Notice Period u/s 143(2) slashed :

Any kind of discrepancy (like understating income) in your IT return form furnished after 1 April 2008 would be brought to your attention, soon. The IT department has virtually halved the period on this, from the earlier 12 months to the current six.
It asks for a notice to be issued under Section 143 (2) to the assessee within a period of 12 months of furnishing the returns. This made the notices received after the 12-month period invalid.
However new section 292 BB has been inserted to iron out such implications. Once the assessee has appeared in any of the IT proceedings or co-operated in any inquiry related to assessment or reassessment, such assessee cannot take objection to any proceedings or inquiry under the pretext that:
1) That the notice was not served upon him;
2) Not served upon him in time;
3) Served upon him in an improper manner.

Donations Disallowable Expenditure?

Donations to trusts can not be treated as business expenditure, the tax tribunal said while giving a ruling in a case involving an advocate and the tax authorities. The Income Tax Appellate Tribunal (ITAT) recently gave this ruling in a case pertaining to an advocate from Indore who claimed tax benefit on donation made to a charitable trust with instructions to use the money for buying books for the court library. Turning down the argument of the advocate that the money donated was business expenditure, the ITAT held, “No direct nexus has been established between the expenditure by way of donation and the profession of the assessee, such expenditure cannot be allowed deduction under section 37 of the IT Act (business expense).”