TIOL-DDT 2675
01 09 2015
Tuesday

IN response to yesterday's DDT on the above subject, Mr.R.L. Kabra, Superintendent of Central Excise writes,

Kind attention is drawn to the issue of application of Monetary Limits while filing of appeal to Hon'ble Supreme Court / High Court / CESTAT /ITAT, which has been elaborately analysed in TIOL-DDT-2674 while reporting the judgement of Hon'ble Supreme Court in case of Commissioner of Income Tax Vs. Suman Dhamija - 2015-TIOL-195-SC-IT.

In case of Indirect Taxes, Hon'ble Gujarat High Court has also held in series of judgements that in view of Circular dated 17.08.2011, Tax Appeal involving the duty amount below Rs. 10 lakh is not maintainable before High Court and this Circular also applies to the pending appeal.

Now, an issue arises whether appeal in Hon'ble Supreme Court can be filed against such judgements of Hon'ble High Court, taking into account the Monetary Limit prescribed by the CBEC. The answer is a clear NO because the Monetary Limit of Rs. 25 Lakh for filing an appeal in Hon'ble Supreme Court is effective from 01.09.2011, whereas all the appeals dismissed by Hon'ble High Court has revenue involved below Rs. 10 Lakh

Therefore, in the case discussed in TIOL-DDT-2674 dated 31.08.2015, irrespective of the legality of the issue whether the said Circular should have been applied retrospectively or otherwise in the matters already pending before Hon'ble High Court, as far as appeal filed by the Income Tax Department in Hon'ble Supreme Court against such judgement of Hon'ble High Court is concerned, it is obvious that the said Appeal was filed in Hon'ble Supreme Court in spite of that case involving amount below monetary limit prescribed in the Instruction issued by CBDT itself. (views are personal)

Due Date for Filing IT Returns in Gujarat Extended

THE CBDT has extended the 'due-date' for filing Returns of Income from 31st August, 2015 to 7th September, 2015, in cases of Income-tax assessees in the State of Gujarat, who are liable to file their Income tax returns by 31st August, 2015.

This is on consideration of reports of dislocation of general life caused due to recent disturbances in the State.

CBDT Order Under Section 119 in F.No. 225/154/2015/ITA.II., Dated August 31, 2015

Manual Selection of Returns for Scrutiny - CBDT Issues Instructions

CBDT has laid down the procedure and criteria for manual selection of returns/cases for scrutiny during the financial-year 2015-2016:-

a) Cases involving addition in an earlier assessment year in excess of Rs. 10 lakhs on a substantial and recurring question of law or fact which is either confirmed in appeal or is pending before an appellate authority.

b) Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs. 10 crore or more on a substantial and recurring question of law or fact which is either confirmed in appeal or is pending before an appellate authority.

c) All assessments pertaining to Survey under section 133A of the Income-tax Act, 1961 excluding those cases where books of accounts, documents etc. were not impounded and returned income (excluding any disclosure made during the Survey) is not less than returned income of preceding assessment year. However, where assessee retracts the disclosure made during the Survey, such cases will not be covered by this exclusion.

d) Assessments in search and seizure cases to be made under section(s) 158B, 158BC, 158BD, 153A&153C read with section 143(3) of the Act and also for the returns filed for the assessment year relevant to the previous year in which authorization for search and seizure was executed u/s 132 or 132A of the Act.

e) Returns filed in response to notice under section 148 of the Act.

f) Cases where registration u/s 12AA of the IT Act has not been granted or has been cancelled by the CIT/DIT concerned, yet the assessee has been found to be claiming tax-exemption under section 11 of the Act. However, where such orders of the CIT/DIT have been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.

g) Cases where the approval already granted u/s 10(23C)/35(1)(ii)/35(1)(iii)/10(46) of the Act has been withdrawn by the Competent Authority, yet the assessee has been found claiming tax-exemption/benefit under the aforesaid provisions.

h) Cases in respect of which specific and verifiable information pointing out tax-evasion is given by Government Departments/Authorities. The Assessing Officer shall record reasons and take prior approval from jurisdictional Pr. CCIT/CCIT/Pr. DGIT/DGIT concerned before selecting such a case for scrutiny.

CBDT Instruction No. 08/2015., Dated August 31, 2015

Import of Metallic Waste and Scrap at JNCH Instructions

JAWAHARLAL Nehru Customs, Mumbai has issued instructions on Import of Metallic Waste and Scrap at JNCH.

Procedure regarding import of Metallic Waste and Scrap having Pre Shipment Inspection Certificate at the time of Import: import of metallic waste and scrap at JNCH will only be allowed, if importer furnishes to Customs a Pre-Shipment Inspection Certificate as per format in Appendix 2H from any of the Inspection & Certification agencies given in Appendix-2G of HBP 2015-20, as amended from time to time. In addition to the said Pre-Shipment Inspection Certificate, all other documents as required in compliance of Para 2.54 of HBP 2015-20 shall also be mandatory.

