Hon’ble Sushil Chandra, who has been recently appointed as the Chairman of the CBDT, has got off to a flying start. He has issued a detailed communiqué to the Income-tax department in which he has set out the road map that has to be followed over the next six months

The CBDT has vide Order No. 181 of 2016 dated 22.10.2016 ordered the postings and transfers of several officers in the grade of Commissioner of Income-tax with immediate effect and until further orders

The CBDT has issued an order u/s 119 of the Income-tax Act dated 25.10.2016 stating that in instances where a valid return-of-income having ‘claim of refund’ for AYs 2014-2015, 2013-2014 and 2012-2013 was filed either under section 139 or 142(1) of the Act and in which the time for sending intimation under sub-section (1) of section 143 has lapsed, the time-frame prescribed in second proviso to sub-section (1) of section 143 is required to be processed by 31.03.2017. Further, intimation of processing and consequential refund, if any, is required to be issued expeditiously as per the prevailing norms and existing provisions of the Act

The CBDT has issued a letter dated 26.10.2016 in which it has drawn attention to its Circular No 3/2015 dated 12.2.2015. In the said Circular it was clarified that for the purpose of making disallowance of “other sums chargeable” under Section 40(a)(i) of the Income-tax Act, 1961, in the case of non-residents, the appropriate portion of the sum chargeable to tax under the Act, i.e. income component therein shall form the basis of such disallowance. The CBDT has noted that this Circular is not being kept in view by administrative Commissioners & Commissioners (Appeal) while filing further appeals and while deciding cases. Further, the Circular is not kept in view by departmental representatives in ongoing litigation cases, who still take a position that the disallowance should be based on the gross amount of offshore payments such as purchases. The CBDT has directed the departmental officers including representatives of the department in litigation before ITAT/Courts etc. to be sensitized to the content of this circular

The CBDT has issued Circular No. 35 /2016 dated 13.10.2016 in which it has clarified that lump sum lease premium or one-time upfront lease charges, which are not adjustable against periodic rent, paid or payable for acquisition of long-term leasehold rights over land or any other property are not payments in the nature of rent within the meaning of section 194-1 of the Therefore, such payments are not liable for TDS under section 194-I of the Act

The CBDT has issued Instruction No. 3 dated 16.09.2016 in which it has set out the procedure to adopted by Assessing Officers for generation of notices under section 143(2) of the Income-tax Act, 1961 in cases which are selected for limited and full scrutiny under the Computer Assisted Scrutiny Selection (CASS)

The CBDT has issued Instruction No. 8 of 2016 dated 15th September 2016 in which it has clarified as to whether a declaration under The Income Declaration Scheme, 2016 can be filed for an assessment year for which the proceedings under section142(1)/143(2)/148/153A/153C were pending as on 31.05.2016 but the said proceedings have been completed