TIOL-DDT 1790 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1790 </font><br>
07.02.2012 <br>
Tuesday </strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Processing of Returns of AY 2011-12 - Backlog Clearance </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> order to clear backlog of returns, the CBDT has decided that: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(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. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(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. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Where there are TDS claims with invalid TAN, TDS credit for such claims are not to be allowed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) In all other cases, TDS credit shall be allowed after due verification. </font></p>
</blockquote>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=67&filename=notification/cbdt/2012/instruct1201.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT INSTRUCTION NO. 01/2012 [F.NO.225/34/2011-ITA.II], Dated February 02, 2012 </font></strong></a></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Bajanaama</strong></font></p>
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<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/bajanaama_cover.jpg" alt="Legal Corner Icon" width="245" height="302" hspace="5" border="0" align="left"></font></strong></font></td>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/Amar_Nath_Sharma.jpg" alt="Legal Corner Icon" width="214" height="340" hspace="5" border="0" align="left"></font></strong></font></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> chance browsing of junk in a kabadi shop two decades ago turned a casual music lover Amar Nath Sharma into a keen researcher and archivist of the history of sound recording. Incidentally, he is a Commissioner in the Customs & Central Excise department. His work Bajanaama (A Study of Early Indian Gramophone Records) is a happy read and an illustrated digest of the music scene in India in the first quarter of the last century. The book documents the history of phonographic recordings of Hindustani music. A veritable treasure of interesting insights, Bajanaama is a milestone in the discography of Indian records and brings to light little known facts and photographs of rare records and forgotten artists. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">[Baja is a generic name for all musical instruments. Naama (namah) is a Persian word that loosely means story and biography.] </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The book is being released today evening at Akashwani Bhavan, Mumbai. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DDT</strong> wishes him success in his endeavours. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Foreign Contribution (Regulation) Act, 2010 - Salient Features </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Foreign Contribution (Regulation) Act, 2010 and the Foreign Contribution (Regulation) Rules, 2011, came into force on May 01, 2011. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Act extends to the whole of India, to its citizens outside India and also to associate branches or subsidiaries outside India, of companies or body corporate, registered or incorporated in India. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The following are the persons prohibited from accepting foreign contribution: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(a) Candidate for election; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(b) Correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(c) Judge, government servant or employee of any entity controlled or owned by the Government; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(d) Member of any Legislature; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(e) Political party or office bearers thereof; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(f) Organisations of a political nature as may be specified; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(g) Associations or companies engaged in the production or broadcast of audio news or audio-visual news or current affairs programmes through any electronic mode or form or any other mode of mass communication; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(h) Correspondent or columnist, cartoonist, editor, owner of the association or company referred to in (g) above. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Act imposes restrictions on acceptance of foreign hospitality by certain specified persons. It mandates that no member of a Legislature or office-bearer of a political party or Judge or Government servant or employee of any corporation or any other body owned or controlled by the Government shall, while visiting any country or territory outside India, accept, except with the prior permission of the Central Government, any foreign hospitality. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Act imposes a prohibition, on persons registered and granted certificate or has obtained prior permission under the Act, from transferring such contribution to any other person, unless such other person is also registered and had been granted a certificate or obtained the prior permission under the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Every person who has been granted a certificate or given prior permission under Section 12 shall receive foreign contribution in a single account only through such one of the branches of a bank as he may specify in his application for grant of certificate. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Act empowers the Central Government to authorize inspection of accounts or records for verifying contravention of the provisions of the Act. It also provides for seizure of accounts and records and also articles or currency or security received in contravention of the provisions of the Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Whoever fails to comply with any provision of the Act for which no separate penalty has been provided, shall be punished with imprisonment for a term, which may extend to one year, or with fine or with both. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ The Rules, inter alia, provide for Guidelines for the Central Government for declaration of an organisation to be of a political nature, the nature of activities which would be treated as speculative activities, what constitutes administrative expenses, procedure for availing of foreign hospitality by specified categories of persons, procedure relating to application for obtaining 'registration' or 'prior permission' to receive foreign contribution, whom to make application for compounding, procedure for transferring foreign contribution to other registered or unregistered persons, the Forms to be used for various purposes etc. </font></p>
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<p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/rbi_notification.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">RBI /2011-12/383 , Dated: February 03, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Highlights of National Policy on Narcotic Drugs and Psychotropic substances</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>(i) THE </strong>policy recommends production of Concentrate of Poppy Straw (CPS) in India by a company or body corporate. This would enable India to retain its status of a traditional supplier of Opiate Raw Material (ORM) to the rest of world, while remaining competitive. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (ii) The consumption of poppy straw by addicts will be gradually reduced and finally stopped in a time frame decided by the States. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (iii) On the illicit cultivation of poppy and cannabis, the policy emphasizes use of satellite imageries for detection of illicit crop and its subsequent eradication and development of alternate means of livelihood in respect of cultivators in pockets of traditional illicit cultivation. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (iv) The private sector may be allowed production of alkaloids from opium. At present alkaloids from opium are produced only in Government Opium and Alkaloid Factories (GOAFs). </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (v) Non-intrusive methods of regulating the manufacture, trade and use of such psychotropic substances will be introduced. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) Emphasis will be laid on adequate access to morphine and other opioids necessary for palliative care, a strategy to address street peddlers of drugs, periodic surveys of drug abuse to gauge the extent, pattern and nature of drug abuse in the country, recognition of de-addiction centres. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> (vii) There will be a time bound plan of action, detailing the steps to be taken by different Ministries/ Departments/ agencies, in response to the recommendations of the International Narcotics Control Board. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The policy attempts to curb the menace of drug abuse and contains provisions for treatment, rehabilitation and social re-integration of victims of drug abuse. Implementation of the provisions of the policy will lead to reduction of crime, improvement in public health and uplifting of the social milieu. </font></p>
