25 March 2015
Guidelines issued by the Hon’ble Gujarat High Court in the case of Sahkari Khand Udyog Mandal Ltd vs. ACIT (Gujarat High Court).
Guidelines issued by the Hon’ble Gujarat High Court in the case of Sahkari Khand Udyog Mandal Ltd vs. ACIT (Gujarat High Court).
S. 147: Strict guidelines laid down to streamline procedure for reopening of assessments
There are four important stages once the AO issues notice for reopening of the assessment. Such stages are:
(i) the assessee if he so wishes, may demand the reasons recorded by the AO after filing return in response to notice u/s 148 of the Act,
(ii) the AO supplying such reasons to the assessee,
(iii) the assessee raising objections to the notice for reopening and
(iiii) the AO disposing of the objections raised by the assessee.
With a view to streamlining this procedure, and to ensure, as far as possible, the AO is not faced with the unenviable task of completing the assessment proceedings in a few days left before the same became time barred, we would like to give certain directions of general implication which, we would expect, are followed by all concerned. While doing so, we are conscious that these stages are provided by the Supreme Court in GKN Driveshafts (India) Ltd 259 ITR 19 and we would be giving directions only to the extent the said judgment already does not provide for. We have noticed that considerably long time is consumed sometimes by the assessee demanding the reasons recorded by the Assessing Officer and sometimes the AO complying with such a request of the assessee. It is an accepted proposition that the reasons recorded by the AO are not confidential and the assessee whose assessment is being reopened has a right to know such reasons. We therefore thought that these two stages can be substantially eliminated by giving suitable directions. The further stage is of the assessee raising objections which often times is done after much delay and the last stage comes where the AO deals with such objections. This is yet another problem area where unduly long time is consumed by the AO. Under the circumstances, following directions are issued.
(1) Once the AO serves to an assessee a notice of reopening of assessment u/s 148 of the Income-tax Act, 1961, and within the time permitted in such notice, the assessee files his return of income in response to such notice, the AO shall supply the reasons recorded by him for issuing such notice within 30 days of the filing of the return by the assessee without waiting for the assessee to demand such reasons.
(2) Once the assessee receives such reasons, he would be expected to raise his objections, if he so desires, within 60 days of receipt of such reasons.
(3) If objections are received by the AO from the assessee within the time permitted hereinabove, the AO would dispose of the objections, as far as possible, within four months of date of receipt of the objections filed by the assessee.
(4) This is being done in order to ensure that sufficient time is available with the AO to frame the assessment after carrying out proper scrutiny. The requirement and the time-frame for supplying the reasons without being demanded by the assessee would be applicable only if the assessee files his return of income within the period permitted in the notice for reopening. Likewise the time frame for the AO to dispose of the objections would apply only if the assessee raises objections within the time provided hereinabove. This, however, would not mean that if in either case, the assessee misses the time limit, the procedure provided by the Supreme Court in GKN Driveshafts (India) Ltd would not apply. It only means that the time frame provided hereinabove would not apply in such cases.
(5) In the communication supplying the reasons recorded by the AO, he shall intimate to the assessee that he is expected to raise the objections within 60 days of receipt of the reasons and shall reproduce the directions contained in sub-para 1 to 4 hereinabove giving reference to this judgment of the High Court.
(6) The Chief Commissioner of Income Tax and Cadre Controlling Authority of the Gujarat State, shall issue a circular to all AOs for scrupulously carrying out the directions contained in this judgment
20 March 2015
notifications dated 19th March 2015 and amended 3 rules
MCA has issued notifications dated 19th March 2015 and amended 3 rules:
1. Companies (Meeting of Board & its Powers) Amendment Rules, 2015 : Chapter 12 :
Removed requirement of discussion of following items only by way of Resolution at the Board Meeting :
1. to take note of appointment(s) or removal(s) of one level below the Key Management Personnel,
2. to take note of the disclosure of director’s interest and shareholding,
3. to buy, sell investments held by the company (other than trade investments), constituting five percent or more of the paid up share capital and free reserves of the investee company,
4. to invite or accept or renew public deposits and related matters ,
5. to review or change the terms and conditions of public deposit,
6. to approve quarterly, half yearly and annual financial statements or financial results as the case may be.
