SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. Mere increase in turnover due to digital payment not to trigger past tax scrutiny: CBDT

Mere increase in turnover due to digital payment not to trigger past tax scrutiny: CBDT

13 Dec 2016 Evaluate

The Income Tax regulatory authority, Central Board of Direct Taxes (CBDT), trying to ally fear of tax terror, especially among the smaller and medium-sized business (SMEs) entities, who would be accepting digital payments for the first time in the back drop of demonetization, has clarified that an increase in turnover of a business owing to its accepting digital means of payment will not trigger reopening of cases of past years.

The recent initiatives of the government to curb black economy in the country has encouraged people to shift towards digital modes of payment, but raised fear that increased turnover in the current year may lead to reopening of earlier years’ cases involving lower turnover u/s 147 of the Income-tax Act, 1961 by the Assessing Officer causing undue harassment to tax payers.

CBDT in its circular has stated that by adopting the digital mode of payment, no financial transactions would remain undisclosed and consequently an enhanced turnover of business might get reflected in the books of accounts. It added that an apprehension was raised by the business community that increased turnover in the current year may lead to reopening of earlier years' cases where the turnover was lower. It clarified that reopening would cause undue harassment to taxpayers and added that mere increase in turnover, because of use of digital means of payment or otherwise, in a particular year cannot be a 'sole' reason to believe that income has escaped assessment in earlier years.”

It further advised the I-T officers not to reopen past assessments in cases, merely on the ground that the current year's turnover has increased. CBDT has clarified that reopening of cases u/s 147 of the Act is feasible only when the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year and not merely on the basis of any reason to suspect.

 

 

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×