CBDT issues directions on filing of Appeal on merit on 7 Issues
It has been unambiguously and expressly provided that adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:
F. No . 279/Misc/M-93/2018-ITJ
Government of India
Ministry of Finance
Department of Revenue
Central Board Direct Taxes
Judicial Section
New Delhi, 11th December 2018
To
All Pr. Chief Commissioners of Income tax Madam/Sir,
Sub:- Clarification w.r.t para 10 of Circular 3 of 2018 -Reg.
Instructions were issued vide CBDT Circular No. 3 of 2018 dated 11.07.2018, to the effect that SLPs/appeals should not be filed in cases where the tax effect does not exceed the monetary limits specified under para 3 of the said Circular. It was also clarified therein that appeal should not merely be filed because the tax effect in the case exceeds the monetary limits prescribed in the said Circular.
2. In para 10 of the said Circular read with Board’s letter issued vide No. 279 /Misc.142/2007 -ITJ(Pt) dated 20.08.2018, it has been unambiguously and expressly provided that adverse judgments relating to the following issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in para 3 above or there is no tax effect:
(a) Where the Constitutional validity of the provisions of an Act or Rule is under challenge, or
(b) Where Board’s order, Notification, Instruction or Circular has been held to be illegal or ultra vires, or
(c) Where Revenue Audit objection in the case has been accepted by the Department, or
(d) Where addition relates to undisclosed foreign income/undisclosed foreign assets (including financial assets) / undisclosed foreign bank account.
(e) Where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ ED/ DRI/ SFIO / Directorate General of GST Intelligence (DGGI).
(f) Cases where prosecution has been filed by the Department and is pending in the Court.”
3. The direction that appeals be ‘contested on merits’ in itself implies that there should not be any mechanical filing of appeals in these cases. It is therefore reiterated that the import and intent of para 10 of Circular 3 of 2018 is that even on issues mentioned in the said para, appeals against the adverse judgements should only be filed on merits.
4. The above may be brought to the notice of ll concerned. This issues with the approval of Member (A&J)
(Abhishek Gautam)
DCIT OSD (ITJ-1) , CBDT
Tel: 011-23741832
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Updates
1) MEF: Final Bank Branch Auditors’ Panel has been hostedat www.meficai.org till 14th December, 2018, thereafter the same will be sent to RBI.
2) Utility for filing GST Annual Return (GSTR 9 & GSTR 9C) likely to be made operational by 31.01.2019 as per order dated 11th Dec, 2018 by Ministry of Finance: http://www.cbic.gov.in/htdocs-cbec/gst/cgst-order-idx-2017
3) Shares in demat form: Sebi extends deadline to April 1 - https://timesofindia.indiatimes.com/business/india-business/shares-in-demat-form-sebi-extends-deadline-to-april-1/articleshow/66923013.cms
4) GST: Due date of GST Annual Return/Audit extended to 31st March, 2019 vide order no. 1/2018- Central Tax dated 11-12-2018
5) CBDT issues directions on filing of Appeal on merit on 7 Issues i.e Clarification w.r.t para 10 of Circular 3 of 2018 vide F. No . 279/Misc/M-93/2018-ITJ dt. 11-12- 2018.
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👉GST Authorities may soon come knocking at the premises of Companies that have registered for the GST and vanished, not having filed returns or paid their taxes.
👉CBIC to notify the Korean Won (WON) and Turkish Lira (TRY) in the list of Currencies for Exchange Rate, for the purpose of conversion of foreign exchange to Indian Rupees (INR) and vice versa for assessment of Imports & Exports.
👉CBIC detects GST evasion worth Rs 12,000 crore in 8 months till November 2018
👉SEBI will also soon come out with a Consultation Paper on Uniform Valuation Methodology for Pricing of Corporate Bonds. Fund houses will be required to follow this uniformly across all the mutual funds.
👉SEBI relaxes norms for Clubbing of Investment Limits by Foreign Portfolio Investors (FPIs). SEBI also approved use of Offer For Sale (OFS) Route for companies with M-Cap of Rs 1,000 Crore.
