Pending IT refunds to be expedited

Central Board of Direct Taxes (CBDT) has issued directions for expediting pending refunds below Rs. 50,000/ for Assessment Year(s) 2013-14 and 2014-15 in all cases except those selected for scrutiny.

The Income-tax Department is committed to improving taxpayer services and redressing grievances in a timely manner.

The status of outstanding refunds was reviewed recently. Following the review, Central Board of Direct Taxes (CBDT) has issued directions to its field formations to expedite the issue of pending refunds below Rs. 50,000/ for assessment years 2013-14 and 2014-15 in all such cases which have not been selected for scrutiny. The field formations and the Central Processing Centre (CPC), Bengaluru have been directed to complete the process as early as possible.

This initiative is expected to significantly reduce taxpayer grievances and enhance the taxpayer satisfaction.

The communication is available on the website of the Department at www.incometaxindia.gov.in

-- CA Kasliwal Ambar

CBDT working towards making AO-taxpayer communication hassle-free through email

Use of email based communication for paperless Assessment Proceedings-reg.

F. No. 225/267/2015-ITA-II
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI

Dated: October 19, 2015

To

The Principal Chief Commissioners of Income-tax, Delhi / Mumbai / Bengaluru / Ahmedabad / Chennai

Subject: Use of email based communication for paperless Assessment Proceedings-reg.

1. In order to improve the taxpayer services, enhance the efficiency and to usher in a paperless environment for carrying out the assessment proceedings, CBDT has decided to initiate the concept of using email for corresponding with taxpayers and sending through emails the questionnaires, notice etc. at the time of scrutiny proceedings and getting responses from them using the same medium on a pilot basis. This would eliminate the necessity of visiting the Income-tax Offices by the taxpayers, particularly in smaller cases, involving limited issues and where taxpayer is able to provide details required by the AO without necessitating his physical presence.
2. Steps are being taken by CBDT to devise suitable mechanism for setting up a standardized platform for making such email based communications between the taxpayer and the Income-tax Department seamless and user friendly. To start with, it has been decided to launch a pilot project in this regard in five non-corporate charges at Delhi, Mumbai, Bengaluru, Ahmedabad & Chennai stations. Initially, 100 cases for e-hearing could be identified in each of these charges and major part of assessment processing should be conducted in electronic mode. Also, the cases covered under the aforesaid pilot project should be those which have been selected for scrutiny on the basis of AIR/CIB information or non-matching with 26AS-data. Consent of taxpayers should also be obtained in the beginning and cases of only willing taxpayers be considered under the pilot project. The officers of the Department, through their official e-mail IDs, can interact with the taxpayers at their e-mail IDs as mentioned in the respective returns of income.
3. Board desires that necessary steps may accordingly be taken for initiating the pilot project on top priority.

(Rohit Garg)

Deputy Secretary to the Government of India.

- CA Kasliwal Ambar

E-facility to view tax and computation sheet for demand raised by AO launched

Income tax Department enables e-facility to view tax and computation sheet for demand raised by Assessing Officer (AO).

Earlier when a taxpayer submitted an objection to an Outstanding Demand appearing in his case in "My Account"on e-filing portal of Income-tax Department, he was not able to view anything further except his own objection. If the demand was raised by CPC then assessee had to verify it by comparing his filed ITR with Sec. 143(1) Intimation. However, where the demand was raised by the jurisdictional Assessing officer then he had to visit the department for getting intimation under section 143(1) in the event of not getting it at communication address. During this process assessee had to face many difficulties and it took long time.

Now the facility to view tax and computation sheet for demand raised by Assessing Officer is made available to the assessee in the e-Filing portal. Thus he can now verify his return with the computation sheet and see the variance and reply accordingly to the department.

To view computation sheet, the assessee has to simply

1. Login to the e-filing portal
2. e-file
3. Click on 'Response to Outstanding Tax Demand'
4. Click on download button next to demand amount
5. Download the details in pdf

CA Kasliwal Ambar

PAN Allotment will be suspended in October

‪PAN‬ allotment will remain ‪‎suspended between 05.10.2015 to 09.10.2015.

The Income Tax Department is in the process of upgrading software applications. It is for information of PAN applicants that PAN allotment by Income Tax Department will remain suspended between 05.10.2015 to 09.10.2015 due to PAN data migration activity. However, PAN applications, through on­line and off­line modes, will continue to be received by PAN service centres of M/s NSDL and M/s UTIITSL. The back log of PAN applications will be cleared within three days. Inconvenience to taxpayers is regretted. Read more at: www.incometaxindiaefiling.gov.in

CBDT dividing United India

Modi Sir

Today's notification by CBDT reminded us the British policy of "Divide and Rule".

