Vide Notification No. F. 71-Ad(AT)/2012, dated 7-2-2012 certain important amendments have been incorporated to the Income Tax (Appellate Tribunal) Rules, 1963. Some of the amendments are to give effect to the judgement of the Bombay High Court in Jagjivandas Nandlal vs. ITAT 236 CTR 274 as incorporated in the Practice Note dated 22.2.2011 issued by the Registrar of the Tribunal.

It may be recalled that the Bar Association had called for suggestions on the amendments vide letter dated 1.11.2011.

In exercise of the powers conferred by sub-section (5) of section 255 of the Income Tax Act, 1961, the Appellate Tribunal hereby makes the following rules further to amend the Income Tax (Appellate Tribunal) Rules, 1963, namely :-

In DCIT vs. Shreyas S. Morakhia 40 SOT 432 the ITAT Mumbai Special Bench held that a broker was eligible to claim a deduction of the entire amount due to him from his client as a “bad debt” even though only the brokerage (and not the entire amount) had been offered as income. This judgement has been affirmed by the Bombay High Court today, 28.02.2012.

In February 2012, the Institute of Chartered Accountants of India (ICAI) has issued three important Guidance Notes that have considerable relevance for income-tax practitioners. For the importance of such Guidance Notes in income-tax matters see CIT vs. Virtual Soft Systems Ltd (Delhi High Court)

NOTIFICATION NO 9/2012, Dated: February 17, 2012

In exercise of the power conferred by sub-section (IC) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2012-13, namely:-

1. Class of persons.- An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,-

(A) “Salaries”;

(B) “Income from other sources”, by way of interest from a saving account in a bank, not exceeding ten thousand rupees.

2. Conditions,- The individual referred to in para 1,-

i) has reported to his employer his permanent Account Number (PAN);

ii) has reported to his employer, the incomes mentioned in sub-para (B) of para I and the employer has deducted the tax thereon;

iii) has received a certificate to of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;

iv) has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;

v) has no claim of refund of taxes due to him for the income of the assessment year, and

vi) has received salary from only one employer for the assessment year.

3. The exemption from the requirement of furnishing a return of income tax shall not be available where a notice under section 142 (1) or section 148 or section 153A or section 153C of the incometax Act has been issued for filing a return of income for the relevant assessment year.

4. This notification shall come into force from the date its publication in the Official Gazette.

F.No.225/283/2011-ITA (II)

(Ajay Goyal)
Director (ITA-II)

Vide Order No. 34 of 2012 dated 16.02.2012 the CBDT has promoted officers in the grade of Additional Commissioner/Additional Director of Income-tax to the grade of Commissioner of Income-tax (CIT) with immediate effect and actually from the date of assumption of charge of the post and until further orders

Vide Order No. 33 of 2012 dated 16.02.2012 the CBDT has promoted officers in the grade of Commissioner/Director of Income Tax to the grade of Chief Commissioner of income-tax with immediate effect and actually from charge of the post and until further orders.

CENTRAL VIGILANCE COMMISSION
Satarkta Bhawan, GPO Complex
Block A, INA, New Delhi 110023
Office Order No. 4/02/12
Dated: 13th February 2012

Sub: GoI Resolution on the Public Interest Disclosure & Protection of Informers (PIDPI) – Guidelines thereon.

The Government of India has authorized the Central Vigilance Commission (CVC) as the Designated Agency to receive written complaints for disclosure on any allegation of corruption or misuse of office and recommend appropriate action under the Public Interest Disclosure & Protection of Informers (PIDPI) Resolution, 2004. Accordingly, Commission had also vide circular No.33/5/2004 dated 17/05/2004 issued guidelines and public notice on the procedure to be followed for filing whistle blower complaints under PIDPI Resolution for protecting identity of complainants/informers.

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Text of letter dated 7.2.2012 addressed by Shri. Laxman Das, Chairman, CBDT, to the income-tax department

Laxman Das, Chairman,
Central Board of Direct Taxes,
Department of Revenue,
Ministry of Finance,
North Block,
New Delhi 110001
Dated: 7th February 2012

 

My Dear Chief Commissioners/ Director Generals of lncome Tax (Inv.) and Commissioners/ Directors (International Taxation).

 

I have taken over as Chairman at a time when Revenue Collections seem to be far away from the budget target with less then two months at hand.

 

At this critical juncture, our task as revenue administrators becomes that much more challenging. As senior officers, we have to play a critical role in making all possible efforts to improve the situation. We have to ensure that every Chief Commissioner/ Director General of Income Tax (Inv.) / Commissioner /Director (International Taxation) achieves the budget
target.

 

In this context, all Chief Commissioners (CCA) may please tabulate data in respect of their regions (in the format enclosed) consisting of CCsIT/ DGsIT and CsIT wise revenue collection figures up to 31st Jan, 2012 as against the budget target to be achieved by 31st March, 2012. This data should reach me by 15th February, 2012 by e-mail at the following email id: anuja.cbdt (at) gmail.com

 

Among the parameters of performance in your area, achievement of revenue collection target will obviously be given the highest weightage while writing your APAR by reporting officers and reviewing officers and will also be a major factor while considering placements during AGT 2012.

 

I trust that each of you understands that achieving the budget target is non-negotiable.

 

On my part. I assure you of my absolute support in this regard.

 

I am sure that with your support we will be able to meet our targets.

 

With best wishes.

 

Laxman Das

INSTRUCTION NO. 01/2012 [F.NO.225/34/2011-ITA.II], DATED 2-2-2012

The issue of processing of returns for the Asst. Year 2011-12 and giving credit for TDS has been considered by the Board. In order to clear backlog of returns, the following decisions have been taken:

(i) In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. One lac, the TDS claim may be accepted without verification.

(ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification. However, in case of returns of ITR-1 and ITR-2, credit may be allowed in full, even if there is zero matching, if the total TDS claimed is Rs. Five thousand or lower.

(iii) Where there are TDS claims with invalid TAN, TDS credit for such claims are not to be allowed.

(iv) In all other cases, TDS credit shall be allowed after due verification.