👉RBI slaps Rs 1 Crore Fine on Indian Bank for Violating Cyber Security Norms
👉India's Overall Exports including Merchandise and Services have increased a positive growth of 17.01% during April-September of 2018-19 as compared to the corresponding period of previous year
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👉🏻GST evasion worth Rs 12,000 crore detected between April-Nov
(We started anti-evasion measures from April onwards, and from April-November we have detected Rs 12,000 crore of GST evasion)
👇🏻 👇🏻 👇🏻
https://goo.gl/M6tDQD
👉🏻ICAI and IIM Ahmedabad sign MoU for training of Chartered Accountants
(The MoU is likely to benefit the Chartered Accountants in acquiring number of skills required in todays digitized and fast changing business environment.)
https://goo.gl/Lju9R8
👉🏻Multipurpose Empanelment Form (MEF) for Bank Audit for the Year 2018-19
(Final Bank Branch Auditors Panel of Chartered Accountants/Firms for the year 2018-19 has been hosted at www.meficai.org till 14-12-2018)
👇🏻 👇🏻 👇🏻
https://goo.gl/2Bmnnn
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# APPEAL to ICAI & CC Members: On 12.12.2018, I shared AAR, Maharashtra ruling in Lions Club of Poona Kothrud (2018 (12) TMI 590). A number of calls / messages recd from the Members, when the Fee collected from the Members of Lions Club is not ‘supply’, why can’t Membership Fee from ICAI Members be out of definition of SUPPLY. Need your immediate deliberation on the issue.
# MEF: Final Bank Branch Auditors Panel of Chartered Accountants /Firms for the Year 2018-19 has been hosted at www.meficai.org till 14 DEC 2018, thereafter the same will be sent to RBI.
# IT: 15 DEC 2018 is the DUE DATE for depositing 3rd instalment of Advance Tax for FY2018-19 (AY2019-20).
# GST: CBIC passes Removal of difficulty order for EXTENSION of DUE DATE for filing of Annual Return (in FORMs GSTR-9, GSTR-9A and GSTR-9C) for FY 2017-18 till 31 MARCH 2019 - Order No.1/2018- Central Tax, dt.11.12.2018.
# IT: MAT Credit admissible in terms of Section 115JAA has to be set off against the tax payable (assessed tax) before calculating interest under Sections 234A, 234B and 234C - CIT Vs Bannari Amman Spinning Mills Ltd. (2018 (12) TMI 603 - Madras High Court).
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Jharkhand High Court grants Bail to Accused of Rs. 30 Cr GST Evasion [Read Order]
Read more at: http://www.taxscan.in/jharkhand-high-court-bail-gst-evasion/31535/
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Tax Benefit not claimed in Return can be claimed during Assessment: ITAT directs AO re-consider Claim [Read Order]
Read more at: http://www.taxscan.in/tax-return-assessment-itat/31459/
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NCLAT : In Sudhi Sachdev vs. APPL Industries Ltd.
Pendency of the case under Section 138 / 441 of the Negotiable Instruments Act, 1881, even if accepted as recovery proceeding, it cannot be held to be a dispute pending before a court of law.
Read full case law at : https://dasgovernance.com/2018/12/13/nclat-in-sudhi-sachdev-vs-appl-industries-ltd/
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GST Advance Ruling System will take Time to Resolve: CBIC
Read more at: http://www.taxscan.in/gst-advance-ruling-system-will-take-time-to-resolve-cbic/31542/
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CSR Expenses Deductible from Total Income: ITAT [Read Order]
Read more at: http://www.taxscan.in/csr-expenditure-deductible-income-itat/31544/
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Enforcement Directorate files Complaint against Businessman in VAT Refund Scam
Read more at: http://www.taxscan.in/enforcement-directorate-vat-refund/31564/
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GST Evasion: Raid in 7 Lottery Centres, 11 Arrested
Read more at: http://www.taxscan.in/gst-arrest-raid-lottery-centres/31569/
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Government has announced the incorporation of companies with zero fees and with simple procedures.
