1 minute read
Focus on compliance
from Taxmann's Budget Marathon | Corporate Taxation | E N Dwaraknath & Tapan Gupta – Partner | PwC
by Taxmann
Inventory valuation in audit
• To ensure that the inventory is valued in accordance with various provisions of law, it is proposed to enable the Tax Officer to direct to get the inventory valued by a cost accountant as nominated by the PCCIT/CCIT and furnish the report of inventory valuation in the prescribed form, applicable from April 01, 2023
Withholding of refund
• Proposed to integrate section 241A (that entitles tax authorities to withhold refund) with section 245 (that entitles to adjust refunds)
• Language used for substitution – Powers for withholding refund – not year specific unlike covered under section 241A
Business reorganization
• Section 170A introduced in 2022 for filing of modified return by the successor entity to give effect to order passed by any Tribunal or Court approving any scheme of business reorganization.
• Amendment proposed to provide that assessment/reassessment proceedings may be undertaken on the basis of modified tax return filed by the successor entity. Revised order to be passed in case assessment proceedings are already concluded before filing modified return.
