The CBDT has issued Circular No. 23/2015 dated 28.12.2015 stating that in the case of UCO Bank (Writ Petition No. 3563 of 2012), the Delhi High Court has held that the provisions of section 194A do not apply to fixed deposits made in the name of Registrar General of the Court on the directions of the Court during the pendency of proceedings before the Court. It is pointed out that in such cases, it is not known who the beneficiary of the fixed deposits will be till the Court passes the appropriate orders in the matter. The amount and year of receipt is also unascertainable. The High Court quashed Circular No. 8 of 2011 and stated that the person who is ultimately granted the funds would be determined by orders that are passed subsequently. The Board has accepted the aforesaid judgment and clarified that interest on FDRs made in the name of Registrar General of the Court or the depositor of the fund on the directions of the Court, will not be subject to TDS till the matter is decided by the Court. However, once the Court decides the ownership of the money lying in the fixed deposit, the provisions of section 194A will apply to the recipient of the income. The CBDT has also directed that such issues should not be contested in appeal and pending litigation, if any on the issue before various Courts/Tribunals should be withdrawn/not pressed upon
Author: editor
CBDT Issues Draft Guiding Principles for determination of Place of Effective Management (POEM) of a Company
The CBDT has issued a press release dated 23.12.2015 stating that the Finance Act, 2015 has amended, with effect from 01.04.2016, the provisions of Income-tax Act relating to determination of residence of a company. In accordance with the amended provisions a company would be said to be resident in India in any previous year, if it is an Indian company or its Place of Effective Management (POEM) in that year is in India. It is further stated that the Explanatory Memorandum to the Finance Bill, 2015 stated that a set of guiding principles for determination of POEM would be issued for the benefit of the taxpayers as well as the tax administration
CBDT Clarifies Law On Applicability Of Minimum Alternate Tax (MAT) On Foreign Companies For Period Prior To 01.04.2015
The CBDT has issued Instruction No. 18/2015 dated 23.12.2015 clarifying the position with regard to the applicability of Minimum Alternate Tax (MAT) on foreign companies for the period prior to 1.04.2015 in the wake of instruction No.9 dated 02/09/2015, Press Release dated 24.09.2015 and the decision of the Supreme Court in the case of Castleton Investment Ltd
Finance Ministry Invites Applications For Appointment To Post Of Members Of CBDT
The Department of Revenue, Ministry of Finance, has issued an Office Memorabdum dated 18.12.2015 stating that some posts of Members in the Central Board of Direct Taxes in the Department of Revenue in the pay scale of Rs. 80,000/- (Fixed) are likely to fall vacant in the next financial year i.e. 2016-17. The criteria for selection is set out. One of the conditions is that the applicants should have “high professional merit and excellence” and “impeccable reputation of integrity”. Eligible officers are required to forward their applications by 19.01.2016
Revenue Secretary Directs Mandatory Use Of Email To Facilitate Taxpayers’ Electronic Interface With Department
The CBDT has issued a letter dated 15.12.2015 stating that the Revenue Secretary has directed that henceforth any notice/letter/communication issued by any officer under Department of Revenue; including CBDT, its directorates and field formations; to the tax payers, members of public should invariably contain mention of email address and office phone numbers, of the officers signing such, communications/notice/letters for facilitating tax payers’ electronic interface with the Department. The CBDT has requested everyone to ensure that the above directions are strictly followed
CBDT Directs Dept To Extend Benefits Of Amendments To S. 43B Retrospectively In Light Of Apex Court Verdict In Alom Extrusions
Accordingly, w.c.f. 1.4.1988, the settled position is that if the assessee deposits any sum payable by it by way of tax, duty, cess or fee by whatever name called under any law for the time being in force, or any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, on or before the ‘due date’ applicable in his case for furnishing the return of income under section 139(1) or the Act, no disallowance can be made under section 43B of the Act
CBDT Relaxes Rules Regarding Furnishing Of Information In Respect Of Payments Made To Non-Residents
The CBDT has issued a press release dated 17.12.2015 stating that section 195 of the Income-tax Act (‘the Act’) empowers the Central Board of Direct Taxes to capture information in respect of payments made to non-residents, whether chargeable to tax or not. Rule 37BB of the Income-tax Rules has been amended to strike a balance between reducing the burden of compliance and collection of information under section 195 of the Act
ITAT Lauds CBDT For ‘Taxpayer Friendly’ Measure And Disposes Off 1000’s Of Low Tax Effect Dept Appeals On War Footing
The ITAT has complimented the CBDT for issuing Circular No. 21/ 2015 dated 10th December 2015 and stating therein that all pending appeals of the department with a monetary limit not exceeding Rs. 10,00,000 shall be withdrawn/ not pressed. The ITAT has acted with remarkable alacrity to give effect to the said Circular of the CBDT. Over the weekend and past few days, the Hon’ble Members, Registrar and Bench Clerks have been involved in sorting through thousands of appeals and identifying the ones that qualify for dismissal pursuant to the said Circular
CBDT Takes Note Of Strictures Passed By Bombay High Court And Sets Up Collegium To Withdraw Frivolous Appeals
The CBDT has issued an Office Memorandum dated 10.12.2015 in which it is noted that in a recent decision of the Bombay High Court (DIT vs. Credit Agricole Indosuez), the manner in which the department files appeals was termed as being “casual and callous”. It is noted that there are other cases where the ITAT and the High Courts have adversely commented on the filing of frivolous appeals by the department. The CBDT has accordingly decided to extend the Collegium system to consider withdrawal of appeals filed in the High Court which are no longer considered prosecutable. The CBDT has specified the responsibilities of the CCIT in each region and also directed that a monthly report of the progress be submitted to it
ITAT Directive Regarding Disposal Of Dept Appeals With Low Tax Effect In Wake Of CBDT Circular
With a view to implement Circular No. 21/2015 dated 10th December 2015 issued by the CBDT (which states that even pending appeals of the department with a monetary tax effect of Rs. 10,00,000 or less should be withdrawn/ not pressed), Hon’ble Justice (Retd) Dev Darshan Sud, President of the ITAT, has issued a notice dated 14.12.2015 requesting all representatives to furnish a list of departmental appeals where the tax effect does not exceed the monetary limit of Rs. 10 lakhs and which are covered by the said Circular. It is stated that all possible efforts should be made to furnish such information containing requisite details, viz., appeal number, date of filing, name of the assessee etc. in the office of the Assistant Registrar (Judicial) as expeditiously as possible, preferably by 18th December, 2015
Recent Comments