Saturday, October 3, 2015

Income Tax NOTIFICATIONS and COURT DECISIONS (Sept 2015)


NOTIFICATIONS

NOTIFICATION OF PRESS TRUST OF INDIA AS NEWS AGENCY FOR SECTION 10(22B) OF THE INCOME TAX ACT, 1961
The  CBDT,  Dept  of  Revenue  (Ministry  of  Finance)  vide Notification No. 72/2015 dated 24th August, 2015 has notified Press Trust of India Limited, New Delhi as a news agency set up in India solely for collection and distribution of news, for the purpose of Sec 10(22B) of the Act for 3 assessment years 2016-17to 2018-19, subject to the condition that such news agency applies its income or accumulates it for application solely for collection and distribution of news and does not distribute its income in any manner to its members.

PROCEDURE FOR REGISTRATION & SUBMISSION OF REPORT U/S 285BA(1)(K) OF THE INCOME TAX ACT, 1961
The Directorate of Income Tax (Systems), CBDT, Ministry Of Finance vide Notification No 3/2015 dated 25th August, 2015 has laid down the procedures, data structure and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies as under:

a)  Registration of the reporting financial institution: 
The  reporting  financial  institution  is  required  to  get registered with the department by logging in to the e-filing website with the login id used to file the institutions Income Tax Return. Under MY Account , a link to register reporting financial institution has been provided. The reporting financial institution is to submit registration details on the screen & it may submit different registration information under respective categories.

b)  Submission of Form-61B: 
After successful registration, the reporting financial institution shall submit Form-6 B or NIL statement under e-file menu. The prescribed schema for the report under Form 61B can be downloaded from the e-filing website. The calendar year for which report is to be submitted & the relevant reporting entity category are to be submitted. Then, the reporting financial institution will be provided with the option to upload Form 61B & it is to be submitted using Digital Signature Certificate (DSC).

c)  Submission of Nil statement:
To submit NIL statement, the option to submit NIL statement is to be selected & then, the reporting financial institution has to submit a declaration of pre-existing accounts (as per Rule 114H(2)(h) of Income Tax Rules, 1962) & new accounts (As perRule 114H(2)(d) of Income Tax Rules, 1962) using a DSC.

d)  Digital Signature Certificate(DSC):

In case the designated dealer (as reported in registration details submitted by the reporting financial institution as per para 2(a) above) is same as the person authorized to verify the return of income of the reporting financial institution as per Sec 140 of the Act, Form-61B or NIL statement is to be submitted with DSC of the person authorized to sign such return of income. In other cases, the procedure shall be notified separately.

COURT DECISIONS

TRIYOGI NARAYAN SINGH VS CIT, KOLKATA-X, KOLKATA [CALCUTTA HIGH COURT]

Brief: If Assessing Officer exercises powers u/s 144, & submits that it was as per sec 143(3) & wrongly recorded u/s 144, such submission is not acceptable. Further, if such officer wishes to make assessment u/s 144, for he being a creature of the statute, can only exercise power either according to the statute or not at all.

OUR COMMENTS: In the above case, the Ho le Cal utta High Court held that it appeared from the order of the Assessing Officer (AO) that the AO had first exercised his power u/s 145 & thereafter, had exercised power u/s 144. Thus, the submission by revenue that the assessment was made u/s 143(3) & mistakenly recorded to have passed the same u/s 144 is not acceptable. Best judgment Assessment i.e. assessment u/s 144 is to be made by the AO after considering all relevant materials obtained after giving opportunity to the assessee, but the AO did not make the assessment based on materials. Instead, he assessed on item wise expenditure where some were allowed & some were disallowed. The submission by revenue that in assessment u/s 144, AO can make disallowances, would have been correct in the backdrop that assessee may raise contentions disputing materials collected by AO. The AO exercised power u/s 145 as books of accounts were not believable for they were neither correct nor complete. If, in such a case the AO wishes to make assessment u/s 144, he has to do that only as per provisions u/s 144. The AO being a creature of the statute can only exercise power either according to the statute or not at all (ref-Bhavnagar University v. Palitana Sugar Mill (P) Ltd. reported in 2003(2)SCC  111).  Hence,  for  the  above  reasons    the impugned order & CIT s order are all set aside &   matter was remanded back to the AO to make assessment only as per Sec 144. The appeal is disposed.[Decided in favour of Assessee]

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