TIOL-DDT 2533 · the untouched capture
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<p align="justify"><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif"><s><strong><font size="2"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><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=20079"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2014_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="250" height="123" hspace="5" border="0" align="right"></a></font></strong></font></strong></font></strong></font></strong></font></strong></s>TIOL-DDT 2533</font><font size="3" face="Verdana, Arial, Helvetica, sans-serif"></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
06 02 2015<br>
Friday</font></strong></p>
<p align="center"><font size="3"><strong><em><font color="#006600" face="Georgia, Times New Roman, Times, serif">IT - Safe Harbour Rules - CBDT Amends IT Rules </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> CBDT has amended the Income Tax Rules relating to Safe Harbour Rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Government company engaged in the business of generation, transmission or distribution of electricity, is an 'eligible assessee' for application of safe harbour rules. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where an eligible assessee has entered into an eligible specified domestic transaction in any previous year relevant to an assessment year and the option exercised by the said assessee is treated to be validly exercised under rule 10THD, the transfer price declared by the assessee in respect of such transaction for that assessment year shall be accepted by the income-tax authorities, if it is in accordance with the circumstances as specified below: </font></p>
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<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">S No </font></strong></div></td>
<td valign="top" bgcolor="#F9E6FF"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Eligible specified domestic Transaction </font></strong></div></td>
<td valign="top" bgcolor="#F9E6FF"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Circumstances </font></strong></div></td>
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<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. </font></strong></div></td>
<td valign="top" bgcolor="#C991E3"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. </font></strong></div></td>
<td valign="top" bgcolor="#C991E3"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. </font></strong></div></td>
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<td valign="top"><div align="center"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1 </font></strong></div></td>
<td valign="top" bgcolor="#E9D1F3"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Supply of electricity, transmission of electricity, wheeling of electricity referred to in item (i), (ii) or (iii) of rule THB,as the case may be. </font></td>
<td valign="top" bgcolor="#E9D1F3"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The tariff in respect of supply of electricity, transmission of electricity, wheeling of electricity, as the case may be, is determined by the Appropriate Commission in accordance with the provisions of the Electricity Act, 2003 (36 of 2003). </font></td>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has also notified Form No. 3CEFB - the Application for Opting for Safe Harbour in respect of Specified Domestic Transactions. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc2NDM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT Notification No.11/2015, Dated: February 04 2015. </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Department Files Appeal in case already decided in appeal </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Revenue Department's contribution to Revenue is doubtful, but their contribution to litigation is humungous. See this case. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) A Deputy Commissioner passed an Order on 10.1.2006 (obviously confirming the demands made in the SCN) </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) The Assessee appealed to the Commissioner (Appeals) who set aside the impugned order on 12.7.2006. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) Till then, the Revenue kept quiet. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) After the Commissioner (Appeals) passed his order, the Department filed an appeal against the DC's order - to the Commissioner (Appeals). It is a cardinal principle that the Commissioner was not supposed to pass an order in favour of the assessee. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) By this time there is a new Commissioner (Appeals) who knew his revenue well (though perhaps not the law) allowed the appeal of the Revenue on 27.3.2007, in spite of the assessee submitting that doctrine of merger will apply and so there is nothing for Revenue to appeal against. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vi) The assessee took the matter in appeal to the Tribunal which allowed the appeal holding that doctrine of merger will apply to the case. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(vii) Department is not going to tolerate such audacity and they took the matter in appeal to the High Court. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(viii) The High Court noted that in this case, the issue raised by the assessee and the Revenue is one and the same. When once the first Appellate Authority has set aside the order of the Adjudicating Authority setting aside the demand, thereby upholding the assessable value, it should be treated as the order passed by the Adjudicating Authority is merged with the Order-in-Appeal. The Department's appeal was dismissed. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The SCN was issued on 4.4.2005 and the High Court judgement in this superfast case was on 22.1.2015. The issue was valuation of excisable goods. Now, they can go to the Supreme Court arguing that High Court had no jurisdiction to decide a valuation issue. Government loses a lot of revenue it collects because of the litigation-loving overanxious officers. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please See</strong> <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=OTk1NzI=" target="_blank"><strong>2015-TIOL-285-HC-MAD-CX </strong></a></font></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600" size="3">Customs - New Exchange Rates from Today </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC </strong> has notified new exchange rates for Imported Goods and for Export Goods with effect from 06February 2015. The US Dollar is 62.45 rupees for imports and 61.45 rupees for exports. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc2NDY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Notification No.18/2015 - Cus.,(N.T.), Dated: February 05, 2015 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><em><strong><font color="#006600">High Level Committee to suggest measures for improved monitoring of implementation of Corporate Social Responsibility policies</font></strong></em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>A </strong>High Level Committee has been constituted under the Chairmanship of Anil Baijal, Former Secretary, Government of India to suggest measures for monitoring the progress of implementation of Corporate Social Responsibility (CSR) policies by companies at their level and by the Government under the provisions of Section 135 of the Companies Act, 2013.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Terms of Reference of the Committee:</font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) To recommend suitable methodologies for monitoring compliance of the provisions of Section 135 (Corporate Social Responsibility) of the Companies Act, 2013 by the companies covered thereunder. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) To suggest measures to be recommended by the Government for adoption by the companies for systematic monitoring and evaluation of their own CSR initiatives. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iii) To identify strategies for monitoring and evaluation of CSR initiatives through expert agencies and institutions to facilitate adequate feedback to the Government with regard to efficacy of CSR expenditure and quality of compliance by the companies. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(iv) To examine if a different monitoring mechanism is warranted for Government Companies undertaking CSR, and if so to make suitable recommendations in this behalf. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(v) Any other matter incidental to the above or connected thereto. </font></p>
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<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc2NDQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Ministry of Corporate Affairs General Circular No. 01/2015, Dated: February 03, 2015 </font></strong></a></p>
<p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Come to Office on time and keep it clean - Commissioner to staff </font></em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Commissioner of Customs JN Custom House, Mumbai in a Standing Order states: </font></p>
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<td valign="top" bgcolor="#FFE4CA"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been observed that the officers are not attending office at the stipulated time. </font></strong></td>
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<td valign="top" bgcolor="#FFCD9B"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">All Officers and Staff members posted in NS I, III and V are directed to ensure that they attend office on time. </font></strong></td>
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<td valign="top" bgcolor="#FFE4CA"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Senior officers are directed to ensure punctuality and proper attendance and lead by example. </font></strong></td>
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<td valign="top" bgcolor="#FFCD9B"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Officers shall ensure that everyone under their charge is attending office regularly and on time. </font></strong></td>
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<td valign="top" bgcolor="#FFE4CA"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case of delay due to unavoidable circumstances, the supervisory officer should be informed by the concerned. </font></strong></td>
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<td valign="top" bgcolor="#FFCD9B"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Cleanliness in the office is very important. All officers and staff members are directed to keep their office space clean. </font></strong></td>
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<td valign="top" bgcolor="#FFE4CA"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They should also ensure that the files and records are properly maintained in a uniform and orderly way. No clutter should be left unattended on their table/room. </font></strong></td>
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is a Circular that the Board should issue to all the formations all over the country. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">This is what I found in one of the Revenue offices on 2/2/2015.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTc2NDc=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">JN Custom House Standing Order No. 07/2015, Dated: February 03 2015. </font></strong></a></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Monday with more <strong>DDT</strong></font></p>
<p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice weekend. </font></strong></p>
<p align="justify"><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@tiol.in"><strong>vijaywrite@tiol.in </strong></a></font></p>
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