Month: April 2014

The CBDT’s view with regard to the assessee not being the “owner” runs counter to the law laid down in Noida Toll Bridge 213 Taxman 333 and several other judgements. In Swarna Tollway, the ITAT has conducted a thorough analysis of the entire law on the subject and concluded that the assessee has to be treated as the “owner” even though it has limited rights on the structure. The Tribunal relied on several judgements of the Supreme Court including Mysore Minerals 239 ITR 775 (SC) where the concept of “owner” has been considered in great detail

The CBDT has issued a letter dated 11.04.2014 pointing out that in a recent case, a scheme of amalgamation was designed to seek amalgamation with retrospective effect so as to claim set-off of losses of the amalgamated company with the profits of the amalgamating company. Though the department filed an intervention application in the High Court to object to the amalgamation, the same was dismissed on the ground that the department had no locus standi in the matter. The CBDT has stated that to avoid this situation again, the procedure prescribed in this behalf vide MCA’s Circular No. 1/2014 dated 15.01.2014 (pdf) for objecting to amalgamations etc which are prejudicial to the interests of the revenue should be followed

Hon’ble Justice R. V. Easwar rightly says that the book “Direct Taxes Glossary” by Hon’ble Shri. Rajendra, Accountant Member, ITAT, fulfils the long-felt need of tax practitioners for a handy digest of case laws

The CBDT has issued Circular No. 08/2014 dated 30.03.2014 to deal with the controversial topic as to whether, if the income of the firm is Nil on account of an exemption under Chapter III or deduction under Chapter VI-A of the Act, the partners will also be entitled to claim exemption u/s 10(2A) of the Act with respect to their share in the profits of the firm. The CBDT has clarified that the term “total income” in s. 10(2A) includes income which is exempt or deductible under various provisions of the Act. It is stated that the income of a firm is taxable only in the hands of the firm and can under no circumstances be taxed in the hands of the partner. The CBDT has made it clear that the entire income credited to the partners’ account in the firm would be exempt from tax in the hands of the partners, even if the firm is also not chargeable to tax on account of an exemption or deduction

The CBDT has, in a letter dated 31.03.2014 to Chief Commissioners, set out a “Central Action Plan” for the April to June 2014 Quarter. The said Action Plan sets out a time frame for handling several important issues such as correction of demand, recovery of demand, disposal of high-demand appeals by CIT(A), completion of s. 147 assessments etc, etc. The Chief Commissioners have been directed to circulate the said Action Plan amongst the officers for necessary action

The Rajasthan Tax Consultants Association and the Jaipur Tax Tribunal Bar have resolved to file a Writ Petition in the Hon’ble Rajasthan High Court to challenge the alleged inaction by the Government and the Hon’ble President of the ITAT against the alleged corrupt practices of the Hon’ble Accountant Member Shri. B. R. Jain, presently posted at the Jaipur Bench of the Tribunal

The Finance Ministry has released a revised and comprehensive “Direct Taxes Code 2013”. The said Code contains several significant changes with far-reaching implications to the law and practice of income-tax. The Code also seeks to make the law more simplified and comprehensible. There is specific emphasis in the Code on measures to tax tax evasion. The Finance Ministry has also issued a paper highlighting the salient features of the Direct Taxes Code 2013

The CBDT has vide Order No. 52 of 2014 dated 31.03.2014 announced the postings of 95 Assistant Commissioners of Income Tax (Probationers) in the Pay Scale of Rs. 15,600-39,100 (Plus Grade Pay of Rs. 5,400 in PB-3), on completion of training at National Academy of Direct Taxes, Nagpur in the Region of CCIT (CCA) / Station / Charge indicated against each with immediate effect and until further orders