Updates

Income Tax Updates1.TDS default doesn't invite sec. 40(a)(ia) disallowance if total income of deductor is exempt

2. High Court unhappy with CBDT for refusing to condone delay of one day in filing return

3. Cultivation of agricultural land by assessee himself isn't necessary to claim sec. 54B relief

Service tax Updates
4. CBEC - Service Tax 

5. Tax Payer Service Vertical to address tax payers' grievances

Point Of Discussion
6. Tax free gift

Professional Updates
Bad News for our profession
7. IBA allow members of ICMA as Stock Auditor
please send a mail to PDC ICAI , President ICAI and VP ICAI to raise voice.
In Detailed :-

1.TDS default doesn't invite sec. 40(a)(ia) disallowance if total income of deductor is exempt

IT : Where assessee's total income is exempt under section 10(26), for assessee's lapse of not complying with his tax withholding obligations, there cannot be any occasion to invoke section 40(a)(ia) to treat relevant amount disallowable as an income of assessee on standalone basis

• Disallowance under section 40(a)(ia) does make good of lapses in deduction of tax at source, when such tax deductions are due; this provision is not for purpose of penalizing assessee for failure to deduct tax at source

 [2015] 60 taxmann.com 360 (Guwahati - Trib.)

IN THE ITAT GUWAHATI BENCH

Tamchikusuk v. Additional Commissioner of Income-tax, Range, Tezpur, Assam

2. High Court unhappy with CBDT for refusing to condone delay of one day in filing return

IT: Refusal by CBDT to condone one day delay in filing of return of income is a failure to exercise of power vested under section 119(2)(b)

 [2015] 60 taxmann.com 233 (Bombay)

HIGH COURT OF BOMBAY

Cosme Matias Menezes (P.) Ltd. v. Commissioner of Income-tax, Goa*

Section 139, read with sections 119 and 239, of the Income-tax Act, 1961 - Return of income (Condonation of delay in filing return) - Assessment year 2006-07 - Petitioner assessee filed its return of income one day late and refund claimed was not granted by department - Assessee filed an application under section 119(2) with CBDT to condone delay but same was dismissed - Whether approach adopted by CBDT in refusing to condone delay was a pedantic resulting great hardship to petitioner assessee - Held, yes [Paras 9 and 11] [In favour of assessee]

3. Cultivation of agricultural land by assessee himself isn't necessary to claim sec. 54B relief

IT : Once it is established that land owned by assessee has been used for agricultural purpose, he becomes entitled for claim under section 54B on sale of land even if he is not a cultivator himself but gets it cultivated under his supervision

IT : An assessee is entitled to benefit of exemption under section 54B with regard to 'on money' declared in course of search but not reflected in sale register

 [2015] 60 taxmann.com 219 (Ahmedabad - Trib.)

IN THE ITAT AHMEDABAD BENCH 'B'

Shree Bhagwanbhai Revabhai Prajapati v. Assistant Commissioner of Income-tax, Central Circle 1 (4) *

4. CBEC - Service Tax 

CBEC has issued Clarification regarding the provision of Section 73, 76 and 78 of the Finance Act, 1994 and Section 11AC of the Central Excise Act, 1944 after amendments made vide Finance Act. 2015 made with effect from 14.05.2015. An attempt has been made to clarify the doubts on Issuance of a Show Cause Notice (SCN), whether the SCN have to be issued in a case involving the extended period of limitation, where the assessee pays the tax/duty, interest and 15% penalty as prescribed or not and doubts w.r.t the Conclusion of proceedings and who is competent to order conclusion of proceedings if the conditions meriting conclusion of proceedings are fulfilled.

  

5. Tax Payer Service Vertical to address tax payers' grievancesThe government is set to unveil taxpayer service verticals for the indirect tax to deal with grievances and also work out ways to make the system more consumer-friendly and address constant complaints. 

Today (Monday, 24^th Aug 15) the Central Board of Excise and Customs (CBEC) is expected to announce its taxpayer services vertical, headed by a director general, along with two other verticals, at a meeting of chief commissioners that will be also be attended by finance minister.

"The entity will deal with grievances and make sure that services offered to taxpayers, both individuals and companies, improve," said an officer. 

6. Point Of DiscussionTax free gift :- Can I receive any sum of money or immovable property as gift from other than relative and need not pay tax on it ?

Yes, you can receive ANY SUM OF MONEY OR IMMOVABLE PROPERTY (without consideration or at consideration which is less than stamp duty value) as gift from anyone (from other than relative also) in the some cases/occasions, out of which three common occasions are as below :-

(1). On the occassion of marriage of the individual, (i.e. gift can be of any sum of money or immovable property)

(2). under a will 

(3). In contemplation of death of the payer or donor ( if any person even if not a relative, is about to die or suffering from incurable disease can make gift of movable property, it will not be taxable in hands of donee, Income tax act doesn't restrict gift of immovable property in such cases but Indian Succession Act defines that gift should be of movable property only, in contemplation of death ).