RDG Study Center

Appeal Appeal refers to an act of referring the case/matter/situation to higher authority against the order passed by a lower authority in respect of that case or matter. It implies a complaint to a higher authority against the order or judgement of an administrative authority or appellate authority. If an assessee is not satisfied by an assessment order/any other order issued by any income tax authority and such an aggrieved assessee can present his case before specified authorities prescribed under Income Tax Act. Such prescribed authorities constitute appellate authorities. Various Appellate Authorities under Income Tax Act 1961 1. Appeal to the commissioner (Appeals) (sec 246(2)) Any assessee aggrieved by any of the following orders may appeal to the commissioner against such order: (i) Against an order passed by a Joint commissioner u/s 115VP      (3)(ii) or an order making the assessee liable to tax but where       he denies his liability...

REVISION BY COMMISSIONER 1. Revision of orders Prejudicial to Revenue: Section 263 of the Act gives powers to Chief Commissioner or Commissioner to review any orders passed by Assessing Officer and to pass such orders thereon as the circumstances of the case justify, While passing such orders he may enhance, cancel or modify an assessment or he may order a fresh assessment. The assessee has to be provided an opportunity of being heard in this case. No order shall be made under this section after the expiry of two years from the end of financial year in which the order sought to be revised was passed.                             But under section 263(3) an order of revision may be passed at any time in the case of an order which has been passed in the light of any finding or direction contained in an order of the Appellate Tribunal, High Court or the Supreme Court. Under this section, the Commissioner has...

THE POWER AND FUNCTIONS OF INCOME TAX AUTHORITIES: CBDT: 1. The board can declare any association whether incorporated or not and whether Indian, or Non Indian as company under the provision of Section 2(17) 2. The board has power to determine the jurisdiction of various authorities mentioned in this act. ( Section 118) 3. The board may issue directions for the exercise of powers and performance of the functions by all or any of these authorities. While issuing such direction the Board will keep in mind any of the following criteria such as: territorial area, persons or classes of person, incomes or classes of incomes and cases or classes of cases. (section 120(1) and (3) 4. The board may authorise by general or specific order, director general or director to perform the powers of any of the income tax authorities. (section 120) 5. The board may authorise any of the authorities to exercise its power concurrently with any pother authority. In case such notification is iss...

Central Board of Direct Taxes is the highest authority in the administrative set of the Income tax department. It was constituted under the provision of Central Board of Revenue Act 1963. The board functions under the control of Ministry of Finance, Government of India. Its jurisdiction is whole of India.  POWERS OF CBDT: The whole of income tax department is to be looked after by the board. It has to perform the function of administration, supervision and control of entire income tax structure in India. The orders and directions issued by the board are to be compared with all the subordinate authorities. The income tax Act provides following specific powers to the board: 1. The board can declare any association whether incorporated or not and whether Indian, or Non Indian as company under the provision of Section 2(17) 2. The board has power to determine the jurisdiction of various authorities mentioned in this act. ( Section 118) 3. The board may issue directions fo...

MEANING: Analysis of Financial Statements is the process of establishing and interpreting the quantitative relationship between various related items of financial statements to make qualitative judgement about the liquidity, long term solvency, operating efficiency and profitability of the enterprise. Types of Financial Statement Analysis: 1. Internal Analysis and External Analysis:  Internal Analysis is conducted by the management to analysis the financial performance and position of the enterprise. It is based on detailed records since internal Analyst has access to the detailed records of the enterprise.                                                           External Analysis is conducted by the outsiders such as short-term creditors, long term leaders, investors, government agencies, credit rating agencies. It is ba...

Analysis of Financial Statements is the process of establishing and interpreting the quantitative relationship between various related items of financial statements to make qualitative judgement about the liquidity, long term solvency, operating efficiency and profitability of the enterprise. Objectives of Financial Analysis: Some of the important objectives of Financial Analysis are as follows: 1. To determine liquidity(short term Solvency):   It helps in determining the ability of the enterprise to meet its short term obligations as and when they become due. 2 . To determine long term Solvency: it helps in determining the ability of the enterprise to pay the interest regularly and to repay the principal on maturity or in pre determined instalments at due dates. 3 . To determine operating efficiency with which resources are utilised  in generating revenue 4 . To determine profitability with respect to sales and investment. 5. To compare intra firm position: ...

Financial statements are historical documents which show the organised summaries of detailed information about the financial performance and financial position of an accounting entity for an accounting period The users of Financial Statement are as follows: 1. Investors:   The investors are interested in information on the risk and return on their investments. they need information to determine whether they should buy or hold or sell the shares.They are also interested in information which enables them to assess the ability of the enterprise to pay dividends. 2. Employees:   Employees and are interested in information about the stability and profitability of their employers.They are also interested in information which enables them to assess the ability of the enterprise to provide remuneration, retirement benefits and employment opportunities. 3. lenders:   Lenders are interested in information which enables them to determine whether their loans and ...