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INCOME TAX - AOs to issue SPECIFIC questionnaire alongwith initial notice u/s 143(2)

Respected Members,
In cases selected for scrutiny, the first notice u/s 143(2) issued by the AO shall now be accompanied by SPECIFIC questionnaire alongwith a notice u/s 142(1).
The CBDT has asked the AOs to issue case specific questionnaires to the assessee along with the initial notice u/s 143(2) to avoid wastage of time of the assessee and their authorized representatives who are required to attend the proceedings on issue of the initial notice u/s 143(2) but in absence of any specific questionnaire the compliance made by the assessee or the AR of the assessee cannot serve any purpose other than merely marking their presence on record.
Please find attached the relevant directions issued by the CBDT for your ready reference.
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N.K. Goel & Bros. Chartered Accountants
CA Yashu Goel
9899263490

www.TaxingNarad.COM

Fwd: Notice Dtd. 28.12.2015, Prohibiting carrying of cash beyond Rs.25,000/-

Respected Members,
Please find enclosed a Notice issued by the Department Trade and Taxes Delhi prohibiting visitors from carrying cash above Rs. 25,000/- While the members are advised to take precaution, the Bar executive is immediately moving a representation against this move of the Dept.
CA YASHU GOEL Vice-President Sales Tax Bar Association
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N.K. Goel & Bros. Chartered Accountants
CA Yashu Goel
9899263490

www.TaxingNarad.COM


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N.K. Goel & Bros. Chartered Accountants
CA Yashu Goel
9899263490

www.TaxingNarad.COM

Due date for filing Form9 Extended

CBDT prescribes procedure for verification of electronic and manual declarations of Form 15G/15H

CBDT Press Release Reg Claiming Of Medical Expenditure For Tax Purposes Made Easy

The CBDT has issued a press release dated 14.10.2015 stating that the condition of obtaining the certificate for claiming expenditure under section 80DDB in respect of specified ailments from a specialist working in a Government hospital has been amended. As per amended Rule 11DD, the prescription can be issued by any specialist mentioned in the amended Rule. Henceforth, it will not be mandatory to obtain a certificate from a specialist working in a Government hospital

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
PRESS RELEASE
New Delhi, 14th October, 2015Subject: Claiming of medical expenditure for tax purposes made easy.One of the pillars of the of the taxation proposals included in the Finance Minister's budget speech for 2015-16 was extension of benefits to the middle class. In this process the Finance Minister announced extension of certain benefits in respect of medical treatment under section 80DDB. This section allows a deduction fo…
Department of Trade & Taxes Delhi, has notified a scheme dated 08-10-2015 introducing an award scheme for the general public " Bill Banvao Inaam Pao"
The scheme would be for Bill/ Cash Memo /Retail Invoice of purchases made from  a registered dealer in Delhi.
Prize money is maximum Rs 50000
CA Yashu Goel
Santa: I have heard recently that Mr. Rajan has reduced Repo Rate by 50 basis points and everyone is saying that this is good for the market. Loan EMI may also come down. What is this rate cut means actually? I want to understand this. Banta: To understand this you first need to know, how does a bank function. Santa: Why? Banta: Because all these are inter-related. Tell me – what does a bank do? Santa: Bank takes money from depositors and gives loan to earn interest. That way they keep everyone happy and make a profit also. Banta: Correct, but there are more to it. Let me explain this in a very simplistic way. Bank needs money. Bank can get money from depositors like you and me and also from RBI. But bank also needs to pay certain interest to us and also to RBI. Santa: Ok. Banta: Let us try to understand first – what happens when we deposit, say, Rs. 100 with a bank. Santa: I know that. Bank gives that Rs. 100 to someone who needs a loan. Banta: No, it is not that simple. Remember, th…