View Notification at http://www.mca.gov.in/Ministry/pdf/Chapter12_Rules_19032015.pdf
2. Companies (Management and Administration Rules) Amendment Rules, 2015 : Chapter 7:
'Voting through electronic means'- substituted Rule 20 by defining few terms like cut off date, electronic voting system, agency etc. and provided clarity on evoting at General meeting venue etc.
View Notification at
http://www.mca.gov.in/Ministry/pdf/Chapter7_Rules_19032015.pdf
3. Companies (Share Capital and Debentures) Amendment Rules, 2015: Chapter 4 :
It permits 45 days to listed companies to issue duplicate share certificates, authorisation to any other person for signing share certificate even if the Company has company secretary, changes in certain time periods, etc.
View Notification at
http://www.mca.gov.in/Ministry/pdf/Chapter4_Rules_19032015.pdf
17 March 2015
Legal phrases
Useful for CAs... Various Legal Phrases Used in Law:-
1 Anything which you cannot do directly that you cannot do directly
2 Deeming fiction cannot be stretched beyonyd the purpose for which it is created
3 The words used in Law are not used for Nothing
4 To invoke Provision : To make use of particular provision
5 Ipso Facto: By this fact alone or because of this matter alone
6 'MAY' may be treated as 'SHALL' but 'SHALL' shall not be treated as 'MAY'
7 Tenable: Acceptable in law
8 Redundant Provision : Out of Force or Outdated Provision
9 Quasi : Almost Similar to
10 Quasi Criminal: Almost equal to criminal
11 Jurisprudence: Law relating to particular matter
12 Mensrea: Guilty Mind
13 Ibid: As printed earlier
14 Suo Moto: On its own
15 Prima Facie: On its face
16 Non est: What is not in existence / Non existing thing
17 Call in question: To challenge
18 De Nova: Completely New
19 Sine quo non: Most essential thing
20 Purposes of this Act: Proceeding must be pending
21 Reason to believe Vs Reason to suspect: Refer various caselaws
22 Derived from & attributable to: Derived from refers to direct connection with a
particular matter whereas attributable to refers to an indirect connection
23 Mutatis Mutandis: After making necessary changes as may be required
24 Discovery Vs Detection: Discovery is made by the assessee whereas detection is
done by the Assessing Officer
25 To Quash: The process of cancelling the proceeding of Assessing Authorities by
Judicial Authorities
26 So far as may be: To the extent possible
27 Travisity of Justice : A ridiculous interpretation of a very serious statement, making a
mockery of a very serious matter
28 To impugne : To challenge
29 Save as otherwise provided : Except to the extent as oppositely provided
30 If one section is overriding the other section : Use Words "Not withstanding
anything contained in ……"
31 If one section is superceded by the other section : Use words "Save as otherwise
provided……….."
32 Other provisions apply in General way: Use words "Without prejudice to the
provisions …………….."
33 Reckoned : Recognised, Counted, Calculated
34 Doctrine of Merger: When an order passed by the lower authority is superceded by
the higher authority
35 Doctrine : Principle or saying in general acceptance
36 In Pari Material Pavi Causa: Same material, same content {Eg. Sec. 24B of IT Act,
1922 is Pari Material with Sec. 159 of IT Act, 1961. In such a case a judgement given
in respect of section 24B would be valid in respect of sec. 159}
37 Per se : By itself
38 Cy Press : As near as possible
39 Tax is always charged, Interest is levied and Penalty is imposed
40 Deductions are admissible, Relief is granted.
41 Return is always furnished, Assessment order is made / passed.
42 De hors : Independent of
43 Order of Injunction of HC : Stay order.
44 Several Liability means separate liability. [Refer sections 168(3), 171(7), 179(1)
178(5) & 188A.]
