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.

Pursuant to the judgement of the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273, the CBDT has issued Instruction No. 12/2013 (F. NO. 312/55/2013-OT) dated 09.09.2013 stating that no refund should be adjusted without following the procedure prescribed in s. 245 of the Act of intimating the assessee of the proposed adjustment and considering his objections thereto

Pursuant to the Companies Act 2013 which was enacted on 29.08.2013, the Ministry of Corporate Affairs has released the Draft Companies Rules 2013

The Companies Act, 2013, which received the assent of the President on the 29th August, 2013, is available for download Taxmann Companies Act 2013

Pursuant to the judgement of the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273, the CBDT has issued Instruction No. 11 of 2013 dated 27.08.2013 stating that where the report by the deductor in the TDS statement are not found available in the OLTAS database resulting in TDS mismatch, the CPC(TDS)/ AOs(TDS) shall immediately issue letters to the deductors, in whose case TDS challans are unmatched, with a view to verify and correct these challans. If necessary, the deductors may be asked to file correction statements, as per the procedure laid down and necessary follow up action be taken. It has been directed that the task should be completed by 31st December 2013 for FY 2012-13 in the case of CPC (TDS) and FYs 2011-12 & earlier in case of AOs (TDS)

Further to Order No. 1/FT & TR/2013 dated 13.08.2013, the CBDT has issued Order No. 2/FT & TR/2013 dated 27.08.2013 regarding the Constitution of the Dispute Resolution Panel in Delhi, Mumbai, Ahmedabad, Pune, Kolkota, Bangalore, Hyderabad and Chennai with effect from 19.08.2013

The Voluntary Compliance Encouragement Scheme, 2013 (VCES) has given rise to a number of practical problems. Though the CBEC has issued a clarificatory Circular No. 170/5 /2013 – ST dated 08.08.2013 and also a FAQ, several aspects of the Scheme are still not clear. The author, using his immense practical experience in the subject, has provide clear cut answers to a number of questions raised by tax professionals and tax payers

Vide Order No. 1/FT & TR/2013 dated 13.08.2013, the CBDT has directed a change in the Constitution of the Dispute Resolution Panel in Delhi, Mumbai, Ahmedabad, Pune, Kolkota, Bangalore, Hyderabad and Chennai with effect from 19.08.2013

The Rangachary Committee was set up in July 2012 to “Review Taxation of Development Centres and the IT Sector” and to “finalise the Safe Harbour Transfer Pricing provisions”. The first report on Taxation of Development Centers and the lT Sector was released in July 2013. The second report on the “Transfer Pricing Safe Harbour” recommendations has been released now