO are those officers in the income tax office who are given the power to
assess the income of the assessee.
Best Judgment Assessment: Best Judgment Assessment, as the name indicates Best Judgment
Assessment means the computation of income and tax is undertaken by the AO himself, on the
basis of the best of his judgment.
Procedure: Procedure means a way, modus operandi, process, a method or a course of action for
completing a particular task.
Scrutiny: Scrutiny means detailed examination, analysis or inquiry into the income of a person
in order to detect any income concealed by the assessee.

LOVELY PROFESSIONAL UNIVERSITY 225