The CBDT has issued a directive dated 9 August, 2019 by which it has provided clarification with respect to valuation of shares of Startup Companies involving application of Section 56(2)(viib) of the I. T. Act, 1961. The clarification is intended to mitigate the hardships faced by start-up companies

The CBDT has vide Circular No. 16/2019 dated 7th August 2019 provided clarification with respect to assessment of Start up Companies involving application of section 56(2)(viib) of the Income-tax Act, 1961. The CBDT has made a clear demarcation of the inquiry or verification which can be made by the AO is cases relating to “complete scrutiny”” and “limited scrutiny”

The CBDT has issued Office Memorandum dated 9th May 2019 in which it has fairly decided to accept the verdict of the Bombay High Court in Chamber of Tax Consultants v. CBDT (2019) 263 Taxman 551 that the policy of grant of “incentives” to CsIT(A) for making enhancement and levying penalty transgresses the exercise of quasi-judicial powers & is wholly impermissible and invalid u/s 119. The Court held that “Incentives” have the propensity to influence the CsIT(A) and they will be tempted to pass an order in a particular manner so as to achieve a greater target of disposal. The CBDT has withdrawn the credit already granted to the CsIT(A)

The CBDT has issued Circular No. 18 of 2019 dated 8th August, 2019 in which it has provided important clarification in respect of filling-up of the ITR forms for the Assessment Year 2019-20. The clarification is in the nature of questions and answers and cover a wide-ranging spectrum of issues. The circular is expected to clear doubts in the minds of taxpayers and tax professionals

The Finance (No. 2) Act, 2019 received the assent of the President on the 1st August, 2019, and is now available for download

The CBDT has issued an important clarification regarding the requirement to furnish scrip wise details of long term capital gains in Schedule 112A and 115AD(1)(iii)