Procedure regarding import of certain categories of Processed Metallic Scrap at JNPT without Pre Shipment Inspection Certificate: JNPT has not made the Radiological Detection Facility fully operational. Accordingly till the time the Radiological Detection Facility at JNPT is made functional, the following procedure is prescribed for clearance of Specified categories of Metallic Scrap.

i. Importer shall have to get Post Shipment Inspection Certificate before clearance from any of the authorized agencies listed in Appendix 2G of Handbook of Procedures 2015-20, as amended from time to time.

ii. Importer shall have to submit the documents as prescribed in Para 2(a) & 2(c) of the DGFT Public Notice No.23/2015-20 dated 30.06.2015.

iii. The Importer shall have to submit one time Bank Guarantee for Rs.10,00,000 (Rupees Ten Lakhs Only) in the given format (enclosed as Annexure-I) against import of specified processed metallic scrap imported in compliance of the said DGFT public notice.

iv. The importer shall have to ensure that the containers are 100% scanned by the Customs Container Scanning Division and will have to produce proof of CSD scanning before Out of Charge.

v. The specified Processed Metallic Scrap will include the categories of scrap as given in Para 2(f) of the said public notice.

vi. In the event, the declaration given by the importer is found to be false / incorrect, the case would be adjudicated and re-exported, the importer shall be responsible for exporting back the contaminated consignment back to the exporting country at his risk and cost and shall also be liable for enforcement of bond/forfeiture of security amount, in addition to any other action under FT (D&R) Act 1992, Customs Act, 1962 or any other law in force.

JNCH Public Notice No. 62/2015., Dated August 27, 2015

Telangana to get back Rs. 1274 crores taken away from RBI by Income Tax Department

DDT reported this issue on 29.06.2015 - DDT 2629.

The income Tax Department had collected Rs. 1274 crores from the Reserve Bank of India belonging to the State of Telangana for the arrears owed by the AP Beverages Corporation of the erstwhile State of Andhra Pradesh.

DDT 2629 asked,

Understandably the State is worried; 1200 crores is big money even for a State. The State Chief Secretary and Finance Minister met the Union Finance Minister and urged him to ask the RBI to re-credit that amount to the State coffers. The State argues that RBI had transferred the money illegally and suddenly without any notice or court order.

What will the FM do? Will Telangana get its money back?

Yes! They are getting it back.

The Union Government has advised the RBI to reverse the amount without any prejudice to the rights of Income Tax. Further, RBI was advised to note that money from the Consolidated Fund of any State shall be transferred/withdrawn only after following the constitutional and legal requirements. (we reported this yesterday in our Mixed Buzz)

Does this mean that the action of the RBI in transferring the money to the Income Tax from the Consolidated Fund of Telangana was illegal/unconstitutional - as was the stance of the State Government?

Govt Warns against Babus Direct Representation to PM

GOVERNMENT has observed that in spite of directions, government servants including officers/ officials of para military forces and Army personnel continue to represent directly to the Prime Minister, Minister, Secretary (P) and other higher authorities.

As per the existing instructions, wherever, in any matter connected with his service rights or conditions, a Government servant wishes to press a claim or to seek redressal of a grievance, the proper course for him is to address his immediate official superior, or Head of his office, or such other authority at the appropriate level who is competent to deal with the matter in the organisation.

Government reiterates that:

1. Such submission of representations directly to other authorities by- passing the prescribed channel of communication, has to be viewed seriously and appropriate disciplinary action should be taken against those who violate these instructions.

2. This can rightly be treated as an unbecoming conduct attracting the provisions of Rule 3 (1) (hi) of the Central Civil Services (Conduct) Rules, 1964.

Government has also clarified that this would include all forms of communication including through e-mails or public grievances portal etc.

Hope this 'etc.' does not include facebook, twitter posts and Whatsapp messages!

Government also invites attention to the provision of Rule 20 of CCS (Conduct) Rules, 1964 prohibiting Government servants from bringing outside influence in respect of matter pertaining to his service matter. Representation by relatives of Government servant is also treated as outside influence.

DOPT Office Memorandum in F. No. 11013/08/2013-Estt.(A-III)., Dated August 31 2015.

New Numbering System in CESTAT

CESTAT in a Circular informs:

The following systems is proposed from 01/01/2015 (maybe what they mean is 01/01/2016) all appeals in CESTAT matters will be numbered using numbers in one series. The different benches will use five digit numbers in the block as indicated below.

Ahmedabad 10000-20000

Bangalore 20001-30000

Hyderabad 30001-40000

Chennai 40001-50000

Delhi 50001-60000

Chandigarh 60001-70000

Allahabad 70001-75000

Kolkata 75001-85000

Mumbai 85001-99000

From the above, it looks as if the new Benches at Allahabad, Chandigarh and Hyderabad will start functioning soon. What will be the number if they start a new Bench at some other location.? Perhaps that may not happen in the near future. The last time they opened a new Bench was in Ahmedabad nine years ago in October 2006.

CESTAT Circular F.No. 11(1)/CESTAT/Circular Order etc/2014., Dated August 27, 2015.

Karma Yoga Expert is New Revenue Secretary - Top Babus Shuffled

THERE has been an overhaul of top Secretaries of the Government of India.

The Revenue Secretary Shaktikanta Das is the new secretary, Department of Economic Affairs (DEA) in place of Rajiv Mehrishi who was to retire yesterday, but got a surprise appointment as the new Home Secretary.

The new Revenue Secretary is Dr. Hashmukh Adhia - a Ph.D in Yoga. He conducts classes on Karma yoga, management, relaxation etc. Normally he starts his lectures with a short yoga exercise. Maybe in the next conference of Chief Commissioners, he will first induce the top revenue officers to a peaceful state of mind and then talk about revenue.

Dr.Adhia is a gold medalist from IIM and has authored two books on Human Resource Management in Government.

He was Principal Secretary to the Chief Minister of Gujarat for three years from 2003 to 2006. And you know who was the CM.

Tariff Value of Gold slightly increased

GOVERNMENT has slightly increased the Tariff value of gold and decreased that of silver, reduced the tariff values of oils (except crude soya bean oil which sees a small hike) and brass scrap. The tariff value of Poppy seeds is hiked.

The Tariff values as on 14.08.2015 and with effect from 31.08.2015 are as under:

Notification No. 83/2015-Customs (NT), Dated: August 31, 2015

Until Tomorrow with more DDT

Have a nice day.

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