TIOL-DDT 2696
01 10 2015
Thursday

IN a recent order the CESTAT observed,

By order dated 23.12.2003, although the Commissioner was of the opinion that penalty shall be imposable on the Managing Director, he did not finally impose. But to rectify his mistake, he issued a Corrigendum on 4.3.2004 imposing a penalty of Rs.25,000/- on the Managing Director. Penalty being imposable on the basis of mens rea, it should be on a personnel of the Managing Director but not on his designation. Therefore, the Corrigendum which has no force in the eyes of law does not become enforceable for which the appeal is allowed.

Please see 2015-TIOL-2091-CESTAT-MAD

Undeclared Assets Abroad - RBI Clarifications

THE Government of India has enacted The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Black Money Act) on May 26, 2015 to address the issue of undisclosed assets held abroad. It provides for separate taxation of income and assets acquired abroad from income not disclosed but chargeable to tax in India.

RBI has clarified that:

a) No proceedings shall lie under the Foreign Exchange Management Act, 1999 (FEMA) against the declarant with respect to an asset held abroad for which taxes and penalties under the provisions of Black Money Act have been paid.

b) No permission under FEMA will be required to dispose of the asset so declared and bring back the proceeds to India through banking channels within 180 days from the date of declaration.

c) In case the declarant wishes to hold the asset so declared, she/ he may apply to the Reserve Bank of India within 180 days from the date of declaration if such permission is necessary as on date of application. Such applications will be dealt by the Reserve Bank of India as per extant regulations. In case such permission is not granted, the asset will have to be disposed of within 180 days from the date of receipt of the communication from the Reserve Bank conveying refusal of permission or within such extended period as may be permitted by the Reserve Bank and proceeds brought back to India immediately through the banking channel.

AP (DIR Series) Circular No. 18/RBI, Dated: September 30, 2015

Income Tax Returns - Due Date Extended - for some States

AS is well known, there has been a strong demand, especially from chartered accountants for extending the due date for filing income tax returns those who are mandatorily required to get their accounts audited.

The CBDT was adamant, come what may, it will not extend the date. Fortunately, there are still courts in this country against the unfair might of the irresponsible bureaucrats.

Writ petitions were filed, in several High Courts. Yesterday we reported the Punjab & Haryana High Court judgement directing the CBDT to extend the date to October 31, 2015. The Gujarat High Court had also given a similar direction.

Yesterday DDT wrote, "Hopefully the Board will issue the directions today and not waste the Nation's money and time by approaching the Supreme Court.". They did, partly.

The Board has ordered that the returns of income due to be E-filed by 30th September, 2015 may be filed by 31st October, 2015 in cases of Income-tax assessees of the State(s) of Punjab and Haryana and Union Territory of Chandigarh. They have also issued a similar order for the assessees of Gujarat.

Yesterday the Bombay High Court delivered an order, "CBDT is directed to forthwith issue the order/ notification under Section 119 of the Income Tax Act and extend the due date for E-filing of the Income Tax Returns in respect of the assessee who are required to file return of income by 30th September, 2015 to 31st October, 2015."

Obviously, the Board did not get the Bombay High Court order by yesterday evening and so they did not issue the extension order for Maharashtra. It is learnt that the Orissa High Court has also passed a similar order.

So, the CBDT has different due dates for returns depending on the State where you reside - and you thought the Income Tax law is uniformly applicable all over India!

The Government trumpets a lot about avoiding frivolous litigation, ease of doing business, taxpayer service and such meaningless slogans while its officers arrogantly defeat every government policy. The CBDT wants to give this relief only in States where the respective High Courts have ordered extension of the due date. The very fact that three High Courts of the country have directed the CBDT to extend the date, should have convinced the CBDT that there is a genuine problem and assessees are being unnecessarily driven to courts at huge costs and unpardonable waste of time of the heavily burdened courts.

Why should the CBDT change its forms every year and confuse everybody and then refuse to extend the date even after a couple of High Courts have directed it do so. Is it not discrimination that an assessee in Chennai has to file the return on September 30, while an assessee in Mumbai can do it on October 31 - simply because there is an order from Bombay High Court? And will heavens fall if the CBDT extends the date in other States too?

