Under the revised guidelines, where the outstanding demand is disputed before Commissioner (Appeals), the Assessing Officer shall grant stay of demand till disposal of first appeal on payment of 15%of the disputed demand.
Any deviation from the standard pre-payment of 15% either requested by the assessee or by the Assessing Officer, shall be decided by the administrative Principal Commissioner or Commissioner, who after considering all relevant facts, shall decide the quantum/ proportion of demand to be paid by the assessee as lump sum payment for granting a stay of the balance demand.
In case the assessee is still aggrieved after the required stay of demand is granted, he may approach to the administrative Principal Commissioner or Commissioner for a review of decision of the Assessing Officer
However, such charge or transfer shall not be void if it is made—
(i) for adequate consideration and without notice of the pendency of such proceeding or, as the case may be, without notice of such tax or other sum payable by the assessee ; or
(ii) with the previous permission of the Assessing Officer.
Threshold limit: This section applies to cases where the amount of tax or other sum payable or likely to be payable exceeds Rs 5,000 and the assets charged or transferred exceed Rs 10,000 in value.
Note: “Assets” means land, building, machinery, plant, shares, securities and fixed deposits in banks, to the extent to which any of the assets aforesaid does not form part of the stock-in-trade of the business of the assessee.
(i) Where the property admits of a physical division– a physical division of the property. However a physical division of the income without a physical division of the property producing the income shall not be deemed to be a partition; or
(ii) Where the property does not admit of a physical division- then such division as the property admits of, but a mere severance of status shall not be deemed to be a partition;
“Partial partition” means a partition which is partial as regards the persons constituting the Hindu undivided family, or the properties belonging to the Hindu undivided family, or both.
Income Tax Act, post 31-12-1978, does not recognise the concept of Partial Partition
Assessment after Total Partition of HUF- Sec 171
(1) Assessment as such: A HUF shall be assessed as undivided except where there has been a total partition.
(2) Inquiry before assessment: Where, at the time of making an assessment u/s 143 or 144, it is claimed by or on behalf of any member of a Hindu family assessed as undivided that a partition, has taken place among the members of such family, the Assessing Officer shall make an inquiry thereinto after giving notice of the inquiry to all the members of the family.
(3) Recording of findings: On the completion of the inquiry, the Assessing Officer shall record a finding as to whether there has been a total partial partition of the joint family property, and, if there has been such a partition, the date on which it has taken place.
(4) Consequence of total partition: Where a finding of total partition has been recorded by the Assessing Officer, and the partition took place during the previous year,—
(a) the total income of the joint family in respect of the period up to the date of partition shall be assessed as if no partition had taken place; and
(b) each member or group of members shall, in addition to any tax for which he or it may be separately liable and notwithstanding Sec 10(2), be jointly and severally liable for the tax on the income so assessed.
(5) Partition after previous year: Where a finding of total partition has been recorded by the Assessing Officer, and the partition took place after the expiry of the previous year, the total income of the previous year of the joint family shall be assessed as if no partition had taken place; and the provisions of clause 4(b) above shall, apply to the case.
(6) Recovery of tax: If the Assessing Officer finds after completion of the assessment of a Hindu undivided family that the family has already effected a partition, the Assessing Officer shall proceed to recover the tax from every person who was a member of the family before the partition, and every such person shall be jointly and severally liable for the tax on the income so assessed.
(7) Several liability: For the purposes of this section, the several liability of any member or group of members thereunder shall be computed according to the portion of the joint family property allotted to him or it at the partition, whether total or partial.
(8) Applicability of the section: The provisions of this section shall, apply in relation to the levy and collection of any penalty, interest, fine or other sum in respect of any period up to date of the partition, of a Hindu undivided family as they apply in relation to the levy and collection of tax in respect of any such period.
(9) Consequences of Partial Partition: Notwithstanding anything contained in the foregoing provisions of this section, where a partial partition has taken place after the 31-12-1978:
(a) no claim that such partial partition has taken place shall be inquired into
(b) such family shall continue to be liable to be assessed under this Act as if no such partial partition had taken place;
(c) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this Act by the family in respect of any period, whether before or after such partial partition;
(d) the several liability of any member or group of members aforesaid shall be computed according to the portion of the joint family property allotted to him or it at such partial partition,and the provisions of this Act shall apply accordingly.
In effect – the Income Tax Act, post 31-12-1978, does not recognise the concept of Partial Partition
Chapter XIIEA- Sec 115TCA
|Taxation of Income||Investor – fund enjoys pass through status
Investment income is exempt for a fund u/s 10(23DA)
|As applicable for the investor|
|Nature of Income||Same nature and in the same proportion in the hands of the investor as it is for the securitisation trust|
|Applicability of distribution tax||There shall be no distribution tax on incomes distributed by an investment fund|
|Deemed distribution of income||Any investment income of the investment fund, if not paid or credited to the investor shall be deemed to have been credited to the account of the investor on 31st March of the previous year in which he is entitled to receive|
|Furnishing information to the investor||In prescribed Form within prescribed time|
|Furnishing information to the Principal Commissioner /CIT||In prescribed Form within prescribed time|
Securitisation trust means a trust being a:
Any income which has been included in total income of the investor in a previous year, on accrual basis, shall not be included in the total income of such person in the previous year in which such income is actually paid to him by the investment fund