45 Legatee is a person for whose benefit there exists an asset of a deceased
46 Locus Standi : Directly involved in relation or deal.
47 Garnishee Proceeding : The proceeding which gives Govt. the right to attach (i.e.
forcibly take over) any asset from a person who is defaulter.
48 Vitiate Proceedings : To make proceedings null, void.
49 Inter alia : Among other things.
50 Audit Altream partem : It is a principle of natural justice. According to this principle,
which is the principle in every civilized jurisprudence, a person against whom any
action is sought to be taken or a person whose rights or interests are to be affected
should be given a reasonable opportunity to defend himself.
51 Resjudicata : [Once the decision of HC comes then on that same point again appeal
cannot be made.] The issue of Law which has been already decided shall not be
pleaded for review.
52 In Limine : At the outset (i.e. at the beginning)
53 Suspended animus : An order under Appeal is not subject to any action by any
authority till the order disposing of the appeal is available.
54 Subjudice : Under an appeal to a court, decision awaited.
55 Adjudicate : Consider for judgement. A court adjudicates means gives its decision on
a particular matter.
56 Akin : Similar to; of the same type
Coterminus : Similar to; of the same type
57 Impediment : Obstacles or Hindrance.
58 Sine Di: For indefinite period.
59 To deduce : Logically come to the conclusion.
60 Purview : Scope
61 Bounty : Additional Advantage
62 Ad Hoc : Without any particular rate, percentage, proportion.
63 Ad infinitum : Without any Time limit.
64 Ad interim : In the Mean Time
65 Bonafide : Genuine
66 Surmises : Presumptions, own assumptions
67 Defacto : Infact
68 Defjure : In Law, irrespective of whatever the facts.
69 Ejusdem Generis : Of the same kind
70 Ex-gratia : As a matter of grace ir favour
71 Ignorantia Legis known excusat : Ignorance of law is not excused
72 Mesne Profit : Profit earned by somebody by wrongful possession of property.
73 Modus Operandi : Mode of Operation / Manner of working
74 Nexus : Close connection link.
75 Onus probandi : Onus of proof / The burden of Proof.
76 Non obnstante clause : That provision has superceding effect on any other provision
77 Raison D'etre : Reason or justification for existence.
78 Ratio Decidendi : Reason for deciding / Grounds for decision
79 Suijuris : of his own right.
80 Assessee engaged in ……………. : The activity should have started
81 Option Vs Discretion : Whenever choices is available to the assessee in respect of
any matter. Law uses the word at his option - for eg:
1. Sec 11(11) - Explanation to Sec. 11 (1)
2. Sec. 23(4)
82 amicus curiae : Friend of court; one who voluntarily or on invitation of the court, and
not on instructions of any party, helps the court in any judicial proceedings
83 audi alteram : hear the other side. Both sides should be heard before a decision is
arrived at
84 caveat emptor : let the purchaser beware. A ---------- implying that the buyer must
be cautious, as the risk is his and not that of the seller.
85 cestui que trust : a beneficiary under a trust, the person for whose benefit the trust is
created
86 ex officio : by virtue of an office.
87 ex parte : exkpression used to signify something done or said by one person not in the
presence of his opponent.
88 fait accompli : An accomplished act.
89 obiter diccum : an opinion of law not necessary to the decision. An exspression of
opinion (formed) by a judge on a question immaterial to the ratio decidendi, and
unnecessary for the decision of the particular case. It is no way binding on any court,
but may receive attention as being an opinion of the high authority.
90 pendente lite : during litigation.
91 per incuriam : through carelessness, through inadvertence. A decision of the court is
not binding precedent if given peer incuriam, that is, without the court's attention having
been drawn to the relevant authorities, or statutes.
92 pro tanto : to that extent, for so much, for as much as may be.
93 quid pro quo : the giving of one thing of value for another thing of value; one for the
other; thing given as compensation.
94 Ratio Decidendi : Reason for deciding / Grounds for decision
95 res integra : an untouched matter; a point without a precedent; a case of novel
impression.
96 rule njsi : a rule to show cause why a party should not do a certain act, or why the
object of the rule should not be enforced.
