The All Gujarat Federation Of Tax Consultants has made a detailed representation to Shri. Arun Jaitley, the Hon’ble Finance Minister of India, with respect to Part XIV of the Finance Act, 2017 and notification of the Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other conditions of service of Members) Rules, 2017 in so far as it concerns the Income Tax Appellate Tribunal

The Commission observed that there is complete negligence and laxity in the public authority in dealing with the RTI applications. It is abundantly clear that such matters are being ignored and set aside without application of mind which reflects disrespect towards the RTI Act, 2005 itself. The Commission expressed its displeasure on the casual and callous approach adopted by the respondent in responding to the RTI application. It was felt that the conduct of respondent was against the spirit of the RTI Act, 2005 which was enacted to ensure greater transparency and effective access to the information

The CBDT has issued an Office Memorandum dated 14th June 2017 by which it has set up a ‘task force’ of high ranking officials of the Income-tax department. The task force has to recommend measures to implement recommendations made by another Committee on how to make ‘effective assessments’. The task force has to inter alia consider issues such as “taxpayer segmentation with differentiated treatment, creation of a new ecosystem for conducting scrutiny assessments characterized by end-to-end e-process for scrutiny assessment, flexible function-specific jurisdiction for certain actions and pre-verification of information mismatch before full-fledged scrutiny” and is required to draw up a “blue print” by 31st July 2017 for implementation of suggested recommendations

The CBDT has issued Order No. 105 of 2017 dated 16th June 2017 by which it has stated that the President has extended the ad-hoc appointment of several IRS Officers to the grade of Joint Commissioner of Income-tax from 1st April 2017 to 31st March 2018

The CBDT has issued Circular No. 19/2017 dated 12th June 2017 in which it has considered the important issue whether trade advances, which are in the nature of commercial transactions, would fall within the ambit of the word ‘advance’ in section 2(22)(e) of the Act and be assessable as “deemed dividends”

The CBDT has issued Circular No. 21/2017 dated 12th June 2017 in which it has dealt with the important issue of applicability of the provisions of section 194-I of the I.T. Act, 1961 on remittance of Passenger Service Fees (PSF) by an Airline to an Airport Operator. The CBDT has considered the issue in the light of the judgement of the High Court of Bombay in CIT vs. Jet Airways (India) Ltd. (ITA No.1181 of 2014 dated 04.01.2017 where it was held that even though the normal meaning of the word ‘rent’ stood expanded, the primary requirement is that the payment must be for the use of land and building and mere incidental /minor /insignificant use of the same while providing other facilities and service would not make it a payment for use of land and buildings so as to attract section 194-I of the Act

The CBDT has issued Circular No.20/2017 dated 12th June 2017 in which it has dealt with the important issue of adjustment of seized assets/requisitioned assets against the amount of any existing liability under section 132B of the Income-tax Act, 1961

The CBDT has issued a press release dated 19th June 2017 in which it has explained the implications of the Supreme Court’s verdict in Binoy Visam vs. UOI dealing with the constitutional validity of section 139AA of the Income-tax Act which makes the linkage of Aadhaar Card with the PAN. The CBDT has inter alia taken the view that from July 1, 2017 onwards, every person eligible to obtain Aadhaar must quote their Aadhaar number or their Aadhaar Enrolment ID number for filing of Income Tax Returns as well as for applications for PAN

The CBDT has vide order No. 98 of 2017 dated 09.06.2017 ordered the posting and transfer of several officers in the grade of Assistant and Deputy Commissioners of Income-tax with immediate effect and until further orders

The CBDT has issued Notification No. 46/2017/ F. No. 370142/6/2017-TPL dated 07.06.2017 by which it has amended the Safe Harbour Rules specified in the Income-tax Rules relating to transfer pricing for international transactions. The “safe harbours” stipulate circumstances in which the Transfer Pricing Officer (TPO) will accept the transfer price declared by the assessee. The Notification has added a category of international transaction being receipts of “low value-adding intra-group services”. The prevalent safe harbour margins have also been revised. The new Rules will go a long way to avoid disputes between the income-tax department and the assessees. All taxpayers and tax professionals are required to be well-versed with the terms of the safe harbour rules

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