I-T department to use email for issuing notices

The IT department has decided to launch a new system of issuing email notices to which an assessee can respond electronically, obviating the need for a physical interface with the taxman which often led to complaints about harassment. The Central Board of Direct Taxes, the apex policy-making body of the IT department, is working on a strategy to create the required processes and capacity in this regard. Explaining the procedure,CBDT Chairperson Anita Kapur said if a taxpayer provides the department with a bonafide email address in his Income Tax Return (ITR), the Board will be able to send him an e-notice and not a paper document dispatched through post for which he usually has to travel and meet the Assessing Officer (AO). "The taxpayer can respond through the email and if we have some more queries we give you another notice by the electronic medium so that both the AO and the taxpayer remain in an e-environment and, may be, during the final hearing when the AO want…

Company law update

MCA amends Companies Deposit Rules to exclude loans from relatives of directors by private company from definition of depositsImportant amendments applicable from 15th September 2015 includes:
• Loans from relatives of directors of a private company only
• Such money should not be out of borrowed funds
• Details of deposits from directors and their relatives to be given in Board Report
• All Limits under rule 3 for accepting deposits to include share premium

CBDT has issued a press release stating that no extension of due date for filing Tax Audit and I T Returns for the A.Y. 2015-16. CA Yashu Goel

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CA Yashu Goel
9899263490
yashu.goel@icai.org

Bogus sales and purchases: Reliance on statement of supplier who confesses to providing accommodation entries without giving assessee right of cross-examination violates principles of natural justice and the addition has to be deleted in toto

Bogus sales and purchases: Reliance on statement of supplier who confesses to providing accommodation entries without giving assessee right of cross-examination violates principles of natural justice and the addition has to be deleted in toto(i) The assessment was reopened on the basis of the statement of Shri Hiten L. Rawal, the proprietor of M/s Zalak Impex. In this statement recorded u/s 131 of the Act, Shri Rawal confessed to have provided accommodation entries in the form of sales and purchases, to various parties. The assessee was stated to have obtained bills for non-existing parties, amounting to Rs. 4,09,12,718, during the year under consideration. It remains undisputed that the assessee was never provided any opportunity to cross examine Shri Hiten L. Rawal, though he specifically asked for such cross examination. On the other hand, the burden was sought to be shifted on the assessee by the A.O., by asking him to produce Shri Rawal, even though it was the A.O. w…

S. 41(1)/ 68: Unclaimed liabilities to creditors, even if fictitious and bogus, cannot be assessed u/s 41(1) in the absence of a write-back. The bogus credits can be assessed u/s 68 only in the year the credits were made and not in the year they are found to be not payable

S. 41(1)/ 68: Unclaimed liabilities to creditors, even if fictitious and bogus, cannot be assessed u/s 41(1) in the absence of a write-back. The bogus credits can be assessed u/s 68 only in the year the credits were made and not in the year they are found to be not payableApplying the ratio in the cases mentioned supra, the amount in question cannot be brought to tax in the year under appeal under the provisions of Section 41(1) of the Act. It is trite law that an addition under Section 68 can be made only in the year in which credit was made to the account of the creditors in the books of account maintained. Admittedly, in this case the credit to the account of creditors was made in the earlier years and therefore, the amount even cannot be brought to tax under Section 68 in the year under appeal. However, it is open to the Department to levy tax on such amount by resorting to the remedies available under the provisions of Act by duly following the procedure known to the lawfor PDF c…

IT : Long-term capital loss of sale of equity shares attracting STT is allowed to be set off against long term capital gain on sale of land in accordance with section 70(3)

IT : Long-term capital loss of sale of equity shares attracting STT is allowed to be set off against long term capital gain on sale of land in accordance with section 70(3) • Section 10(38) excludes in expressed terms only the income arising from transfer of Long term capital asset being equity share or equity fund which is chargeable to STT and not entire source of income from capital gains arising from transfer of shares.• It does not lead to exclusion of computation of capital gain of Long term capital asset or Short term capital asset being shares.• Accordingly, Long term capital loss on sale of shares would be allowed to be set off against Long term capital gain on sale of land in accordance with section 70(3).■■■[2015] 58 taxmann.com 115 (Mumbai - Trib.) IN THE ITAT MUMBAI BENCH 'D' Raptakos Brett & Co. Ltd.v.Deputy Commissioner of Income-tax, MumbaiB.R. BASKARAN, ACCOUNTANT MEMBER
AND Amit Shukla, JUDICIAL MEMBER IT Appeal nos. 3317 (Mum,) of 2009 & 1…

Public notice

How to e-file return using EVC without sending signed copy of ITR-V?