Today CBDT divided united India into states by not respecting the judgements of three High Courts of extending due dates. It extended due dates only those states where writs were filed, whereas Income Tax being the levy of centre, date should have been extended on PAN INDIA basis.

Are we expected to file writ in every state HIGH COURT for its implementation on PAN INDIA basis?

It really hurts and pains when bureaucracy does not listen to the elected representatives of an autonomous body.

Sir, please interfere and do some thing......

क्या यही हैं अच्छे दिन....अच्छे दिन आ गए पर किसके.......        

                                                                                          

Regards

CA Kasliwal Ambar

Mumbai

IMPORTANT UPDATES FOR CHARTERED ACCOUNTANTS - 24 Aug 2015

➡ IMPORTANTS NEWS

1. Govt. enables online filing of form FC-TRS for transfer of shares between NRs and Residents via e-Biz portal

➡ INCOME TAX

1. Even if advance forfeited by supplier wasn't allowable as bad-debt, yet it could be considered as business loss. 60 taxmann.com 82 (Guwahati - Trib.)

2. 60 taxmann.com 206 (Bombay)Where assessee- joint venture company did not execute contract work on its own and same was done by one of its constituents, as there was no finding of receipt of any income by assessee on account of said contract, same would not be taxable in its hands.

➡ BANKING AND CORPORATES LAWS
1. SEBI proposes to allow Infra Investment Trusts to invest in two level SPVs and to reduce sponsor's commitment.

➡ CST AND VAT LAWS
1. August 22, 2015[2015] 60 taxmann.com 191 (Karnataka) CST & VAT: Karnataka VAT - Only condition for making further reassessment under section 39(2) in addition to earlier reassessment is when authority takes notice of further evidence

2. The purchaser need not to reversed input tax credit unless seller has claimed refund in case of incentive given or credit note issued ruled by Delhi high Court.

➡ SERVICE TAX AND EXCISE LAWS.

1. Service Tax could not be levied to indivisible works contract prior to 1-6-2007.

2. 59 taxmann.com 460 (Bombay) Excise & Customs : Tribunal does not have power to dismiss appeal for default or for want of prosecution, without adjudication on merits; and if appeal has been so dismissed, Tribunal must restore same subject to reasonable conditions.

- CA Kasliwal Ambar

Rule-21A, Income-tax Rules

Rule-21A, Income-tax Rules

30[Relief when salary is paid in arrears or in advance, etc.

21A. 31[(1) Where, by reason of any portion of an assessee's salary being paid in arrears or in advance or, by reason of any portion of family pension received by an assessee being paid in arrears or, by reason of his having received in any one financial year salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, his income is assessed at a rate higher than that at which it would otherwise have been assessed, the relief to be granted under sub-section (1) of section 89 shall be—

(a) where any portion of the assessee's salary is received in arrears or in advance or, any portion of family pension is received by an assessee in arrears, in accordance with the provisions of sub-rule (2);(b) where the payment is in the nature of gratuity in respect of past services of the assessee extending over a period of not less than five years, in accordance with the provisions of sub-rule (3);(c) where the payment is in the nature of compensation received by the assessee from his employer or former employer at or in connection with the termination of his employment after continuous service for not less than three years and where the unexpired portion of his term of employment is also not less than three years, in accordance with the provisions of sub-rule (4);(d) where the payment is in commutation of pension, in accordance with the provisions of sub-rule (5); and(e) where the payment is not in the nature of salary paid in arrears or in advance or gratuity in respect of past services or compensation received at or in connection with the termination of employment or in commutation of pension, in accordance with the provisions of sub-rule (6).

(2)(a) In a case referred to in clause (a) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the salary is received in arrears or in advance or, in which the family pension is received in arrears (such salary or family pension being hereafter in this sub-rule referred to respectively as the additional salary or additional family pension, as the case may be, and such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by theamount, if any, by which the tax on the additional salary or additional family pension, calculated in the manner specified in clause (b), exceeds the tax or the aggregate tax on the additional salary or additional family pension, calculated in the manner specified in clause (c) or clause (d), as the case may be.