97 in personam : against the person; an act or preceeding done or directed with
reference to no specific person or with reference to all whom it might concern.
98 in rem : an act / proceeding done or directed with reference to no specific person or
with refernce to all whom it might concern.
99 inter vivos : between living persons.
100 intestate : a person is deemed to die intestate in respect of property of which he or she
has not made a testamentary disposition ("will") capable of taking effect.
101 intra vires : within the powers; within the authority given by law.
102 ipse dixit : he himself said it; there is no other authority.
103 ipso jure : by the law itself ; by the mere operation of law.
104 lis pendens : a pending suit.
105 rule absolute : when, having heard counsels, court directs the performance of that act
forthwith.
106 sine die : without delay.
107 stare decisis : to stand by things decided; to abide by precedents where the same
points come again in litigation.
108 status quo : existing condition.
109 sub judice : before a judge or court; pending decision of a competent court.
110 ultra vires : beyond one's powers...
13 March 2015
PF Administrative Charged Reduced
The Government of India issues notification on reducing the administrative charges under the Employees' Provident Funds Scheme, 1952
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The Ministry of Labour and Employment, Government of India, has issued a notification to revise the rate of administrative charges under the Employees' Provident Funds Scheme, 1952. The changes will be effective from 1 January 2015.
EPFO (Employees Provident Fund Organisation) has cut the administrative fee it charges from nearly eight lakh employers coming under the ambit of its social security schemes, effective from January 1st 2015.
The administrative charges have been reduced to 0.85% of basic wage from 1.10% as per a Labour Ministry Notification.
The decision in this regard was taken by the EPFO';s apex decision making body, the Central Board of Trustees (CBT), in February last year in its meeting.
According to the notification, the minimum monthly administrative charges will be Rs 75 for every non-functional firm having no (PF) contributing member and Rs 500 for any other establishments.
As many as 7.96 lakh firms were covered under the various social security schemes run by the EPFO as on March 31, 2014.
MCA Clarification on Loans and Advances to Employees
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS NEW DELHI
GENERAL CIRCULAR NO
04/2015, Dated: March 10, 2015
To
All Regional Directors,
All Registrar of Companies, All Stakeholders.
Subject: Clarification with regard to section 185 and 186 of the Companies Act, 2013 - loans and advances to employees-reg.
This Ministry has received a number of references seeking clarification on the applicability of provisions of section 186 of the Companies Act, 2013 relating to grant of loans and advances by Companies to their employees.
2. The issue has been examined and it is hereby clarified that loans and/or advances made by the companies to their employees, other than the managing or whole time directors (which is governed by section 185) are not governed by the requirements of section 186 of the Companies Act, 2013. This clarification will, however, be applicable if such loans/advances to employees are in accordance with the conditions of service applicable to employees and are also in accordance with the remuneration policy, in cases where such policy is required to be formulated.
3. This issues with the approval of the Secretary.
[F.No. 1/32/2013-CL.V]
(KMS Narayanan)
Assistant Director |
12 March 2015
Amnesty Scheme for retrospective Restoration of ICAI Membership
FYI-General Amnesty Scheme for retrospective Restoration of Membership
With a view to remove the hardship of such members whose name stood removed due to non-payment of membership fee, the Council has decided that such members be given an opportunity under the General Amnesty Scheme as one time dispensation for retrospective restoration of name keeping membership in continuity.An ANNOUNCEMENT regarding the scheme has already been hosted on our website icai.org Accordingly, such members may apply for restoration of their name retrospectively, irrespective of the period of such removal on payment of applicable membership fee for the intervening year(s), along with Form ‘9’ and the restoration fee of Rs. 1200/-. The said scheme shall be in force till 31st March 2015.The fees can also be remitted through on-line payment (visit www.icai.org) or through cheque/demand draft drawn in favour of ‘The Secretary, The Institute of Chartered Accountants of India’ payable at Mumbai and Form ‘9’ can be downloaded from the link http://220.227.161.86/8593form%209_final.pdfFor further assistance may please call us on 33671400/500.Please avail the benefits of this General Amnesty Scheme and restore your membership retrospectively.