How to e-file return using EVC without sending signed copy of ITR-V?

Taxpayers filing return of income electronically (without digital signatures) are required to send the signed copy of ITR-V acknowledgement to the CPC, Bengaluru within 120 days of uploading the return. From the Assessment Year 2015-16, an option is given to the taxpayer to file return of income via 'Electronic Verification Code' ('EVC'). In that case, taxpayers shall not be required to send the signed copy of ITR-V to CPC, Bengaluru.
The procedures and modes of filing of return through EVC has been notified by the CBDT. Thus, taxpayers can now file their return without worrying about sending copy of ITR-V acknowledgment to the CPC, Bengaluru. The new procedure is as under:
I. Verification of person via EVC
EVC means a code generated for the purpose of electronic verification of the person furnishing the return of income. EVC will be a unique number linked to assessee's PAN. It cannot be used …

Circular DVAT

TODAY

Madras High Court Directs that Seats be Provided to Accused During Trial

Madras High Court while dealing with issue that why should people accused in criminal cases not be allowed to sit in court halls during trial has directed the court's registrar-general to look into the same and make available seating facilities for accused in the criminal and trial courts.Gujarat HC Issues Notice to Government for Arresting Businessman Without Requisite Magisterial

Gujarat High Court has issued notice on the state government for allegedly arresting a businessman in Shillong for some non-cognizable offences without the requisite magisterial order.Madras High Court: Right to Protest is Not the Right to Cause Nuisance to Public

Madras High Court has observed that the right to protest is not the right to cause nuisance or harassment to the public at large.Bombay HC Says no to Noisy Religious Festivities
Bombay High Court while hearing a public interest litigation (PIL) on noise pollution …

S. 143(3)153A Addition made solely on the basis of a disclosure and without any incriminating material is not sustainable if facts show that disclosure was under duress

Pursuant to a search and seizure operation u/s 132, the assessee made a disclosure of unaccounted income of Rs. 20 crore. He later claimed that the disclosure was not voluntary but was because the assessee was under tremendous pressure and harassment in the form of repeated search action, survey and freezing of assets. It was also claimed that no incriminating material was found during the search. It was also claimed that the disclosure was "pro tem", meaning tentative and subject to correction. The AO & CIT(A) rejected the claim. On appeal by the assessee to the Tribunal HELD allowing the appeal:(i)Whether the disclosure was voluntary or given under coercive circumstances. Conclusion: The contentions raised by ld. Counsel for the assessee lead to a clear inference that the disclosure of the assessee cannot be regarded as voluntary. The pressure of restrained DDs. of 31.48 crs. against a disclosure tax liability of about 7 crs is palpable. It has the propensi…

Levy of late fee on late filing of TDS return

Amendment in section 200A by Finance Bill 2015 w.e.f. 01-06-2015.
Till 31-5-2015 Income tax department has no power to process TDS return U/s 200A to levy TDS late fee U/s 234E But w.e.f. 1-6-2015 as per Sec. 200A income tax department can levy late fee U/s 234E @ Rs. 200/- per day on delayed filing of TDS return. Therefore if any late fee is levied before 1-6-2015 appeal can be filed for this or rectification application U/s 154 can be filed to get it cancelled. Even if due to mistake any late fee U/s 234E is paid then refund will be granted of such excess late fee.ITAT Amritsar has given a decision on this subject. Before going to the decision, first we are reproducing the  amendment in section 200A wef 01.06.2015 .
In section 200A of the Income-tax Act, in sub-section (1), for clauses (c) to (e), the following clauses shall be substituted with effect from the 1st day of June, 2015, namely:— 
"(c) the fee, if any, shall be computed in accordance with the provisions of section 234E…