TIOL-DDT 470 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT
470</font><br>
16 10 2006<br>
Monday</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Income
Tax – waiver of interest</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
CBDT has directed that Chief Commissioners and DGs may reduce or waive interest
charged under section 234A, or section 234B or section 234C in the following
cases. However, no reduction or waiver of interest shall be ordered unless the
assessee has filed the return of income for the relevant assessment year and
paid the entire income-tax. They may also impose any other conditions for the
reduction or waiver of interest.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1.
Where during the course of proceedings for search and seizure under section
132 of the Income-tax Act, or otherwise, the books of account and other incriminating
documents have been seized, and the assessee has been unable to furnish the
return of income for the previous year.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2.
Any income chargeable to income-tax under any head of income, other than "Capital
Grains" is received or accrued after due date of payment of the first or
subsequent instalments of advance tax which was neither anticipated nor was
in the contemplation of the assessee, and the advance tax on such income is
paid in the remaining instalment or instalments.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3.
Where any income was not chargeable to income-tax in the case of an assessee
on the basis of any order passed by the High Court and as a result, he did not
pay income-tax in relation to such income in any previous year, and subsequently,
in consequence of any retrospective amendment of law or the decision of the
Supreme Court of India, or a decision of a larger Bench of the jurisdictional
High Court the advance tax paid by the assessee during such financial year
is found to be less than the amount of advance tax payable on his current income,
and the assessee is chargeable to interest.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4.
Where a return of income could not be filed by the assessee due to unavoidable
circumstances and such return of income is filed voluntarily by the assessee
or his legal heirs without detection by the assessing officer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> In
a major assessee friendly decision, the Board has directed that if any petition
had been rejected in the past because these directions did not exist, they may
be reconsidered in the light of the present order, but if any interest had been
waived in the past, those orders will not be re-opened. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=36&filename=notification/cbdt/2006/instruct01.htm">ORDER
in F.No.400/29/2002-IT(B) Dated: June 26, 2006</a> </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">ER
1 and ER 3 again amended - Unpardonable waste of paper</span></font></strong></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=1892">From
TIOL-DDT 116 - 17 05 2005</a></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The great babus
of North Block who use only government stationery have absolutely no idea as
to the cost of paper. The CBEC must have been responsible for a large chunk
of forest wealth being depleted. The frequent notifications and amendments they
bring out cost this nation tons and tons of paper. The latest contribution
to the destruction of forests is the new form for monthly returns. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The good old RT
-12 returns survived for more than a quarter of a century, of course with a
few amendments. Then came the ER-1 from 26<sup>th</sup> June 2001. This lasted
for a little over two years when the form was changed on 15<sup>th</sup> September
2003. The 2003 ER-1 could not complete a full year before it was changed on
4<sup>th</sup> August 2004. And this return could be used for exactly a month
when by notification No. 25/2004 dated 27.9.2004, the form was again changed.
And in less than a year the form is again changed now.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The forms were
again amended on 16.5.2005 and now in less than 18 months, the forms are again
changed. This time around the provocation is LTU. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Perhaps the Government
does not realise the amount of trouble it causes the assessees to adapt to the
new forms and that too in such unfailing frequency.. For those using computers
to generate the forms, it is a difficult task to change the software and for
large corporates who use the same software in all their units, it is pandemonium
for some time.</font></p>
<p align="justify"></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is another
tragic angle to this. In many cities you will find small, poor traders printing
these forms and selling them to SSI units and other small manufacturers, for
a small profit. Whenever the Government changes the proforma, all the printed
materials lying in stock with these small traders become useless and they incur
heavy losses, promoting them from poverty to starvation.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Even large units
would get their stationery printed for a year or two and all that would go waste
now. Perhaps there should be some law that whenever the Government changes the
proforma, the forms have to be supplied for a year at Government cost. <b>It
is sheer <i>adhoc</i> callousness and lack of concern for the assessees that
make our babus behave like this</b>. Only those officers should be posted to
the Board who have at least one close relative running a small industry and
paying excise duty. Only then they will understand the agony they are able to
cause in their great notification manufacturing and repairing exercise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>And what is
ER-3. </b>It is the quarterly return to be filed by assessees availing exemption
based on value of clearances. But what is that exemption? Is the Board not aware
that Notification No. 9/2003 is rescinded? Now who is to file the ER-3? Does
the Board know any assessee who is required to file the ER-3?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>And incidentally,
is the Finance Ministry not aware of the enactment of the Finance Bill 2005?
