Month: April 2017

The CBDT has issued Circular No. 16/2017 dated 25.04.2017 in which it has considered the issue whether income arising from letting out of premises /developed space along with other amenities in an Industrial Park/SEZ is to be charged under head ‘Profits and Gains of Business’ or under the head ‘Income from House Property’. The issue has been the subject manner of litigation in recent years. The assessees claim the letting out as business activity and that the income arising therefrom has to be charged to tax under the head ‘Profits and Gains of Business’. The Assessing Officers hold it to be chargeable under the head ‘Income from House Property’

The CBDT has issued Circular No. 15 of 2017 dated 21.04.2017 to clarify whether the removal of Cyprus from the list of notified jurisdictional areas under section 94A of the Income-tax Act, 1961 is with retrospective effect or not

The CBDT has vide Order No. 55 of 2017 dated 24.04.2017 ordered the postings and transfers of several officers in the grade of Assistant / Deputy Commissioner of Income Tax with immediate effect and until further orders.

The CBDT has vide Order No. 56 of 2017 ordered the postings and transfers of several officers in the grade of Additional/ Joint Commissioner of Income Tax with immediate effect and until further orders

Hon’ble Sushil Chandra, the Chairman of the CBDT, has addressed a letter dated 24.04.2017 to the top brass of the Income-tax department in which he has lamented that the CBDT is one of the Government Departments which receives the maximum number of public grievances. He has also lamented the fact that the grievances are not attended to by the AOs and remain pending for inordinately long periods. Presently, there are 3431 pending grievances which include a large number of overdue grievances. The CBDT Chief has directed the top brass of the department to personally monitor the disposal of the grievances and warned that it will be given due importance while evaluating the annual performance of the officers

The CBDT has issued Circular No. 13/2017 dated 11.04.2017 in which it has clarified the law regarding Liability to income-tax in India for a non-resident seafarer receiving remuneration in NRE (Non Resident External) account maintained with an Indian Bank. This Circular is important in view of the law laid down by the Kolkata Bench of the Tribunal in Tapas Kumar Bandopadhyay vs. DDIT where it was held that even if the salary of a non-resident seaman accrued outside India, it was taxable in India if the employer credited it to the assessee’s NRE account. In Utanka Roy vs. DIT (Calcutta High Court) it was clarified that salary received by a non-resident for services rendered abroad accrues outside India and is not chargeable to tax in India. The source of the receipt is not relevant.

The Constitution of the Bombay High Court’s Tax Bench w.e.f 10.04.2017 is as follows

The crackdown against corrupt officials of the income-tax department is continuing unabated. In the latest move, an Assessing Officer has been sentenced to imprisonment for 10 years for demanding and accepting a bribe of Rs. 5 lakh from a taxpayer

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The CBDT has issued a press release dated 5th April 2017 by which it has provided important clarification regarding the restriction imposed on cash transaction by sections 269ST & 271DA inserted by the Finance Act 2017 to the Income-tax Act. These sections provide that no person (other than those specified therein) shall receive an amount of two lakh rupees or more (a) in aggregate from a person in a day; (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account. The CBDT has clarified that the said cash transaction limit of Rs 2 lakh will not apply to withdrawal from banks, cooperative bank and post offices

After an inordinate delay, the Government has appointed four Vice Presidents for the ITAT. However, as the vacancies are for eight Vice Presidents, four more are required to be appointed on an emergent basis. Further, a permanent President of the Tribunal is also required to be appointed

The Finance Act 2017 received the assent of the President on the 31st March, 2017. A copy is available for download. There are several important and radical amendments made by the Finance Act 2017 to the Income-tax Act 1961 and other statutes