Will CBDT go to Supreme Court? CBDT is keeping its options open. The extension order for the states of Punjab, Haryana and Gujarat, states that the order shall be subject to the outcome of any further appeal/SLP which the CBDT may file against the said judgment.

CBDT seems to be determined to keep our courts and lawyers busy; shouldn't they concentrate a little more on collecting taxes? Does the FM know what is happening in the Department?

Please also see our CobWeb today

CBDT Orders under Section 119., Dated September 30, 2015 + CBDT Orders under Section 119., Dated September 30, 2015

TDS - Non Deduction - Procedure Simplified

TAXPAYERS seeking non deduction of tax from certain incomes are required to file a self declaration in Form No. 15G or Form No.15H as per the provisions of Section 197A of the Income-tax Act, 1961 (‘the Act'). The Central Board of Direct taxes has simplified the format and procedure for self declaration of Form No.15G or 15H. The procedure for submission of the Forms by the deductor has also been simplified.

Now, a payee can submit the self-declaration either in paper form or electronically. The deductor will not deduct tax and will allot a Unique Identification Number (UIN) to all self-declarations in accordance with a well laid down procedure to be specified separately. The particulars of self declarations will have to be furnished by the deductor along with UIN in the quarterly TDS statements. The requirement of submitting physical copy of Form15G and 15H by the deductor to the income-tax authorities has been dispensed with.The deductor will, however be required to retain Form No.15G and 15H for seven years.

This comes into effect from today.

Settlement Commission can send case back if it finds that applicant has not co-operated

IN a judgement delivered yesterday, the Allahabad High Court observed, "Settlement Commission has to pass such order as it thinks fit and it has the power not only to provide the terms of the settlement but also to reject the application, in which eventuality, reasons have to be recorded. The power conferred on the Settlement Commission under Section 32-L to send the case back to the Central Excise Officer is in addition to the aforesaid powers of the Settlement Commission. Such a power given to the Settlement Commission under Section 32-L can be exercised, if it finds that any person who has made an application for settlement under Section 32-E, has not co-operated with the Settlement Commission in the proceedings before it."  

We bring you this order today. Please see Breaking News

CBEC gets 4 new Principal Chief Commissioners

THEY have made it! After nearly two years of their cadre review, CBEC has promoted four officers as Principal Chief Commissioners - they are

1. Deepa B Das Gupta

2. Ananya Ray

3. Sanjeev Behari

4. Rakesh Mishra.

The first Principal Chief Commissioner in the Department Deepa Das Gupta was promoted as Principal Chief Commissioner yesterday and she retired as Principal Chief Commissioner yesterday. She must have worked as Principal Chief Commissioner for a few minutes!

The Board has also given additional charge to two Chief Commissioners.

CBEC Office Order No. 139/2015, Dated: September 30, 2015 + CBEC Office Order No. 140/2015, Dated: September 30, 2015

Cigarettes and Other Tobacco Products -Health Warning

RULE 3(1)(a) of the Cigarettes and Other Tobacco Products (Packaging and Labelling) Rules, 2008 stipulates that every package of cigarettes and other tobacco products produced/ manufactured/ imported after 31st May, 2009 shall carry Specified Health Warning in the manner as prescribed in the said Rules.

CBEC had clarified that the officers at the level of Superintendents and above of the Customs & Central Excise department are empowered for entry, search and seizure only at the premises registered under the Central Excise & Customs.

The CBEC wants the field formations to be sensitized regarding the need to monitor and ensure that no tobacco products are cleared from the premise registered with the Central Excise department without bearing the specified health warnings and other requisites as prescribed.

CBEC letter F.No.221/09/2015-CX.6 dated September 01, 2015

Tariff Value of Gold and Silver slightly hiked

GOVERNMENT has slightly increased the Tariff value of gold and silver, reduced the tariff values of brass scrap and increased those of most of the oils. The tariff value of Poppy seeds and areca nuts remain unchanged.

The Tariff values as on 15.09.2015 and with effect from 30.09.2015 are as under:

Notification No. 96/2015-Customs (NT), Dated: September 30, 2015

Until Monday with more DDT

Have a nice weekend.

Mail your comments to vijaywrite@tiol.in