TIOL-DDT 1977 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=14276"><img src="http://www.taxindiaonline.com/RC2/image/ddt/ddt_1794.jpg" alt="DDT in Limca Book of Records" width="175" height="120" hspace="5" border="0" align="right"></a></font></strong></font><font color="#663399" size="3">TIOL-DDT 1977</font><br>
06.11.2012 <br>
Tuesday</strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Defaulting Cost Auditors - File Your Form 23D Immediately</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>MINISTRY</strong> of Corporate Affairs vide <a href="http://www.mca.gov.in/Ministry/mcaoffices/CAB_Circular_15-2011_11Apr2011.pdf"><strong>General Circular No: 15/2011</strong></a>, dated April 11, 2011 had prescribed a revised procedure to be followed for appointment of cost auditors.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">As per the revised procedure, each company is required to e-file its application with the Central Government in the prescribed Form 23C within ninety days from the date of commencement of each financial year, which shall be approved by MCA within 30 days. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">After approval by MCA, the company is required to issue formal letter of appointment to the cost auditor, who shall, within 30 days of receipt of such letter of appointment, inform the Central Government in the prescribed Form 23D along with a copy of such appointment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">MCA has observed that: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Since April 1, 2011, though all the appointment applications made by the companies concerned in Form 23C have already been approved by the MCA, a large number of cost auditors have defaulted in filing the required Form 23D within the stipulated time. In many cases, the default period is even more than a year. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This has been viewed very seriously by the Ministry. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So they have advised all defaulting cost auditors to file their required Form 23D that have already become due till date, by December 16, 2012 positively. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case of any further default, names of such defaulting members shall be sent to the Institute on December 17, 2012 intimating the Institute to initiate Disciplinary Proceedings against them. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In cases where the company concerned, after approval of Form 23C, has failed to issue the formal letter of appointment to the cost auditor, they shall do so within 15 days of the issue of this Circular enabling the cost auditor to file Form 23D within the extended time indicated above.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case of non-compliance, the company and every officer thereof who is found to be in default shall be punishable as per provisions of the Companies Act, 1956. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Ministry wants the Institute of Cost Accountants of India to circulate this for the information of all concerned.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/mca_circular_35_2012.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ministry
of Corporate Affairs General Circular No. 35/2012, Dated: November 05,
2012.</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Seminar on Gender Sensitization at NADT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> National Academy of Direct Taxes is organising a one-day seminar on 29th November 2012 on "gender sensitization" for IRS officers from Assistant Commissioner to Additional Commissioner level. The Seminar aims to: </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Enlighten the participants about the Concept of Gender. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Make the participants aware about gender differences. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Make the participants aware about gender specific needs and problems. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Inculcate respect for self (heightened morale) and respect for others (Spirit of Collaboration) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Make the participants aware about the rules and regulations for prevention of sexual harassment at work places. </font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Are the IRS officers small children that they should be enlightened about the <font color="#FF0000"><em>Concept of gender</em></font> and that they should be made aware about <em><font color="#FF0000">gender differences?</font></em> Obviously, these are not simple concepts, which ordinary people understand but are highbrow stuff, which should be taught in a National Academy. It seems there is a concept called, "add women and stir". The concept is simple - If you add a new ingredient to a dish, the flavour of the dish - and often the dish itself - completely changes. If you add women to organizations, roles, and communities that have been created by and for men, the very nature of these things change both in small ways and big ways. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The NADT wants Chief Commissioners to nominate a lady officer and a gent officer each from their charge for the enlightening course. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, both the Revenue Boards in India are headed by ladies. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Ranchi needs at least three CIT Appeals</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> received this from a leading CA - </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There was a news article in the site stating the ‘<strong>pendency of APPEALS BEFORE CIT(Appeals)</strong> - <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16196"><strong>DDT 1972 - 30.10.2012</strong></a>'. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this matter, I would like to bring forth a very important discussion to the notice of all the taxitizens. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ranchi is a place which has no CIT(Appeal) from late 2008 onwards. The jurisdiction of CIT(Appeal), Ranchi not only covers the jurisdiction of Appeals arising out of the Assessing Officers of Ranchi and Daltonganj but it also covers all the Appeals pertaining to the office of the Additional Commissioner (Central), Ranchi who has the jurisdiction of the search assessments. The Addl. Commissioner holds the supervisory powers of four deputy Commissioners (AOS) </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A very strange occurrence has taken place in Ranchi, which has called for unnecessary dispute in the Courts. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Office of the CIT(Appeal) was vacant for a long time. The Hon'ble Board posted a Commissioner of Appeals here who has joined against his will, which is clear with certain intentions. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Assessments are going on and the Appeals are mounting up. By the end of December, the pendency of CIT(Appeal), Ranchi would not be less than 5000 cases. The Assessing Officer, who has made assessments are invoking the provisions of Section 221 and 226 against which the Writs are filed before the Hon'ble Jharkhand High Court. High court is suggesting the postings but nothing concrete has come out. One day, contempt petition against the Board may come up. