CORPORATE AND PROFESSIONAL UPDATE JANUARY 02, 2016

CORPORATE AND PROFESSIONAL UPDATE JANUARY 02, 2016

1. DGFT Hand book of procedures of FTP 2015-20 permits re-fixation of Annual Average Export obligation, in case the export in any sector/ product group decline by more than 5%.
2. AOP or BOI included in the definition of person. Punjab and Haryana High Court has held that inclusion is not unconstitutional. [Jaswant Singh Mann vs. Union of India.
3. The Ministry of Law and Justice has notified the amended The Negotiable Instruments (Amendment) Act, 2015 which shall be deemed to have come into force on the 15.06.2015.
4. Commissioner Delhi VAT has agreed to extend the date of filing of DP-1 up to 31.01.2016. Notification awaited. TEAM STBA
5. Excise dues payable by old company cannot be recovered from assessee when assessee purchased only assets of old company.
6. MCA extends deadline to file Annual Return and Financial Statements for the State of Tamil Nadu and UT of Puducherry.
7. E-filing of appeal before CIT (Appeals) made mandatory for taxpayers who are required to file the return of income electronically. CBDT press release dated 30.12.2015.
8. Exemption u/s 10A available on undisclosed income surrendered during survey proceeding u/s 133A. [Bridal Jewellery Manufacturing companies..vs. ITO (ITAT Delhi)].
9. Service Tax Refund allowable where service tax is paid twice by appellant due to clerical error. [Tikaula Sugar Mills Ltd. vs. CCE, Meerut-I].
10. Filing of appeal before CIT (A) being digitized by CBDT. Form 35 being replaced with new digitized form. Documents relied upon before CIT (A) shall also be covered. Fixation of hearing of appeals shall also be electronically. Press release dated 30-12-2015.
11. Interest on FDRs in name of registrar general of court or the depositor on direction of court will not subject to TDS till matter decided by court. CBDT Cir. 23/2015.
12. Amendment of Rules regarding quoting of PAN of specified Transactions with effect from  01.01.2016 to curbing the circulation of black money and widening of tax base.
13. Section 14A disallowance only for expenses not directly relatable to exempt or taxable Income. [CIT vs. Bharti Overseas Pvt. Ltd. (Delhi High Court)].
14. Relaxation of additional fees and extension of last date of fling of forms MGT-7 and AOC-4 under the Companies Act, 2013 State of Tamil Nadu and UT of Pondicherry up to 30.01.2016.  Circular No. 16/2015 dated. 30.12.2015.

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1. Delhi VAT department clarification on registration of e-commerce dealers, Circular No. 33 OF 2015-2016.
2. In case of share capital identity, genuineness and creditworthiness of the cash creditor is to be proved by assessee. [DCIT vs. M/s. Soni Hospital Pvt. Ltd. Jaipur bench of ITAT].
3. Inputs / Capital goods used in R&D and Quality Control Laboratory for input testing, final product samples eligible for cenvat credit.[Subic Innovative Plastics (P.) Ltd.].
4. In absence of any specific provision in statute, duty/penalty liability of company cannot be recovered from assets of its director.[Spectec Building Products Pvt. Ltd.].
5. CBDT has issued Notification dated 30/12/2015, amending Rules 114B, 114C, 114D, 114E. w.e.f.01/04/2016, all assesses  (liable for tax audit u/s 44AB), will have to file AIR in Form 61A, in case cash payment exceeding Rs. 2 lacs for sale of goods/services.
6. Addition made on account of third party evidence without establishing identity of assessee not valid.[Prabhat Chandra S Jain vs. ACIT: Pune bench of ITAT]
7. The CBDT, as per Instruction No. 20/2015 has notified the procedure for handling ‘Limited Scrutiny’ cases:
   • Reasons for ‘Limited Scrutiny’ shall be forthwith communicated to assessee concerned.
   • Questionnaire shall remain confined to only specific reasons / issues.
   • Cases should be completed expeditiously in limited number of hearings
   • If there is a reason to believe that there is escapement of income exceeding upto 10 lakhs – then case may be converted to Manual Scrutiny with prior approval of CIT / P. CIT.
8. No TDS liabilities of banks if FD is made on directions of Court during pendency of proceedings vide circular no. 23/2015.
9. Department Trade and Taxes Delhi has issued Notice for prohibiting visitors from carrying cash above Rs. 25,000/-.
10. CBEC has issued an instruction dated 18.12.2015 vide F No. 390/MISC/67/2014-JC, to withdraw cases pending in High Court/CESTAT, where Supreme Court has decided on an identical matter and the decision has been accepted by the Department.

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