(b) Tax shall be calculated on the total income of the relevant previous year as reduced by the additional salary or additional family pension, as the case may be, as if the total income so reduced were the total income of the assessee, and the amount by which the tax so calculated falls short of the tax on the total income before such reduction shall, for the purposes of clause (a), be taken to be the tax on the additional salary or additional family pension, under this clause.

(c) Where the additional salary or additional family pension, as the case may be, relates to only one previous year, tax shall be calculated on the total income of the said previous year as increased by the additional salary or additional family pension, as if the total income so increased were the total income of the assessee, and the amountby which the tax so calculated exceeds the tax payable by the assessee in respect of the total income of the said previous year shall, for the purposes of clause (a), be taken to be the tax on the additional salary or additional family pension, under this clause.

(d) Where the additional salary or additional family pension, as the case may be, relates to more than one previous year,—

(i) the previous years to which the additional salary or additional family pension relates and the amount relating to each such previous year shall first be ascertained;(ii) tax shall, then, be calculated on the total income of each such previous year as increased by the amount relating to such previous year ascertained under sub-clause (i); as if the total income so increased were the total income of that previous year, and the amount by which the aggregate amount of tax in respect of the aforesaid previous years as calculated under sub-clause (ii) exceeds the aggregate amount of tax payable by the assessee in respect of the total income of the said previous years shall, for the purposes of clause (a), be taken to be the aggregate tax on the additional salary or additional family pension, under this clause.]

(3) (a) In a case referred to in clause (b) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment by way of gratuity is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by theamount, if any, by which the tax on theamount of the gratuity included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amount of such gratuity, calculated at the rate of tax determined under clause (b) or, as the case may be, clause (c).

(b) Where the payment by way of gratuity is made in respect of past services of the assessee extending over a period of not less than five years but less than fifteen years,—

(i) the total income of the assessee in respect of each of the two previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-half of the amount of the gratuity included in the total income of the relevant previous year, and the average rate of tax for each of the said two previous years shall be calculated as if the total income so increased were the total income of that previous year; and(ii) the average of the average rates of tax for the two previous years immediately preceding the relevant previous year, calculated in accordance with sub-clause (i), shall, for the purposes of clause (a), be the rate of tax determined under this clause.

(c) Where the payment by way of gratuity is made in respect of past services of the assessee extending over a period of not less than fifteen years,—

(i) the total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount of the gratuity included in the total income of the relevant previous year, and the average rate of tax for each of the said three previous years shall be calculated as if the total income so increased were the total income of that previous year; and(ii) the average of the average rates of tax for the three previous years immediately preceding the relevant previous year, calculated in accordance with sub-clause (i), shall, for the purposes of clause (a), be the rate of tax determined under this clause.

(4) (a) In a case referred to in clause (c) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment by way of compensation is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by theamount, if any, by which the tax on theamount of the compensation included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amountof such compensation, calculated at the rate of tax determined under clause (b).

(b) The total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount.

- CA Kasliwal Ambar

Tax benefits notified in the state of Bihar

Income-Tax Act 1961 Amended Through Finance Act 2015 to Provide Certain Tax Benefits to Notified Backward Areas in Specified States Including State of Bihar to Give

- These Areas an Opportunity to Grow Faster; 

- 21 Districts of Bihar Notified as Backward Areas; 

- Any Manufacturing Undertaking or Enterprise Set-Up During the Period From 01.04.2015 to 31.03.2020 in the Aforesaid Backward Areas of Bihar will be Eligible for 15% Additional Depreciation and 15% Investment Allowance Under the Income-Tax Act, on the Cost of Plant and Machinery Acquired and Installed by it During the Said Period

The provisions of the Income-tax Act 1961 have been amended through Finance Act 2015 to provide certain tax benefits to notified backward areas in specified States including State of Bihar to give these areas an opportunity to grow faster. To give effect to the amendment, the following 21 districts of Bihar have been notified as Backward Areas vide Notification No. S.O. 2241(E) dated 17.08.2015:

1. Patna
2. Nalanda
3. Bhojpur
4. Rohtas
5. Kaimur
6. Gaya
7. Jehanabad
8. Aurangabad
9. Nawada
10. Vaishali
11. Sheohar
12. Samastipur
13. Darbhanga
14. Madhubani
15. Purnea
16. Katihar
17. Araria