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Central Board of Direct Taxes is giving additional charges to CIT(Appeals) of different Regions but for the reasons best known, nobody opts for this. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Four years back, Ranchi was considered to be a model where performance of Bar and Bench was exemplary. But then what happened? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There are Commissioners who would like to be posted at Ranchi. Why the charges are not given to them? The Bar and Bench relationship can again be made if Ranchi is not considered as a place of punishment posting . </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The office of the CIT (Appeals) has its own integrity and at this juncture, it should be seen that steps should be taken to post good officer understanding the Tax Laws so that a good place is not made bad. Due to the vacant post of CIT(Appeals), the pendency before the Appellate Tribunal has gone down to 200 cases only whereas, the cases pending before the CIT(Appeal) are around 5000. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It is expected that in each year, a CIT(Appeal) would dispose around 300 cases. If the statistics are believed then to clear up this pendency, another 10 years would be needed. </font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Justice delayed is justice denied and this is not only going to be set back to the assessee but it becomes a burden to the Revenue also when the Tax collected forcefully is returned with interest by the Central Government. </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It further destroys a congenial atmosphere and with this the Tax friendly atmosphere so created in past is totally disturbed. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://taxindiaonline.com/"><strong>taxindiaonline.com</strong> </a>has always raised issue for the well being of the Department as well as the assessee. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We most graciously pray to take up the issue for the larger interest of Jharkhand. </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">48 Posts of CIT lying vacant in CBDT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WHILE</strong> Ranchi is suffering without a CIT(A), the CBDT has announced that as on 05.11.2012 (Yesterday), they have 48 posts of Commissioners lying vacant and they have shown one vacant post in Ranchi - that could be that of the CIT(A). Now if the post is lying vacant for the last four years as our Netizen informs, it cannot be filled as per the Expenditure and Finance Secretary's instructions which we carried yesterday. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So, perhaps Ranchi may continue to enjoy the absence of a CIT(A) for some more time. </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But why can't the Board divert some of the jurisdictional Commissioners as CIT(A)? Not many takers? </font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Promotions - Contempt Petition Against Revenue Secretary -Dismissed? </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>WE</strong> understand that the contempt petition filed by the All India Association of Central Excise Executive Officers against the Revenue Secretary for not implementing the Supreme Court order regarding the ratio of Superintendents of Central Excise, Superintendents of Customs and Appraisers of Customs in promotion to the cadre of Assistant Commissioners was dismissed by the Supreme Court yesterday.</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"> - Wednesday'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">In present day circumstances, particularly for safety of passengers travelling by air, persons like appellants being in security staff can do anything for monetary consideration - appellants helping to smuggle foreign currency for consideration of few thousand rupees & mobile phones have rightly been imposed penalty u/s 114 of Customs Act, 1962 - leniency not warranted - Appeals dismissed: CESTAT </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN</strong> this case, the foreign currency was recovered from one Shri Iqbal Suleman while boarding a flight of Oman Airways to Dubai. Shri Suleman in his statement recorded under Section 108 of the Customs Act named the appellants who helped him in taking the currency in the airport without disclosing to the Customs authorities for the consideration of Rs.4,000/-, i.e. Rs.2,000/- each. The appellants also in their statements recorded under Section 108 of the Customs Act admitted the facts narrated by Shri Suleman. The appellants also admitted that they had received, on earlier occasions also, gifts from Shri Suleman such as mobile phones etc. The appellants being in the security staff of the Oman Airways are to look after security of the passengers. In the present case, the appellants helped Shri Suleman to smuggle foreign currency for consideration. In the present day circumstances, particularly for the safety of passengers travelling by air, the persons like the appellants being in the security staff can do anything for a monetary consideration. </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 when assessee's shares are pledged only to raise loan, such an activity gives rise to capital gains, and difference between market value and face value is to be taxed - NO: Bombay HC </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issues before the Bench are - Whether when assessee's shares are pledged only to raise loan, such an activity gives rise to capital gains, and the difference between the market value and the face value is to be taxed; Whether when only the right to use an asset is transferred for a fixed tenure, its consideration is to be spread over the term of its lease period as per AS 19 and Whether such a case is a fit case for invocation of revisionary authority u/s 263. And the verdict goes against the Revenue. </font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Central Excise </font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Search warrant issued in name of company which had stopped manufacturing activities but had not cancelled registration and had given factory on lease to another company - merely because other company carried on its manufacturing activities from same premises, same would not be ground to hold that entire search itself was invalid or without authorisation - Petitions dismissed: High Court </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> High Court noted that in none of the petitions any of the petitioners have made any personal allegations of mala fide against any of the Central Excise authorities; that none of the authorities have been named in the petitions who according to the petitioners were driven by personal grudge so as to victimise the petitioners through search operations; that none of the officers of the Excise department have been joined in the personal capacity in any of these petitions; that all these petitions have been filed almost a year after the search and there is no explanation on record as to why with such strong allegations of mala fide , the petitioners kept quiet for nearly a year.</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><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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