01 March 2015
GNL-4
MCA introduces Form GNL-4 for filing addendum for rectification of defects or incompleteness
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MCA vide notification dated 24th February, 2015 has made amendment in Companies (Registration Offices and Fees) Rules, 2014 through Companies (Registration Offices and Fees) Amendment Rules, 2015 and the text of the said amendment is reproduced as below:-
In the Companies (Registration Offices and Fees) Rules, 2014,-
In rule 10, after sub-rule (6), the following sub-rule shall be inserted, namely:-
"7. Any further information or documents called for, in respect of application or e- form or document filed electronically with the Ministry of Corporate Affairs shall be furnished in form No. GNL4 as an addendum"
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Simplification of Registration Procedures in Service Tax- S.Tax Registration within 2 Days:-
Central Board of Excise and Customs specifies the following documentation, time limits and procedure with respect to filing of registration applications for single premises, which shall come into effect from 1-3-2015.
Applicants seeking registration for a single premises in service tax shall file the application online in the Automation of Central Excise and Service Tax (ACES) website www.aces.gov.in in Form ST-1.
(PAN, Email and Mobile No, are Mandatory for Registration)
Once the completed application form is filed in ACES, registration would be granted online within 2 days, thus initiating trust-based registration. On grant of registration, the applicant would also be enabled to electronically pay service tax.
Further, the applicant would not need a signed copy of the Registration Certificate as proof of registration. Registration Certificate downloaded from the ACES web site would be accepted as proof of registration dispensing with the need for a signed copy.
The applicant is required to submit a self attested copy of the mandatory documents by registered post/ Speed Post to the concerned Division, within 7 days of filing the Form ST-1 online, for the purposes of verification.
24 February 2015
Digital locker
Govt. Of india has introduced Digital locker in which you can keep copy of your important documents / certificate like Passport, pancard, driving license, educational certificate etc. With link of Adhar card
http://digitallocker.gov.in
Now no need to give any copy in government / bank etc. Just give them only link of your Aadhar card. (Good Initiative)
CTT on Agricultural Products
Govt. notifies new list of agricultural commodities which aren't "taxable commodities transactions"
COMMODITIES TRANSACTION TAX (FIRST AMENDMENT) RULES, 2015 - AMENDMENT IN RULE 3
NOTIFICATION NO.13/2015 [F.NO. 142/09/2013-TPL]/SO 424(E), DATED 10-2-2015
In exercise of the powers conferred by sub-sections (1) and (2) of section 133 of the Finance Act, 2013 (17 of 2013) (herein after referred to as the Act), the Central Government hereby makes the following rules to amend the Commodities Transaction Tax Rules, 2013, namely:—
1. (l) These rules may be called the Commodities Transaction Tax (First Amendment) Rules, 2015.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Commodities Transaction Tax Rules, 2013, for rule 3, the following rule shall be substituted, namely:—
"3. Agricultural commodities.— For the purposes of clause (7) of section 116 of the Act, the agricultural commodities shall be the following, namely:—
| (i) |
| Almond |
| (ii) |
| Barley |
| (iii) |
| Cardamom |
| (iv) |
| Castor Seed |
| (v) |
| Channa/Gram |
| (vi) |
| Copra |
| (vii) |
| Coriander/Dhaniya |
| (viii) |
| Cotton |
| (ix) |
| Guar Seed |
| (x) |
| Isabgul Seed |
| (xi) |
| Jeera (Cumin Seed) |
| (xii) |
| Kapas |
| (xiii) |
| Maize Feed/Maize |
| (xiv) |
| Pepper |
| (xv) |
| Potato |
| (xvi) |
| Rapeseed/Mustard Seed |
| (xvii) |
| Raw Jute |
| (xviii) |
| Red Chilli/Chillies |
| (xix) |
| Soya bean/seed |
| (xx) |
| Soymeal |
