TIOL-DDT 1770 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1770 </font><br> 09.01.2012 <br> Monday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Deduction for Developing and building a housing project </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per Section 35AD of the Income Tax Act, “<em>an assessee shall be allowed a deduction in respect of the whole of any expenditure of capital nature incurred, wholly and exclusively, for the purpose of any <strong>specified business</strong> carried on by him during the previous year in which such expenditure is incurred by him:</em>” </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per sub-clause (vii) of clause (c) of sub-section (8) of section 35AD of the income Tax Act, inserted with effect from 01.04.2012, by the Finance Act, 2011, <strong>specified business</strong> means, </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">"Developing and building a housing project under a scheme for affordable housing framed by the Central Government or a State Government, as the case may be, and <strong>notified by the Board </strong>in this behalf in accordance with <strong>the guidelines as may be prescribed;</strong>"</font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Therefore, the Board is required to notify the scheme and prescribe the guidelines. Board has now prescribed the guidelines: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A project shall be considered for notification if it fulfils all of the following conditions, namely:-</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the project shall have prior sanction of the competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) the date of commencement of operations of the project shall be on or after the 1st day of April 2011; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) the project shall be on a plot of land which has a minimum area of one acre; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) at least thirty per cent, of the total allocable rentable area of the project shall comprise of affordable housing units of EWS category; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) at least sixty per cent of the total allocable rentable area of the project shall comprise of affordable housing units of EWS and LIG categories; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) at least ninety per cent of the total allocable rentable area of the project shall comprise of affordable housing units of EWS, LIG and MIG categories; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) the remaining ten per cent or less of the total allocable rentable area of the project may comprise of other residential or commercial units; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) the layout and specifications including design of the project to be developed and built shall be approved by the State or Union territory Government or its designated implementing agency; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) the project shall be completed within a period of five years from the end of the financial year in which the project is sanctioned by the competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India. </font></p> </blockquote> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2012/it12not001.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No. 1/2012 Dated: January 02, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Centralised Processing of Returns Scheme, 2011 - Notified </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> has notified the Centralised Processing of Returns Scheme, 2011. The notification is dated 4th January 2012; then shouldn't the scheme be called Centralised Processing of Returns Scheme, 2012 and not 2011? </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Receipt and Acknowledgement of Return of Income: </font></strong></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Where a return of income is filed electronically with digital signature, on successful transmission of the data, an acknowledgement as generated by the server of the Central Government shall be available to the person in printable format. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The acknowledgement shall contain the acknowledgement number of the electronic transmission and the date of transmission as an evidence of filing of the return. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ A copy of the electronic transmission of filing the return of income shall be downloaded and kept by the person. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Where a return of income is filed electronically without digital signature, on successful transmission of the data, an acknowledgement in Form ITR-V as provided in rule 12 of the Income Tax Rules, 1962 shall be generated by the server of the Central Government and available to the person. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Form ITR-V shall also contain the acknowledgement: number of the electronic transmission and the date of transmission as an evidence of filing of the return. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ A copy of ITR-V shall be downloaded and after taking a printout of such a form, it shall be physically verified under the signature of the person and forwarded to the Centre. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Form ITR-V duly verified shall be sent to the Centre, either through ordinary or speed post, within such period of uploading the electronically filed return as may be specified by the Director General in this behalf. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The date of transmitting the data electronically shall be the date of furnishing the return if the Form ITR-V is furnished in the prescribed manner and within the period specified. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ In case Form ITR-V furnished after the prescribed time is rejected on account of it being unsigned, illegible, mutilated, bad quality or not as per specification, it shall be deemed that the return in respect of which the Form ITR-V has been filed was never furnished and it shall be incumbent on the person to electronically file the return of income again followed by submission of the new Form ITR-V. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Form ITR-V shall be submitted at the address, in the mode and within the period or extended period specified by the Commissioner in this behalf. