The CBDT has issued a Guidance Note dated 31.12.2015 to explain the manner of ensuring compliance with the reporting requirements provided in Rules 114F to 114H and Form 61B of the Income-tax Rules, 1962 which deal with Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS)
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CBDT Circular On Recording Of Satisfaction Note U/s 158BD/153C Of Income-tax Act
The CBDT has issued Circular No. 24/2015 dated 31.12.2015 in which it has explained the law relating to recording of satisfaction note by the AO under sections 158BD/153C of the Income-tax Act. The CBDT has drawn attention to the verdict of the Supreme Court in CIT vs. Calcutta Knitwears 362 ITR 673 (SC) in which the stages at which the satisfaction note has to be prepared have been set out. The CBDT has further clarified that even if the AO of the searched person and the “other person” is one and the same, then also he is required to record his satisfaction as has been held by the Courts. The CBDT has also directed that pending litigation with regard to recording of satisfaction note under section 158BD /153C should be withdrawn/not pressed if it does not meet the guidelines laid down by the Apex Court
CBDT Makes Electronic Filing Of Appeal To CIT(A) Mandatory
The CBDT has issued a press release dated 30.12.2015 stating that as part of the endeavour of the Income tax Department to digitise various functions of the Department for providing efficient taxpayer services, electronic filing of appeal before CIT(Appeals) is being made mandatory for persons who are required to file the return of income electronically. It is claimed that by this change “the burden of compliance on the taxpayers in appellate proceedings will be significantly reduced“.
Another Elite IRS Top-Brass Of Income-tax Dept Held By CBI For Corruption
The Central Bureau of Investigation (CBI) has issued a grim press release stating that a high-level IRS officer has been held for alleged corruption
Check Out The Rogues Gallery Of Defaulters Who Owe Income-tax Dept Rs. 1150 Crore
As part of the ‘name and shame’ campaign, the Income Tax department on Wednesday made public a third list of 18 tax defaulters including gold and diamond traders whose dues totalled around Rs 1,150 crore
CBDT Clarifies Important Issues On Scope Of Scrutiny In CASS Assessments
The CBDT has issued Instruction No. 20/2015 dated 29.12.2015 in which it has issued clarifications on several issues in order to facilitate the conduct of scrutiny assessments in cases selected through Computer Aided Scrutiny Selection (‘CASS’). The CBDT has also stated that as far as the returns selected for scrutiny through CASS-2015 are concerned, two type of cases have been selected for scrutiny in the current Financial Year – one is ‘Limited Scrutiny’ and other is Complete Scrutiny’. The assessees concerned have duly been intimated about their cases falling either in ‘Limited Scrutiny’ or ‘Complete Scrutiny’ through notices issued under section 143(2) of the Income-tax Act, 1961 (‘Act’). The procedure for handling ‘Limited Scrutiny’ cases has been explained in detail by the CBDT.
CBDT Frowns On Hardship To Taxpayers And Wastage Of Time By Issue Of Vague S. 143(2) Scrutiny Notices By AO
The CBDT has issued Instruction No. 19/2015 dated 29.12.2015 stating that instances have come to the notice of the Board that in cases selected under scrutiny, while issuing the first notice, Assessing Officers do not convey the specific compliance requirements like production of accounts, furnishing of documents, information, evidences, submission of other requisite particulars etc. Since the taxpayers or their authorized representatives are required to comply with the statutory notice issued by the Assessing Officer, they remain clueless about the information required to be submitted and their appearance before the Assessing Officer does not serve any fruitful purpose except recording of their presence. This causes undue hardship to the taxpayers and unnecessary wastage of their time. The CBDT has directed that Assessing Officers should first go through the returns of income which have been selected for scrutiny and identify the issues which require examination. The initial notice issued under section 143(2) of the Income-tax Act, 1961 should itself be accompanied with the questionnaire containing details of specific documents/information/evidences etc. that are required to be furnished by the taxpayer in connection with scrutiny assessment proceeding in their respective case.
CBDT Accepts High Court Verdict On Non-Applicability Of TDS U/s. 194A To Interest On Court-Directed Fixed Deposits
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
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
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