Further to the Order dated 26.09.2013 issued u/s 119(2)(a) of the Act extending the due date for the electronic filing of the Tax Audit Report to 31.10.2013, the CBDT has issued a Press Release dated 26.09.2013 clarifying that the print copy of the Tax Audit Report as well as the Return of Income has to be filed by the prescribed due date of 30.09.2013 and that there is no extension of that time limit

The CBDT has issued an order u/s 119(2)(a) of the Act extending the due date for the electronic filing of the Tax Audit Report to 31.10.2013. However, a print copy of the Tax Audit Report is required to be furnished manually to the jurisdictional Assessing Officer within the prescribed due date of 30.09.2013.

The handbook contains a series of articles by well known tax experts. For instance, Philip Baker, the acclaimed authority on international taxation, has written a detailed article on “Improper use of tax treaties, tax avoidance and tax evasion” in which he has dealt with the theoretical and practical aspects of treaty shopping and provided authoritative guidance. Similarly, other experts like Ariane Pickering and Peter A. Harris have written articles on important and topical issues like “Taxation of non-resident service providers” and “Taxation of residents on foreign source income” etc

The CBDT has issued Instruction No. 14/2013 dated 23.09.2013 by which it has created a “Standard Operating Procedure for cases under Non-filers Monitoring System”. The Instruction points out that the existing procedure for monitoring cases of ‘Non-Filers of IT Returns’ as identified by Director General of Income Tax (System) results in Non-Filers not being uniformly monitored by the Assessing Officers due to lack of consistency in approach in dealing with such cases. In order to streamline the processing Of such cases and to ensure consistency in monitoring NMS cases by the Assessing Officers, the Board has laid down a detailed Standard Operating Procedure.

The CBDT has issued a letter dated 20.09.2013 to the Chief Commissioners of Income-tax pointing out that despite earlier instructions to pay over the refunds due for FY 2011-12 the progress so far has been tardy. The CCsIT have been directed to take necessary action and direct the Assessing Officers to issue the refunds for AY 2011-12 without further delay. The CCsIT have also been directed to personally monitor the progress in the above respect and send a report on the matter by 15.10.2013 with reasons for non-issue of refunds, if any.

The CBDT has issued Instruction No. 13 of 2013 dated 20.09.2013 by which it has modified the norms for compulsory manual selection of cases for scrutiny in FY 2013-14 as specified in Instruction No. 10 of 2013 dated 05.08.2013. The scrutiny norms have been made public pursuant to the directions of the Delhi High Court in Joginder Pal Gulati vs. OSD – CPIO

The Ministry of Finance has issued Notification dated 18.09.2013 and inserted “Safe Harbour Rules” by way of Rules 10TA to Rule 10TG in the Income-tax Rules, 1962. The Rules have been framed based on the recommendations of the Rangachary Committee. The salient terms of the Safe Harbour Rules are explained in this press release

The Ministry of Finance has issued a press release stating that the Safe Harbour Rules have been finalized after considering the comments of various stake holders. The significant aspect is that in case of transactions in the nature of routine ITES and ITS activities the earlier ceiling of Rs 100 crore has been removed. Transactions upto Rs. 500 crore have been provided safe harbour margin of 20% and transaction above Rs.500 crore have been provided safe harbour margin of 22%. Similarly, the ceiling of Rs. 100 crore provided for transactions in the nature of corporate guarantee has been removed. Also, the rules provide for a time bound procedure for determination of the eligibility of the assessee and the international transactions. Any rejection of the option exercised by the assessee shall be by way of a reasoned order passed after hearing the assessee. The assessee shall have a right to file an objection with the Commissioner against adverse finding regarding the eligibility. The Commissioner shall thereafter decide about the validity of the option exercised by the assessee

The Parliamentary Public Accounts Committee has released a report on “Tax Administration” in which several far-reaching observations have been made regarding the functioning of the Income-tax department. One of the issues that irked the Committee was the tendency amongst the Assessing Officers of passing “adventurous” assessment orders. It noted that the arbitrary additions made in such “adventurous” orders were causing undue harassment to the taxpayers and had led to high levels of dis-satisfaction. It recorded the solemn statement of the Revenue Secretary that a system would be implemented which would provide disincentives against such orders. The department assured the Committee that it would henceforth inculcate in the Assessing Officers an attitude of passing “fair and judicious” assessment orders.