18. Jamui
19. Lakhisarai
20. Supaul
21. Muzaffarpur

Any manufacturing undertaking or enterprise set-up during the period from 01.04.2015 to 31.03.2020 in the aforesaid backward areas of Bihar will be eligible for 15% additional depreciation under Section 32(1)(iia) and 15% investment allowance under Section 32AD of the Income-tax Act, on the cost of plant and machinery acquired and installed by it during the said period. The aforesaid incentives are in addition to other tax benefits available under the Income-tax Act. Thus a manufacturing undertaking/enterprise set up in any of these areas during the aforesaid period will be eligible for 35% (instead of 20%) of additional depreciation. This would be over and above the normal depreciation of 15%. Besides, a company engaged in manufacturing will also be eligible for 30% (instead of 15%) of investment allowance if its investment in new plant and machinery during the period 1.4.2015 to 31.3.2017 exceeds Rs.25 crore.
Notification No. S.O. 2241(E) dated 17.08.2015 to this effect is available.

-CA Kasliwal Ambar

IMPORTANT NEWS & UPDATES FOR CHARTERED ACCOUNTANTS - 20th Aug 2015

➡ IMPORTANTS NEWS

1. Govt. notifies 'Challan No. ITNS 284' for depositing taxes under Black Money Act.

2. RBI grants approvals for 11 payment banks including Reliance, Airtel, Vodafone

➡ INCOME TAX

1. Compounding fee paid to Municipal Corporation is in nature of penalty disallowable.

2. 60 taxmann.com 287 (Chennai - Trib.) ITAT allows sec. 11 tax exemption to Tamil Nadu Cricket Association.

3. High Court has inherent power to review its own judgment, says Supreme Court.

4. 60 taxmann.com 135 (Bombay) No concealment penalty if sum treated as capital receipt was disclosed in notes to accounts and return.

➡ BANKING AND CORPORATES LAWS
1. 60 taxmann.com 285 (SAT - Mumbai) Where in guise of running real estate business, PACL was running sham Collective Investment Schemes (CIS) which were detrimental to interest of investors, decision of SEBI directing PACL to wind up existing CIS and refund money collected from investors with promised return could not faulted.

➡ CST AND VAT LAWS
1. 60 taxmann.com 123 (Gujarat) Gujarat VAT - Where Assessing Authority cancelled registration certificates of assessee on ground that alleged purchases made by it from two dealers were bogus and not genuine and even assessee had indulged into billing activities only, registration certificates had been rightly cancelled.

➡ SERVICE TAX AND EXCISE LAWS.
1. 60 taxmann.com 122 (SC): Wharfage charges and lease rent recovered by port authorities cannot be regarded as 'service' in relation to 'a vessel or goods' and cannot be said to be a service provided by 'port or person authorised by it'; hence, same is not liable to service tax under port services.

2. Excise :No personal penalty on directors where issue relates to interpretation of law and situation is revenue neutral.

- CA Kasliwal Ambar

PROFESSIONAL UPDATES & CA NEWS by CA Kasliwal Ambar- 20th August 2015

# IT: Interest u/s 234B - no direction had actually been given in the assessment order for payment of interest - Form I.T.N.S.150 contained a calculation of interest payable on the tax assessed - this Form must be treated as part of the assessment order in the wider sense - levy of interest confirmed (Supreme Court)

# ST: Franchise service - Nature of Receipt of course fees - Only because all the fees are provided in one Agreement does not necessarily lead to a conclusion that the different components of fees are only for the purpose of grant of franchise (CESTAT Mumbai)

# IT: Finance ministry mulls 1% Income Tax rebate for credit/debit card payments.

# IT: CBDT amends IT Rules to notify that computation of Period of Stay in India of an Indian Citizen being Member of Crew of a Ship shall be as per Voyage Discharge Certificate (VDC).

# IT: CBDT to clarify on the period for which foreign bank account details disclosures required under black money law through second set of FAQs on the black money.

# GST: Government pushing ahead with GST; Two verticals created for implementation.

# Vacancies: HDFC bank needs Credit Manager in Punjab, Haryana & Rajasthan. Contact: Mr. Raghav Mahajan (+917307211397) / Email: raghav.mahajan1@hdfcbank.com

- CA Kasliwal Ambar

Daily CA Updates - Wednesday - August 19

IMPORTANTS NEWS 

1. Last date for filing Dvat return for Q1 again extended to August 25,2015

➡INCOME TAX

1. CBDT notifies rules to determine period of stay of crew members of foreign bound ships in India. notification no 70/2015 dt Aug 17
2. 60 taxmann.com 246 (Uttarakhand).The amount of interest received on the refund of Income Tax is not includible in the amount on which the assessee is liable taxed under Section 44BB of the Act. B J SERVICES COMPANY vs ACIT
3. 60 taxmann.com 55 (Bombay) Where motive of assessee is not generation of profit but to provide training to needy women in order to equip or train them and make them self-confident and self-reliant and occasional sales or trust's own fund generation was for furthering objects of trust, proviso to section 2(15) would not apply.