<p align="center"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/fm_1790.jpg" alt="Legal Corner Icon" width="400" height="233" hspace="5" border="0" align="center"></font></strong></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Finance Minister Pranab Mukherjee releasing the National Policy on NDPS, yesterday. Finance Secretary Gujral and CBEC Chairman Goel are also seen. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Superintendents Waiting For Promotion - Board Does not have ACRs </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MANY</strong> badly stagnated Superintendents in the Customs and Central Excise Department honestly believe that their much-awaited promotion is almost at the doorstep. Every day, we get anxious calls from these Assistant Commissioners in-waiting and they get very angry when we tell them that nothing is really happening. Rumours are spread that DPC was held yesterday/will be held tomorrow and orders are expected in a few hours. This has been going on since 2007! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The real position can be gauged from a letter from the Board to all the Chief Commissioners on 3 rd February 2012. The Board wants the ACR dockets of officers from the stream of Superintendent of Central Excise, Superintendent of Customs (Preventive) and Customs Appraisers by 4 th February 2012. On 3 rd February, the Board asks the Chief Commissioners to send dossiers of officers for the period 2002-03 to 2009-10 – and that too by 4 th February! This is after the Board failed to get them in response to its letters dated 08/12/2011, 11/01/2012, 19/01/2012 and 30/01/2012. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And the list sent by the Board contains 545 names! When will the Chief Commissioners send the dossiers and when will these officers get their promotion? </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And in the Board's list, at least 30 officers have retired and many are already promoted! </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And we are talking of cadre review – they should start with cadre identification. </font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Inspector Madhukar Zende of the Bombay Police first arrested an accused by name Charles Shobhraj in 1971. By 1986, Charles was an international hero/villain and Madhukar Zende arrested him a second time. Inspector Madhukar of 1971 remained an inspector in 1986 when he arrested world famous Charles Shobhraj for a second time! </font></strong></p>
<p><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/mACRs_office2012.pdf" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC F. No. A-32012/42 /2011-Ad.II , Dated: February 03, 2012 </font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">IRS Officers not filing IPRS!</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>OFFICERS</strong> of the Government are required to file an annual Immovable Property Return and these returns are to be uploaded in the website. The CBEC Member (P&V) Praveen Mahajan has written to all Chief Commissioners that <em>“the IPRs of only 10% of Group ‘A' officers for the year 2010 had been received in the Board. The list of available IPRs was uploaded on DGHRD website and the field formations were directed to send the remaining IPRs for the year 2010 <strong>(return as on 01.01.2011)</strong>. It is observed that the progress in this regard is far from satisfactory and only 13% IPRs for the year 2010 have been received so far. The list of 393 IPRs for the year 2010 which are available with the Board (Pers/EC Section) has been uploaded on the DGHRD website.” </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">She wants the Chief Commissioners to ensure that all the officers file their returns and they reach the Board latest by 8 th February. And this is in respect of the returns for the year 2010. The return for the year 2011 is also due and nobody is talking about it now. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the website, you can find the IPRs of 7 Chief Commissioners and 25 Commissioners and obviously, the rest of the officers (there are about 50 Chief Commissioners and 300 Commissioners) have no respect for Government's directions or rules and these are the officers enforcing the law and punishing people for the slightest mistake. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=70&filename=pitara/sernews/order/IPR_CBEC.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Member's Letter No. D.O. No. A-28011/52/2011-SO(Per/EC), Dated: February 02, 2012 </font></strong></a></p>
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600" size="2">Jurispruden</font><font color="#FF6633" size="4">tiol</font><font color="#006600" size="2"> – Wednesday's
cases</font></strong></font></strong></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">VAT/CST </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sale of Goods at Duty Free Shops in Airports - The State of Karnataka has no right to tax any such transaction, which takes place at duty free shops which are not within customs frontiers of India – Supreme Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>is very clear that no tax on the sale or purchase of goods can be imposed by any State when the transaction of sale or purchase takes place in the course of import of goods into or export of the goods out of the territory of India. Thus, if any transaction of sale or purchase takes place when the goods are being imported in India or they are being exported from India, no State can impose any tax thereon; when any transaction takes place outside the customs frontiers of India, the transaction would be said to have taken place outside India. </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 even if assessee undertakes frequent transactions of sale and purchase of shares, if principal is investment, bonus would also remain investment, and income earned from sale is to be treated as capital gains - YES: ITAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BONUS</strong> shares can be issued only out of accumulated profit in the form of general reserve available with the issuing company. Issuance of such shares does not enhance the value as the reserves of the issuing company get reduced on issuance of bonus shares. Therefore, the nature of bonus shares has to be taken as same as the original shares. This view finds support from the decision in the case of Madan Gopal Radhey Lal. Accordingly, it has to be held that the original equity shares and the bonus shares were held on investment account. </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">All refund claims except those mentioned under specific proposition of law laid down by Apex Court in Mafatlal Industries Ltd case, have to be and must be filed and adjudicated under provisions of Central Excise Act or Customs Act, as the case may be – Karnataka HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHEN </strong>the Act provides a complete mechanism for correcting any errors whether on fact or on law the burden is to work out his remedy within four corners of law. If the remedy is to be worked out within the four corners of law the party has accepted invoking the jurisdiction of the authority to refund within the period prescribed under the Act. In that view of the matter, we do not find any merit in this appeal. The order passed by the Tribunal is strictly in accordance with law and the law declared by the Apex Court. There is no merit in this appeal. </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>
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