Five procedures for starting a business are now integrated and can be done simultaneously. The ease of doing business policy of the government is in the form of these simple steps to form a company.
RUN ( Reserve Unique Name)
Reserving a company name is now an easy process. Earlier companies have to file INC-1 eForm. Time taken to apply for name reservation has been reduced considerably as the form for name reservation has been replaced with a simple web service. No need for a digital signature certificate for reservation of unique name.
Spice- ( Simplified Performa for Incorporating Company Electronically)
Five services has been incorporated in one eform. This is unique feature of spice . As the companies have to apply for DIN (Director Identification Number), Name reservation , Incorporation, Pan( Permanent Account Number), Tan(Tax deduction and collection account number) . All these can be applied with one single eform.
~DIN Not required prior to Filing Spice e-Form:
~DIN’s for directors of new companies through spice only.
*Speedy Incorporation Approvals*:
Central Registration Centre delivers Incorporation approval within 1 working day.
REFORMS:
1. Simplified procedure: The procedure for incorporation of companies have been simplified and this is the biggest reform for incorporation of new companies.
2. Zero Fees: Incorporation of new companies can be done with zero fees. This will provide an opportunity to new entrepreneurs to register themselves.
3. Reduced Time: Incorporation approval will be provided by the Central Registration Centre within one working day.
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Shareholderssical share certificates should convert it into dematerialized form by April 1, 2019 (earlier December 5, 2018):-
👉The shareholders who continue to hold shares and other types of securities of listed companies in physical form even after 01.04.2019, will not be able to lodge the shares with company / its RTA for further transfer.
Note: Only the requests for transmission and transposition of securities in physical form, will be accepted by the listed companies / their RTAs.
👉In this case, Shareholder will not be able to sell or transfer your shares after April 1, 2019. You will have to wait for demat of shares before being able to sell/transfer them.
👉Transmission and transposition of shares held in paper form will continue to be allowed. Transmission happens upon death of any or all shareholders. Transposition means change in ownership pattern; eg. From combination A & B (in this order) to B & A or from A & B & C to B & A & C. Though these will still be possible in paper form even after 31st March, 2019, conversion to demat is still suggested for many other benefits it offers.
👉 Hence, all the securities holder of shares of Listed Companies are required to dematerialized their physical shares before 01.04.2019. After 1st April 2019 share cant be transfer if shall be in physical mode.
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GST Evasion: Raid in 7 Lottery Centres, 11 Arrested
Read more at: http://www.taxscan.in/gst-arrest-raid-lottery-centres/31569/
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👉Banks may be closed for 5 days from 21 to 26 December as bank union has given a call for an all India bank strike against Indian Banks' Associations move to leave officers in Scale IV & above out of the Bipartite Wage Settlement Ambit.
👉CBDT issues directions on filing of Appeal on merit on 7 Issues & it’s been expressly provided that adverse judgments relating to the these issues should be contested on merits notwithstanding that the tax effect entailed is less than the monetary limits specified in Para 3 or there is no tax effect.
👉Delhi Govt. unearths an evasion of Rs. 262 crore of Cyber Tax. The evasion was committed by over 8,700 traders who were found showing fraudulent tax deposits into 13 banks since 2013.
👉CBIC conveys that the present advance ruling system will take some more time to resolve as there is no consensus between the union government and states over the uniform central body.
👉A SEBI investigation of the role of ratings agencies in the IL&FS crisis found them lacking and the regulator has now begun adjudicating proceedings against the agencies.
👉Standard Chartered Bank, which has significant retail operations in India, is downsizing across its retail banking division as more customers move online, thus the bank will let go of about 200 staff members.
👉ED files a complaint against a Ludhiana-based businessman, in the special court under the PMLA Act in Mohali as the department found that VAT refund worth Rs 74 lakh was all taken in lieu of fabricated exports.
👉Amazon's Indian arm signs an MoU with FISME to support sellers, under which the e-commerce major would provide the platform and logistics, while FISME would provide support in the area of policy and regulations.
