Month: July 2013

The CBDT has issued a Press Release stating that the due date for filing of returns u/s 139(1) of the Income-tax Act, 1961 is extended to August 5, 2013

The ITAT Bar Association has passed an important resolution in which it has offered objective and practical suggestions on how to tackle the menace of alleged corruption in the ITAT

The Central Bureau of Investigation (CBI) has issued a press release regarding a case registered against Shri. G. E. Veerabhadrappa, Vice-President of the Income Tax Appellate Tribunal, Mumbai u/s13(2) r/w 13(1)(e) of the Prevention of Corruption Act 1988 for alleged possession of unaccounted assets to the tune of Rs 3.92 crores. In response, Shri. G. E. Veerabhadrappa has issued a brief statement

Pursuant to the judgement of the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273, the CBDT has issued Instruction No. 5/2013 F.No.275/03/2013-IT(B), dated 8.07.2013 stating that when an assessee approaches the AO with requisite details and particulars in the form of TDS certificate as evidence against any mismatched amount, the AO will grant credit of TDS to the assessee after ascertaining whether the deductor has made payment of the TDS to the Government

The CBDT has issued Instruction No. 03/2013 dated 05.07.2013 with regard to the the directive issued by the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273 on the procedure to be followed on the receipt and disposal of rectification applications filed u/s 154 of the Act. The CBDT has set out a detailed procedure on where applications should be received, the maintenance of registers and their disposal. The CBDT has also issued Instruction No. 04/2013 dated 05.07.2013 with regard to the directive issued by the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273 that the demand should not be enforced in cases where no intimation u/s 143(1) was send by the field authorities in respect of returns which were processed prior to 31.03.2010.

In July 2012, the Prime Minister constituted a Committee to Review Taxation of Development Centers and the lT Sector under the Chairmanship of Mr. N Rangachary, former Chairman CBDT & IRDA. Several eminent tax professionals are a part of the Committee. The Committee has issued a first report dated 14.09.2012 in which it has dealt with several important issues such as (i) approach to taxation of Development Centres, (ii) whether the TNMM or the Profit Split Method or the Global Profit method should be adopted to determine the arms’ length income of these Centres, (iii) general transfer pricing issues which are not specific to the IT Sector (iv) income-tax issues pertaining to the IT Sector such as (a) whether “on-site” development is an export activity, (b) the impact of retrospective amendment of the definition of royalty with regard to taxation of software and transmission charges. The Committee has made far-reaching recommendations on each of the issues

Constitution Of The Tax Bench In The Delhi High Court w.e.f. 01.07.2013