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Commissioner may, in order to avoid hardship in a case or class of cases, condone the delay in receipt of Form ITR-V. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Commissioner may call for fresh Form ITR-V in special circumstances, where the Form ITR V earlier submitted cannot be considered for technical reasons. </font></p> </blockquote> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Processing of Returns: </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) The Centre shall process a valid return of income in the following manner, namely:- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) the sum payable to, or the amount of refund due to, the person shall be determined after credit of such Tax collected at Source (TCS), Tax Deducted at Source (TDS) and tax payment claims which can be automatically validated with reference to data uploaded through TDS and TCS statements by the deductors or the collectors, as the case may be, and tax payment challans reported through authorised banks in accordance with the procedures adopted by the Centre in this regard. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) an intimation shall be generated electronically and sent to the person by e-mail specifying the sum determined to be payable by, or the amount of the refund due to, the person; and </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) any intimation to the person to pay any sum determined to be payable shall be deemed to be a notice of demand as per the provisions of section 156 of the Act and all other provisions of the Act shall be applicable accordingly. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The Commissioner may,- </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) adopt appropriate procedure for processing of returns; or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) decide the order of priority for processing of returns of income based on administrative requirements. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Wherever a return cannot be processed in the Centre for any reasons, the Commissioner shall arrange to transmit such return to the Assessing Officer having jurisdiction for processing. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Appellate Proceedings: </font></strong></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Where a return is processed at the Centre, the appeal proceedings relating to the processing of the return shall lie with Commissioner of Income-tax (Appeals) [CIT(A)] having jurisdiction over the jurisdictional Assessing Officer and any reference to Commissioner (Appeals) in any communication from the Centre shall mean such jurisdictional CIT (Appeals). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Remand reports, giving effect to appellate order and any other reports to be furnished before the CIT (Appeals) shall be submitted by the Assessing Officer having jurisdiction as regards the person. </font></p> </blockquote> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2012/it12not002.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No. 2/2012 Dated: January 04, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Provisions of IT Act to apply to processing of returns </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has directed that certain provisions of the Act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptations as specified: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Section 139 – Return:</strong> A person shall not be required to appear either personally or through authorised representative before the authorities at the Centre in connection with any proceedings. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Section 143 – Assessment:</strong> Intimation shall be generated electronically and sent to the person by e-mail specifying the sum determined to be payable by, or the amount of the refund due to, the person; any intimation to the person to pay any sum determined to be payable shall be deemed to be a notice of demand as per the provisions of section 156 of the Act and all other provisions of the Act shall be accordingly applicable. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Section 154 – ROM:</strong> An application for rectification shall be filed electronically to the Centre in the format prescribed and shall be processed in the same manner as an Income-tax return. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Section 245 – set-off of refund:</strong> The set-off of refund, if any, arising from the processing of a return, against tax remaining payable shall be done by using the details of outstanding tax demand in respect or file person as uploaded unto the system of the Centre by the Assessing Officer. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Section 282 – service of notice:</strong> The service of a notice or order or any other communication by the Centre may be made by: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) sending it by post; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) delivering or transmitting its copy thereof, to the person's e-mail address by the Centre's e-mail; </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) placing its copy in the my account menu of the person on the official website for e-filing of returns; or </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) any of the modes mentioned in section 282(1) of the Income-tax Act. </font></p> </blockquote> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=35&filename=notification/cbdt/2012/it12not003.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No. 3/2012 Dated: January 04, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of SCOMET Items - DGFT Notification </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has amended the 'Appendix 3' to Schedule 2 of ITC (HS) Classifications of Export and Import Items, 2009-14 to stipulate that: </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Supply of SCOMET Items from DTA to SEZ:</strong> No export permission is required for supply of SCOMET items from DTA to SEZ. However, all supplies of SCOMET items from DTA to SEZ will be reported to the Development Commissioner of the respective SEZ by the supplier in the prescribed proforma (Annexure 1) within one (1) week of the supplies getting effected. An annual report of such supplies from DTA to SEZ shall be sent to SCOMET Cell, DGFT (Hqrs), Department of Commerce, Udyog Bhawan , Maulana Azad Road, New Delhi-110011, by the Development Commissioner (DC), SEZ in the prescribed proforma (Annexure 2). Report by the DC, SEZ to be filed by 15th May of every financial year for the supplies effected during the preceding financial year. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export of SCOMET Items from SEZ to outside the country:</strong> Export permission is required if the SCOMET items are to be physically exported outside the country from SEZ i.e to another country (Refer Rule 26 of the SEZ Rules, 2006). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the policy provisions enshrined in FTP and SEZ Act, 2005, export permission is required for supply of SCOMET items from DTA to SEZ. With this notification, no such permission will be required. However, export permission will continue to be required for export of SCOMET items outside the country both from SEZ and DTA (including EOUs). </font></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">What does SCOMET mean? Please see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=9508"><strong>DDT 1174- 12.08.2009 </strong></a></font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not093.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 93/(RE-2010)/2009-2014, Dated: January 06, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Allocation of 10,000 MTs of white sugar for export to EU </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Director General of Foreign Trade has allocated a total quantity of 10,000 MTs (Ten thousand metric tonnes) of white Sugar for export of CXL Concessions Sugar to European Union (EU) for the period October 2011 to September 2012. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per HS Code 1701 00 00 in the Schedule-2 of ITC(HS) Classification of Export and Import Items, as amended, M/s Indian Sugar Exim Corporation Limited, New Delhi is the designated agency for export of Sugar to EU under Preferential Quota. </font></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn089.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 89/(RE-2010)/2009-2014, Dated: January 06, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Export of 8,300 MTs of white sugar to USA under Tariff Rate Quota </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Director General of Foreign Trade has allocated a total quantity of 8,300 MTs of White Sugar, out of non-levy(free sale) quota for export under tariff rate quota(TRQ) to USA for the US fiscal year 2012 (October 1, 2011 to September 30, 2012). This export will be through M/s. Indian Sugar Exim Corporation Ltd, New Delhi. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=47&filename=notification/dgft/2010/dgft10pn090.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Public Notice No. 90/(RE-2010)/2009-2014, Dated: January 06, 2012 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">GST – State Finance Ministers Meeting Today </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Empowered Committee's meeting is to start in Bhopal today. Finance Ministers of 11 States will discuss common interests, especially the proposed imposition of service tax on the basis of the negative list of services. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Dangerous to enter US with a Laptop</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> long as they do not use invasive techniques such as strip searches, the US Customs does not need reasonable suspicion or probable cause to seize what they want - including laptops. A survey last month by the Association of Corporate Travel Executives found that nearly half of the participating companies did not know customs agents could inspect, copy, or even seize travellers' laptops. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">You shouldn't take anything across the border that you don't want to expose to another set of eyes. </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Tuesday's cases</font></strong></font></strong></font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left">Customs </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs authorities have no jurisdiction to decide matter with regard to eligibility of credit under DEPB scheme: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is for the licensing authority to decide whether any particular export qualifies for the DEPB scheme or not. The Customs authorities, at best, can bring to the notice of the licensing authority the factual position and it is for the licensing authority to decide whether the export would qualify for the DEPB benefits or not. The Customs, on their own cannot decide upon the issue of eligibility to DEPB benefits of exports made by an exporter. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Whether proviso to Sec 201(1) comes into play only to negate imposition of penalty when AO is satisfied with sufficient reason for short deduction of TDS - YES, rules Delhi HC</font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Assessee was held to be an 'assessee in default' on account of short deduction and short payment of the taxes which ought to have been deducted at source in respect of reimbursements made to its employees such as watchmen, gardeners and sweepers. The appeals also pertained to the reimbursement of travel expenses of the employees of the assessee company on account of their travel to and fro their residences and office. It also pertained to the reimbursement of expenses incurred by the employees for journals, newspapers and periodicals. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax demand on Kings XI Punjab - CESTAT orders pre-deposit of Rs. 28 Lakhs. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>the case payments made to the company in Sri Lank for signing up the foreign players, the service is classified by the impugned order in "Business Auxiliary service". For such classification, it is necessary to first conclude that players are providing input service to the appellant. This is an arguable matter. For the present, Tribunal is of the view that only about 10% of the payments made to players is for service rendered by them. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Day. </font></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p> </body> </html>