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ICICI-Videocon loan probe: PMLA appellate body upholds ED's property seizure in case against Chanda Kochhar

ICICI-Videocon loan probe: PMLA appellate body upholds ED's property seizure in case against Chanda Kochhar

Time of India6 days ago
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The Appellate Tribunal under the Prevention of Money Laundering Act has allowed the seizure of properties in a case involving former ICICI Bank chief executive Chanda Kochhar , her husband Deepak Kochhar and Videocon Group promoter Venugopal Dhoot , overturning a ruling of the Adjudicating Authority to release those.In its order on an appeal filed by the Enforcement Directorate that had attached the properties, the tribunal held that the Adjudicating Authority "ignored crucial evidence" and based its ruling on "irrelevant considerations", particularly on the role of Deepak Kochhar in managing NuPower Renewables (NRPL) and a Rs 64 crore loan that the company received from Videocon-linked entities.According to the investigating agencies - ED and the CBI - this ₹ 64 crore was a quid pro quid for helping the Videocon Group get a loan from ICICI Bank where Deepak Kochhar's wife was a top executive. The Kochhars and Dhoot have denied the allegations.The tribunal said the Adjudicating Authority placed undue emphasis on the shareholding structure of NRPL while overlooking material facts, including the control exercised by Deepak Kochhar as its managing director. On paper, the transfer of funds to NRPL may have been shown as from one Videocon Group company to another, "but if the veil is lifted, the affairs were under control of Deepak Kochhar", the tribunal said in its order pronounced recently.The tribunal ruled that the property transactions, including the transfer of a flat at CCI Chambers in South Mumbai were "nothing but proceeds of crime ". It noted that the flat purchased by a Videocon-linked entity for ₹3.25 crore was transferred to a family trust associated with Deepak Kochhar for just ₹11 lakh.It rejected the defence's claim that the sanctioning of the loan to the Videocon Group was a collective decision at ICICI Bank, saying that Chanda Kochhar's active role, lack of disclosure and urgency in approving the loan raised serious concerns. It said as per rules, Chanda Kochhar should not have attended the meeting of a committee that cleared the loan, but she not only participated but also sanctioned the loan under the urgent category."This is taken to be nothing but commission of crime which includes even the offence under Section 420 IPC (cheating and dishonestly inducing delivery of property)," the order states.It upheld the Adjudicating Authority's decision declining to confirm the attachment of ₹ 10.5 lakh seized during a raid on a Kochhar-linked company but confirmed the provisional attachment of all other properties.Holding that it did not find any illegality in the attachment, the tribunal said it "rather find perverse finding in the hands of the Adjudicating Authority on all the issues relevant to the case".
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Error in ITR Utility: Penal interest is automatically getting added to taxpayers who don't have to pay advance tax, check the details
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Time of India

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  • Time of India

Error in ITR Utility: Penal interest is automatically getting added to taxpayers who don't have to pay advance tax, check the details

Academy Empower your mind, elevate your skills What is the error with the ITR utility's Section 234C interest calculation? "As per the second proviso to section 234C(1) of the Income-tax Act, 1961, interest under this section is not leviable if the net tax liability, after reducing TDS, TCS etc. is less than Rs 10,000. However, it has been observed that the current version of the online ITR utility computes interest under section 234C without considering the effect of such TDS/ TCS credits. As a result, interest is erroneously calculated and populated even in cases where the net tax liability falls below the prescribed threshold (Rs 10,000)." "Although the field for section 234C interest remains editable in the utility, concerns persist as to whether manual overrides may lead to adverse outcomes during return processing, such as adjustments, CPC notices, or delays in refunds. However, it is pertinent to note that the said issue does not persist in offline Excel utility wherein the TDS and TCS credit are effectively provided." Excel Utility – ITR 2 (offline) Suresh Surana ITR-2 excel utility Online Interface – ITR 2 ITR Online utility What can happen if the tax department does not fix this issue? Excess payment of Section 234C interest: 'If this issue is not rectified by the tax department, it may lead to additional tax implications for taxpayers. Firstly, incorrect auto-computation of interest under section 234C, despite net tax liability being below Rs 10,000 may result in excess payment of interest, which is not legally warranted. This increases the effective tax outflow for the assessee without statutory basis.' 'If this issue is not rectified by the tax department, it may lead to additional tax implications for taxpayers. Firstly, incorrect auto-computation of interest under section 234C, despite net tax liability being below Rs 10,000 may result in excess payment of interest, which is not legally warranted. This increases the effective tax outflow for the assessee without statutory basis.' Tax notice: 'Secondly, if taxpayers opt to manually override the pre-filled interest field to reflect the correct amount, there is a risk of mismatches during return processing at CPC, potentially leading to system-generated intimations under section 143(1). These may propose adjustments on the grounds of discrepancy in self-assessment tax or interest computation, even though the taxpayer is in compliance with law.' 'Secondly, if taxpayers opt to manually override the pre-filled interest field to reflect the correct amount, there is a risk of mismatches during return processing at CPC, potentially leading to system-generated intimations under section 143(1). These may propose adjustments on the grounds of discrepancy in self-assessment tax or interest computation, even though the taxpayer is in compliance with law.' Delay in tax refund: 'Additionally, unresolved mismatches can cause delays in refund processing, particularly for salaried individuals or those with TDS or TCS driven refunds. In some cases, taxpayers may be compelled to respond to unnecessary notices or file rectification requests, increasing administrative burden.' What can taxpayers do? Mismatch with Department's Records: " If the ITR shows less interest than actually payable, it may result in processing mismatches, leading to refunds being withheld or delayed. If the ITR shows less interest than actually payable, it may result in processing mismatches, leading to refunds being withheld or delayed. Penalties or Notices: In rare cases, the department might treat it as under-reporting of tax liability, especially if the shortfall is significant or repetitive. 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Due date for payment of advance tax Advance tax to be payable On or before June 15 of the previous year At least 15% of advance tax On or before September 15 of the previous year At least 45% of advance tax On or before December 15 of the previous year At least 75% of advance tax On or before March 15 of the previous year 100% of advance tax Note: Any tax paid, on or before 31st March, shall also be treated as advance tax paid during the financial year. Chartered Accountant Aditi Bhardwaj shared on micro-blogging website X (formerly Twitter) that there is an error in calculating Section 234C interest in the Income Tax Return Utility. 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