The CBDT has, as a measure for reducing litigation, issued Circular 21/2015 dated 10.12.2015 increasing the monetary limits for filing of appeals by the department before the ITAT and High Courts and SLP before the Supreme Court. The notable aspect is that the CBDT has directed that the said instruction shall apply retrospectively to pending appeals and that all appeals below the specified tax limits should be withdrawn/ not pressed. However, appeals before the Supreme Court are to be governed by the limits operative at the time that the appeal was filed

Pursuant to the CBDT’s directives regarding ‘Paperless Assessment Proceedings‘, ‘E-Sahyog Project To Avoid Physical Presence Of Taxpayers During Assessment‘ and ‘Redressal of grievances received from Taxpayers by email at Aayakar Sampark Kendra‘, the CBDT has issued a Notification dated 02.12.2015 by which it has amended the Income-tax Rules, 1962 to provide that for purposes of section 282(1) of the Act, service of notice, summons, requisition, order and other communication may be done by email

The CBDT has issued a directive dated 02.12.2015 stating that as on 01.11.2015, there were 2.07 lakh returns involving refund claims of Rs.659 crore for AY 2013-14 and 12.90 lakh returns involving Rs.4,837 crore for AY 2014-15 which are still pending for processing and issue of refunds. These returns have not been selected for scrutiny under CASS. It is stated that while reviewing the pendency of refunds, the Revenue Secretary has directed that refunds in respect of cases not selected under CASS and involving refund of less than Rs.50,000 for the assessment years 2013-14 and 2014-15 may be issued as early as possible. Based on this directive, the CBDT has “requested” the Chief Commissioners to “kindly advise” assessing officers to expeditiously process and determine refunds in non-CASS cases having claim of refund of less than Rs.50,000 and issue the same as early as possible. Whether the Assessing Officers will obey the directives of the Revenue Secretary and of the CBDT requires to be seen

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