Direct Tax - Litigation
Direct Tax - Litigation
Income tax disputes arise from notices, assessments, reassessments, audits, surveys and penalty proceedings. How a matter is handled in the first response often decides how long it will last and how much it will cost.
At Taxpert Professionals, we assist businesses, promoters, professionals and individuals at every stage of the dispute cycle. We analyse the facts, the legal position and the evidence, assess the exposure, and prepare structured submissions for the relevant forum, from the Assessing Officer to the Commissioner (Appeals), the Income Tax Appellate Tribunal and, through counsel, the High Court and Supreme Court. Each matter is reviewed with its interest, penalty and contingent liability exposure in view, so that management can make informed decisions on provisioning, settlement and appeal.
Our Services
Service Description:
We assist organizations in strengthening financial performance through structured financial planning, profitability analysis, working capital optimization, and performance management frameworks. Our advisory enables management to gain deeper financial visibility and improve forecasting and control.
We assist in responding to income tax notices and managing scrutiny, reassessment and other assessment proceedings, including faceless proceedings conducted online. Our team examines the notice, tax period, legal provisions, timelines and information sought, and prepares replies backed by reconciliations, documents and legal submissions. We also review the validity of proceedings, including jurisdiction, limitation and procedural compliance, so that objections are raised at the right time.
Key Inclusions:
- Review of notices, intimations and questionnaires, and preparation of action plan
- Drafting of replies, reconciliations and supporting submissions
- Support in scrutiny assessments, including faceless proceedings
- Support in reassessment proceedings and review of the validity of such proceedings
- Preparation for personal hearings and virtual hearings
- Application for rectification of mistakes apparent from the record
- Review of assessment orders and identification of grounds for appeal
- Application for revision of orders, where available
- Advice on additions, disallowances and risk of adverse inference
- Yearly Tax Clearance Memo based on PPR (Probable–Possible–Remote) analysis
FAQs:
What should we do immediately after receiving an income tax notice?
Check the provision under which the notice is issued, the tax year, the response deadline and the information sought. A structured reply with reconciliations, legal submissions and evidence should be filed on time. Missing a deadline can weaken the defence or result in an order passed on the basis of available material. We review each notice and propose a response plan.
Can a reassessment notice be challenged?
Reassessment is permitted only on satisfaction of conditions and procedures prescribed in the law, including timelines and approvals. Where these are not met, the proceedings may be open to challenge. We examine the record and raise objections at the appropriate stage, alongside preparing the case on merits
Service Description:
We assist clients through the appellate process, beginning with the first appeal before the Commissioner (Appeals) and continuing to the Income Tax Appellate Tribunal, which is the final fact-finding forum. Our team evaluates the merits and strategy, drafts grounds of appeal and statements of fact, prepares paper books and written submissions, and supports hearing representation. Where matters involve substantial questions of law, we coordinate with senior counsel for references to the High Court and Supreme Court.
Key Inclusions:
- Evaluation of the merits of an assessment order and strategy for appeal
- Preparation and filing of the appeal before the Commissioner (Appeals), with grounds and statement of facts
- Preparation of written submissions and additional evidence, where permissible
- Preparation and filing of appeal and cross-objections before the Income Tax Appellate Tribunal
- Preparation of paper books, compilations and case-law summaries
- Representation at hearings, including virtual hearings
- Response to appeals filed by the Department
- Application for stay of demand pending appeal
- Post-order advisory, including compliance with orders and giving effect to appellate relief
- Coordination with counsel for High Court and Supreme Court matters
FAQs:
When should an appeal be filed, and within what time?
An appeal must be filed within the limit prescribed for the relevant forum, which starts from service of the order. Delays require an application for condonation and may not be accepted. We track timelines from the date of the order and prepare the appeal well in advance.
Can a Chartered Accountant represent us before the Income Tax Appellate Tribunal?
Yes. Chartered Accountants are authorised to represent taxpayers before the Tribunal. For matters before the High Court or Supreme Court, we coordinate with counsel and prepare the case material.
Service Description:
We support groups with cross-border transactions in transfer pricing assessments and related disputes. Our team prepares defences backed by benchmarking and economic analysis, responds to adjustments, and supports the objection and appeal process, including dispute resolution options. We also assist on withholding tax, treaty and residency disputes arising from payments to and from non-residents.
Key Inclusions:
- Response to transfer pricing notices and questionnaires
- Review of documentation and benchmarking in support of the arm’s length position
- Support in transfer pricing assessment proceedings
- Preparation of objections before the Dispute Resolution Panel, where applicable
- Preparation of appeals before the Commissioner (Appeals) and the Tribunal
- Evaluation of advance pricing agreements and mutual agreement procedures
- Support in disputes on treaty benefits, withholding tax and permanent establishment
- Support in disputes on residency and taxability of foreign income
- Coordination with our international tax and FEMA team for consistent positions
FAQs:
What are the typical causes of transfer pricing disputes?
Common causes include the choice of comparables, treatment of intra-group services and royalties, allocation of costs, and adjustment for risks and functions. Well-prepared documentation and economic analysis are the best preventive and defensive tools.
How can double taxation arising from a transfer pricing adjustment be addressed?
Depending on the facts, relief may be sought through mutual agreement procedures under the applicable tax treaty or through advance pricing arrangements. We evaluate available routes and the related timelines and costs.
Service Description:
Search, survey and investigation matters require immediate and careful handling, since statements recorded and documents seized can influence later assessments. We provide on-the-spot advisory, review of records and statements, and structured support in post-search assessments and related proceedings.
Key Inclusions:
- Advisory on rights, obligations and conduct during a survey or search
- Review of documents, statements and seized material
- Preparation of submissions and explanations on seized material
- Support in post-search assessments and block assessments
- Support in proceedings relating to unexplained money, investments or expenditure
- Application and response in proceedings relating to retraction or clarification of statements
- Preparation of appeals against orders arising from search or survey
- Risk review and remedial compliance after the action is closed
FAQs:
What should a business do when a survey or search begins?
Cooperate with the authorised officers, verify the authorisation and scope, and contact your advisor immediately. Statements should be given carefully and with full understanding of the facts. We provide advisory and support from the start of the action through to the post-search assessment.
Can a statement recorded during a search be retracted?
A statement can be clarified or retracted in some cases, but its evidentiary value depends on the facts and on how promptly and credibly it is addressed. Early advice helps preserve the ability to explain the position.
Service Description:
We assist clients facing penalty proceedings, prosecution exposure and recovery of outstanding demands. Our team evaluates the exposure, prepares responses to show-cause notices, advises on compounding and settlement options, and manages demand through stay, instalment and adjustment requests. We also review the availability of alternative dispute resolution mechanisms.
Key Inclusions:
- Response to show-cause notices in penalty proceedings
- Appeals against penalty orders
- Evaluation of prosecution exposure and advice on compounding
- Stay of demand and instalment applications
- Review of adjustment of refunds against demand
- Computation and verification of interest and penalty
- Evaluation of settlement, advance ruling and other dispute resolution routes
- Review of demand on the departmental portal and rectification of incorrect entries
- Periodic review of pending demands and litigations
FAQs:
Can a penalty be avoided if the tax addition is accepted?
Penalty depends on the specific default alleged and the explanation and evidence available. Accepting an addition does not automatically mean that penalty is leviable. We analyse the facts and the legal requirements, and prepare a reasoned response.
What happens if we do not pay the tax demand?
The Department can take recovery action, adjust refunds and levy interest. Timely applications for stay or instalments help manage this risk. We advise on the right course and ensure applications are filed in time.
