The CBDT has issued Circular No. 20/ 2015 dated 02.12.2015 in which it has explained the entire law relating to the obligation of employers to deduct income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2015-16 under section 192 of the Act and Income-tax Rules, 1962

P Chidambaram, eminent senior advocate and former Finance Minister, has alleged that the raids conducted by the Income-tax department on Advantage Strategic Consulting Pvt Ltd and Vasan Eye Care, companies said to be connected to his son, Karti Chidamabaram, is a “malicious onslaught” by the Government on him. In reply to the allegations, the CBDT has issued a press release dated 01.12.2015 stating that the search action was based on “credible information of tax evasion and large scale financial irregularities” committed by the group. It is also claimed that “certain incriminating evidence indicative of tax evasion and financial irregularities have been recovered during the on-going investigation”. The CBDT has also clarified that there is no collateral purpose behind the search action and that no political person or his family member have been targeted

The CBDT has announced that Ms. Anita Kapur, former Chairperson, Central Board of Direct Taxes, who retired from government service on 30.11.2015, has been appointed ‘Adviser on Tax Reforms’ on contract basis with effect from 01.12.2015 for a period of six months or earlier, as may be decided by the Government. Her terms of reference are set out

The CBDT has issued Notification No. 4 /2015 dated 1st of December 2015 by which it has simplified the procedure for Form No.15G & 15H under Section 197A of the Income-tax Act read with Rule 29C of the Income tax Rules

The ICAI has addressed a letter dated 27.11.2015 to the Principal Commissioner of Income-tax, Chandigarh, raising objections to the alleged proposal of the department not to allow Chartered Accountants and non-Advocates to “practice law” in the course of proceedings before the tax authorities. The ICAI has pointed out that taxation is one of the “core-competence” areas of Chartered Accountants and that they have expertise in accounting, auditing and taxation. It is also pointed out that these subjects are dealt with in great depth in the CA curriculum and that the ICAI has dedicated committees on taxation. It is emphasized that a chartered accountant, on passing his final examination and completing his articled training, is an expert in taxation, accountancy, auditing, company law and other laws etc., and he is fully qualified to practice in these fields. The ICAI has also drawn attention to several legislation and judicial pronouncements to support its contention that CAs are qualified to practice taxation law and cannot be barred from the same.

The CBDT has issued a press release dated 26.11.2015 pointing out that after notification of ICDS, it has been brought to the notice of the CBDT by the stakeholders that certain provisions of ICDS may need further clarification/ guidance for proper implementation. These implementation issues raised by the stakeholders have been referred to an expert committee comprising of departmental officers and professionals and the committee is currently examining these issues. The CBDT has stated that in order to issue a comprehensive guidance/clarification on this matter, the stake holders and general public are requested to bring out issues/points which in their opinion would require further clarification/guidance for proper implementation of the provisions of the ICDS. These issues/points may be submitted by 15th December, 2015 at the email address (dirtpl3@nic.in) or by post at the stated address

The CBDT has issued a press release dated 20.11.2015 stating that the Finance Minister in his Budget Speech, 2015 has indicated that the rate of corporate tax will be reduced from 30% to 25% over the next four years along with corresponding phasing out of exemptions and deductions. This is a step towards simplification of tax laws, which is expected to bring about transparency and clarity. The CBDT has identified the precise provisions that will be affected as a result of the phasing out plan. The CBDT has invited comments on the aforesaid phasing out plan within 15 days

In National Petroleum Construction Company Vs. DIT in ITA Nos. 143, 144, 533/2013 and 795/2014, the Delhi High Court in its order dt. 13.08.2015, dt. 20.08.2015 and 28.09.2015 directed the Income Tax Department to formulate and implement a standard operating procedure on the following three issues:

(i) Issue No.1:- A mechanism should be put in place for immediate and seamless transfer of cases from one standing counsel to another so that unnecessary adjournments are not sought by the counsels on the ground of lack of formal order of allocation, want of instructions or papers. The lTD to ensure that in none of the matters there is a situation where (a) there is no one appearing for the lTD (b) even if they are, they have neither instructions nor papers. It will be responsibility of the lTD to ensure that the standing counsel who have been assigned the cases have the complete records. It should not be an excuse for Standing Counsel of the lTD to take adjournment on the ground that they have no instructions or that they do not have the case papers.

Pursuant to the solemn promise made by Prime Minister Narendra Modi that a mechanism would be set up to ensure that Assessing Officers are accountable for the unreasonable additions that they make in the assessment order, the CBDT has issued Instruction No. 17/2015 dated 09.11.2015 in which it has admitted that the tendency of the AOs to frame high-pitched and unreasonable assessment orders reflects harassment of taxpayers and leads to generation of unproductive work for the Department.

The CBDT has consequently set up a committee of high-ranking officials which will examine whether there is a prima-facie case of high-pitched assessment, non-observance of principles of natural justice, non-application of mind , gross negligence or lack of involvement of assessing officer. The Committee would ascertain whether the addition made in assessment order are not backed by any sound reason or logic, the provisions of law have grossly been misinterpreted or obvious and well established facts on records have out rightly been ignored. The Committee would also take into consideration whether the principles of natural justice have been followed by the assessing officer. If it is established that unreasonable and high-pitched additions have been made by the assessing officer, a report would be sent to the Pr. CCIT by the Local Committee who will then take suitable administrative action against the Assessing Officer. Further, the departmental position as determined by the Local Committee in such cases would be appropriately presented before the Appellate Authorities so that litigation is curtailed.