Dit vs women's India trust

➡ BANKING AND CORPORATES LAWS

1. Investment by Category I and II AIFs in shares of start-ups shall be deemed to be investment in unlisted shares.
2. Takeover code not applicable to startups that are listed without making a public issue.
3. Delisting norms not applicable to securities listed by start-ups without making a public issue

➡CST AND VAT LAWS

1. Govt. tweaks Rules relating to reduction of tax credit under Delhi VAT in case sale at discount or incentive through credit note is recd . Notification dt Aug 12 no 650.
2. Officer-in-charge has no power to seize goods-in-transit with valid documents.Reckitt Benckiser india ltd vs state of tripura.

➡ SERVICE TAX AND EXCISE LAWS.

1. Delhi High Court asks dept. to respond to challenge made against amended provisions of Service Tax Audit in section 94(2)(k)and rule 5A(2). Mega cabs p ltd vs union of india.
2. Cement/steel used in construction of storage facility is eligible for Cenvat credit. Grasim Industries Ltd Vs Comm Excise Jaipur

- CA Kasliwal Ambar

Professional Updates Part 2 (August 17) by CA Kasliwal Ambar

Income Tax:

1) FROM ITAT, PUNE: Kunal Polymers Pvt. Ltd. Vs. DCIT, ITA No. 1859/PN/2012, order dt. 15.07.15: "provisions of section 14A r.w. Rule 8D would not apply in case of dividend on the shares held as stock-in-trade"

2)The date for filing ITR-V for returns e-Filed for A.Y 2013-14 (filed on or after 1st April 2014 till 31st March 2015) and for A.Y 2014-15 (filed on or after 1st April 2014 till 30th June 2015) extended till 31st October 2015. Notification no. 1/ 2015

3)ITAT sounds note of caution for frivolous appeal by revenue; it damages public faith. Filling of appeal with complete knowledge of its fate by the Revenue only reflects the mischievous adamancy to attempt to mislead the Tribunal and waste the time of the Court and the officers concerned.[2015] 60 taxmann.com 160 (Delhi - Trib.) IN THE ITAT DELHI BENCH 'E' ACIT v. R.

LBT Update

LBT Amnesty scheme date extended up to 31.8.2015

SERVICE TAX

Service Tax Commissioner Office is coming up with empanelment of CA/ICWA for service tax Audits. Apply at The Commissioner Service Tax Audit - I Comm, 17-B, IAEA house, I.P. Estate, New Delhi - 110002

COMPANIES ACT

MCA has initiated the process of the constitution of the NCLT & NCLAT and in this regard notified the vacancies for the post of Technical Member & Judicial Member.

PRIDE OF OUR PROFESSION

Our Hon. Past President Padmashri CA T.N.Manoharan appointed as Non Executive Chairman of leading PSU Bank -Canara. Bank.

- CA Kasliwal Ambar

Professional Updates August 17, 2015 by CA Kasliwal Ambar

Income Tax: Electronic Verification of Income Tax Returns for AY 2015-16. CBDT vide Notification No. 2/2015 dated 13th July 2015 introduced e-verification of ITRs. Download from the below link:
https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/EVC_notification.pdf

RBI: Vide Notification No. RBI/2015-16/152 dated 13 August, 2015 Government of India has approved the implementation of the Interest Subvention Scheme for the year 2015-16.

ICDS Update: Applicable from AY 2016-17 and onwards. Applicable to all corporates following mercantile system of accounting irrespective of income, turnover, asset size, etc. Relevant only for computing income under head "Profits and gains of business or profession" (PGBP) and "Income from other sources".

Case Study: DVAT - ITC - levy of VAT on sale price of transaction which is yet to take place / deemed sales - such levy cannot be sustained in law - Veer Service Station, Delhi Petrol Dealers Association & Another, The Commissioner, DVAT & Others - Delhi High Court

ICAI: Election 2015 - Draft List of Voters as on 1.4.2015 - Views/Suggestions on proposed Polling Booths - http://icai.org/post.html?post_id=11810

- CA Kasliwal Ambar