</b>ADE is defined in the forms as <b>ADE levied under clause 85 of Finance
Bill, 2005. </b>Hasn’t the Finance Bill become the Finance Act? Are they aware
that Finance Bill 2005 simply dopes not exist now? <b> </b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=30&filename=notification/excise/2006/exnt06_23.htm">NOTIFICATION
NO. 23/2006 - CX (N.T.), Dated: October 12, 2006 </a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Import
of non-edible oils- mis use suspected</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Board apprehends that edible grade oil is being mis-declared as non-edible grade
and is being sold in the domestic market exerting a downward pressure on the
domestic edible oil prices. It is also apprehended that non-edible grade oils
might have been used for adulteration of edible oils. Non-edible grade crude
palm oil can now be imported only at 100% rate of duty. The increase in import
duty on non-edible grade oils, may not necessarily mean that there is misuse,
as soap manufacturers import such non-edible grade oils.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
as a precautionary measure wants field formations to check any mis-declaration
of the imported oils and specific instances of mis-declaration, to be brought
to the notice of the Board. These cases shall be thoroughly investigated and
appropriate action taken.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2006/instruct08.htm">F.No.
450/142/2006-Cus.IV Dated: October 12, 2006.</a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Supari
(betelnut) is an item of food</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Directorate General
of Health Services (DGHS) has opined that Supari (betel nut split or whole)
is an item of food and this view has the support of the Supreme Court. So the
Board wants that provision relating to clearance of food items would be applicable
while allowing clearance of supari from Customs locations.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2006/instruct09.htm">F.No.
450/100/2006-Cus.IV Dated: October 12, 2006. </a></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">One
year of Right To Information – CIC on the dock</font></b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/pm.jpg" width="252" height="191" border="1" align="left">The Central government which was the architect of Right to
Information (RTI) Act, is a major defaulter.</font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A study conducted
by Delhi-based NGO, Centre for Media Studies (CMS), says that 43 per cent of
Central ministries and departments have less than 50 per cent compliance rate
when it comes to responding to RTI requests. </font></p>
<table width="150" border="1" cellspacing="0" cellpadding="3">
<tr>
<td><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The PM with
the CIC</font></td>
</tr>
</table>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Twenty-six per
cent comply with RTI requests in 50-70 per cent cases while only 17 per cent
respond in more than 70 per cent of the </font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">cases. In states
and <st1:place><st1:PlaceName>Union</st1:PlaceName> <st1:PlaceType>Territories</st1:PlaceType></st1:place>
(UTs), the compliance rate averages just 29 per cent. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
there has been no compliance of Section 4 (2) of the Act, which requires public
authorities to disclose information suomotu. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
most public authorities, particularly at the district level, do not display
names and details of public information officers (PIOs) on their notice boards
or appoint very junior officials as PIOs. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
People in rural areas have no access to information under the RTI as commissioners
are located in capital cities. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Very often the information provided is incomplete, misleading, and unclear</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The judiciary, including Bombay High Court, has not complied with the provisions
of the RTI and designated PIOs and appellate authorities.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Most of the information commissioners do not use the penalty clause against
officials providing wrong or no information.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The CIC has so far penalised only in two cases and withdrew the penalty in one
case later.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
"we must guard against the growth of professional middlemen in the use
of this Act as seen in some other countries.", said the Prime Minister
at the first anniversary celebrations and added, “Since it is a law for common
benefit in relation to public authority, we are all stakeholders in the Act
and must guard against allowing it to become a tool for promotion of an adversial
relationship between stakeholders.”</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
inaugural of the First anniversary attended by the President did not really
go well, with protestors wearing the T-shirts that had sported slogans like
"President we want to speak for 2 minutes with you", "CIC has
killed RTI" and "Sack CIC, Save RTI".</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
his address in the presence of the PM on the valedictory Day, Chief Information
Commissioner WajahatHabibullah remarked, "One of the informal consensus
on the opening day was to sack me. But I do not know whether that consensus
still stands or not after three days of deliberations."</font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">The
ego trip</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">More
than thirty years ago, as a student I went to interview a Maharajah. I had a
prior appointment with him. I went to the palace on a bicycle. The security
man at the gate stopped me and talked to me in an abusive tone. He just could
not accept that a stupid college student on a bicycle had an appointment with
the Rajah. The Rajahsaheb who was sitting in the garden saw me and walked down
the whole way, to receive me; he took me inside and made me sit on a throne
like chair and himself sat only after I was comfortably seated. The interview
went on so well that later I was invited to a dinner hosted by the Rajah for
the President of India. He treated me like a Rajah while the peon at the gate
treated me like a peon. The attitude with which you treat others perhaps depends
on the altitude that you are in. Today we have one of our very popular writers
in the guest column talking about the giant sized ego of Pygmies. </font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">TIOL’sXCuSe
– excisable? </font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
seems there was an incorrigible litigant who would file a case at the drop of
a hat. Over a period of time he filed so many cases that it became a world record
and then one day he filed a case against the publishers of the Guinness Book
of World Records for not including his name in the book. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">One
of our regular columnists called us the other day and told us rather in hushed
tones that TIOL’sXCuSe is excisable. We said, “Fine, send us the story”. For
a change, we take on ourselves. See our exclusive.</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></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@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></span></font></p>
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