| (xxi) |
| Turmeric |
| (xxii) |
| Wheat |
| (xxiii) |
| Aniseed |
| (xxiv) |
| Arhar Chuni |
| (xxv) |
| Bajra |
| (xxvi) |
| Betelnuts |
| (xxvii) |
| Celeryseed |
| (xxviii) |
| Chara or Berseem (Including Chara seed or Berseem seed) |
| (xxix) |
| Cinnamon |
| (xxx) |
| Cloves |
| (xxxi) |
| Cotton pods |
| (xxxii) |
| Cotton seed |
| (xxxiii) |
| Ginger |
| (xxxiv) |
| Gram Dal |
| (xxxv) |
| Gram Husk (Gram Chilka) |
| (xxxvi) |
| Groundnut |
| (xxxvii) |
| Jowar |
| (xxxviii) |
| Kulthi |
| (xxxix) |
| Lakh (Khesari) |
| (xl) |
| Linseed |
| (xli) |
| Masur |
| (xlii) |
| Methi |
| (xliii) |
| Moth |
| (xliv) |
| Mung |
| (xlv) |
| Mung Chuni |
| (xlvi) |
| Mung Dal |
| (xlvii) |
| Nutmeg |
| (xlviii) |
| Onion |
| (xlix) |
| Peas |
| (l) |
| Ragi |
| (li) |
| Rice Bran |
| (lii) |
| Rice or Paddy |
| (liii) |
| Safflower |
| (liv) |
| Seedlac |
| (lv) |
| Sesamum (Til or Jiljilli) |
| (lvi) |
| Small Millets (KodanKulti, Kodra, Korra, Vargu, Sawan, Rala, Kakun, Samai, Vari and Banti) |
| (lvii) |
| Sunflower seed |
| (lviii) |
| Tur (Arhar) |
| (lix) |
| Tur Dal (Arhar dal) |
| (lx) |
| Urad (Mash) |
| (lxi) |
| Urad Dal.". |
23 February 2015
TARC Report
The Parthasarathi Shome-led Tax Administration Reforms Commission has submitted its fourth and final report to Finance Minister Arun Jaitley.
This report suggests many departures from existing methodologies including those on revenue forecasting.
One of the areas highlighted by the commission is the importance of research inputs in tax governance,
"The suggestive list of areas where research can be considered are very thought provoking, such as fairness in tax disputes, use of technology, performance management, trade and customs, etc," said Krupa Venkatesh, Senior Director, Deloitte in India.
20 February 2015
www.ebiz.gov.in
Now, access 11 new services on eBiz portal
Setting up a business in India may have just become a tad easier. Rather than visit various offices or websites, investors can now get as many as 14 services, ranging from submission of forms to obtaining licences, on the eBiz single-window portal.
The Department of Industrial Policy and Promotion (DIPP) has announced the launch of 11 Central services on the eBiz Government-to-Business portal spread across ministries and institutions. This takes the total number of such services to 14.
The services that have been integrated include four from the Corporate Affairs Ministry, two from the Reserve Bank of India, two from Central Board Of Direct Taxation, and one each from the Directorate-General of Foreign Trade, Employees' Provident Fund Organisation and the Petroleum & Explosives Safety Organisation.
At present, it takes about six months and 20 visits to various departments for an investor to get the mandatory clearances for starting a business, according to the DIPP.
The eBiz portal seeks to bring down the time and cost required to get the clearances and also significantly cuts down on legwork.
Commerce and Industry Minister Nirmala Sitharaman said: "The eBiz platform will now (with the integration of 14 services) provide end-to-end online submission and process of forms, including tracking and online payment. It strives to achieve horizontal integration across various verticals of the Centre, State and para-statal agencies."
India is hopeful that the project will help it to move up the World Bank's 'ease of doing business index', where it was ranked a low 142 among a total of 189 countries last year.
"We will try to ensure that more than 200 services related to investors and businesses will be rolled out across the country over the next few years," DIPP Secretary Amitabh Kant said.
The first three years following the launch of eBiz would be the pilot phase during which 50 services will be implemented across 10 States, including Andhra Pradesh, Delhi, Haryana, Maharashtra, Tamil Nadu, Odisha, Punjab, Rajasthan and West Bengal.
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