New Income Tax Reutrns, Form 35 , Form 15CA, 15CB, 15CC issued by Income Tax Department

Online filing of Appeal before Commissioner (Appeal) using newly Notified Form 35 has been enabled for taxpayers mandated to E-file their returns using DSC. EVC option will be available shortly. 

New Forms 15CA,15CB, 15CC are available for E-filing.  

ITR 1 and ITR 4S for AY 2016-17 i.e. FY 2015-16 are now available for E-filing. Other ITRs will be available shortly.
All the above mentioned forms are available on http://incometaxindiaefiling.gov.in/

Status of Delhi HC petition for extension of due date

Honble Delhi High Court today ie. 21.09.2015 in WP(C) 9032/2015 titled as Avinash Gupta V/s Union of India and others while disposing off the WRIT after a long hearing of 1 hour and while considering all the arguments raised therein Had interalia issued directions to CBDT To notify IT Forms on or before 1st day of the assessment year. Incase on non notification of forms to record reasons for not doing the same.
This is a historic moment since the CBDT has been asked to notify the forms well in time and henceforth extentions may not be sought,if forms are available timely.
A copy of the order would be available by tomorrow and shall be circulated to all thereafter. Further legal advise and opinion in this matter is being sought.
Regards
Petitioner before Honble Delhi HC

Income Tax Department sends reminder to update contact details

Dear Taxpayer,

As per our records, it is observed that you have not validated your contact details yet. In order to alleviate any difficulties in submission of Income Tax Return, the Department had temporarily relaxed the requirement of validating the contact details prior to login so that taxpayers could submit their returns before the due date – July 31st 2014. However, now the Income Tax Department advises you to validate the Email ID and Mobile Number registered with e-filing account immediately. In case you have already validated the same, kindly ignore this email.

Please refer https://incometaxindiaefiling. gov.in/eFiling/Portal/StaticPDF/Update_Contact_Details.pdf for more details.

Validation of email and mobile numbers has been introduced to facilitate taxpayers as in many cases incorrect emails and mobile numbers have been provided and taxpayers did not receive important communication from the Department.

Further, it has been observed that in many cases taxpayers are not able to reset their password since the new temporary password from the Department may be sent to their registered email which may be different from the taxpayer's personal email, e.g. email of their intermediary.

The Department will send separate One Time Passwords (OTP) also referred as PIN on the mobile and email provided by the taxpayer. The OTPs have to be entered by the taxpayer after logging into their e-filing account to authenticate the same. The OTPs will remain valid for 24 hours within which the taxpayer has to complete the process. For 'Foreign/ NRI' taxpayers, the OTP validation of the email ID would be sufficient.

This is a one-time process to validate the mobile number and email ID. However, whenever the taxpayer changes the Mobile Number or email ID in their Profile, the process will be repeated to ensure that the particulars provided are correct. Further, this validation will ensure that Department can send an OTP for resetting the password used for Login in case the taxpayer has forgotten the password.

You may enter the email of any other person designated by you, in addition, as a Secondary Contact (without any restriction on the number of user accounts linked as a Secondary Contact) to also receive emails, alerts etc.

The Department requests your cooperation for completing this validation process at the earliest for a smooth and convenient return filing process.

Regards, e-Filing Team, Income Tax Department

Online filing of Audit Report u/s10AA, 44DA, 50B, 115VW from AY 2014-15

An assessee required to furnish a report of audit specified under section 10AA, section 44DA, section 50B or section 115VW of the Act, shall furnish the said report of audit  and the return of Income electronically for AY 2014-15 and onwards.

 NOTIFICATION NO. 28/2014

[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II, SECTION 3,
SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
NOTIFICATION
New Delhi, the 30th day of May, 2014Income-tax

S.O. 1418(E).─ In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (6th Amendment) Rules, 2014.
(2) They shall be deemed to have come into force with effect from the 1st day of April, 2014.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 12, in sub-rule(2), in the proviso,-
(a) after the expression “section 10A”, the expression “section 10AA” shall be inserted;
(b) after the expression “section 44AB”, the expression “section 44DA, section 50B” shall be inserted;
(c) for the expression “or section 115JB”, the expression “section 115JB or section 115VW” shall be substituted.
3. In the said rules, in Appendix-II, for FORM ITR-3, FORM ITR-4, FORM ITR-5, FORM ITR-6 and FORM ITR-7, the following FORMS shall respectively be substituted, namely:-
[Notification No. 28/2014, F.No.142/2/2014-TPL]
(Gaurav Kanaujia)
Director to the Government of India
Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax (5th Amendment) Rules, 2014 vide notification S.O. No.1297 (E) dated 16 May, 2014.

Supreme Court Lays Down Important Law On Accrual Of Income

CIT vs. Excel Industries Ltd (Supreme Court)

(i) Q whether income has accrued must be considered from a realistic & practical angle (ii) If Dept has accepted adverse verdict in some years, it cannot be allowed to challenge verdict in other years (iii) disputes as to the year of taxability with no/ minor tax effect should not be raised by Dept
Pursuant to the import-export policy of the Government, the assessee was entitled to make duty free imports of raw materials in respect of the exports made by it. The assessee accounted for the benefit of the entitlement to make duty free imports in the year of export but claimed that the benefit was not chargeable to income-tax in the year in which the exports were made but it was chargeable to tax only in the year in which the imports were availed of and the raw materials consumed. The AO rejected the contention and held that as the assessee was following the mercantile system of accounting, the right to receive the benefit accrued as soon as the export obligation was fulfilled and it was chargeable to tax in that year u/s 28(iv). On appeal, the CIT(A), Tribunal and High Court upheld the assessee’s stand. On appeal by the department to the Supreme Court, HELD dismissing the appeal:

(i) Three tests have been laid down by various decisions of the Supreme Court to determine when income can be said to have accrued: (a) whether the income is real or hypothetical; (b) whether there is a corresponding liability of the other party to pay the amount to the assessee & (c) the probability or improbability of realisation of the income by the assessee has to be considered from a realistic and practical point of view. Applying these tests, on facts, even if it is assumed that the assessee was entitled to the benefits under the advance licences as well as under the duty entitlement pass book, there was no corresponding liability on the customs authorities to pass on the benefit of duty free imports to the assessee until the goods are actually imported and made available for clearance. The benefits represent, at best, a hypothetical income which may or may not materialise and its money value is therefore not the income of the assessee. Also, from a realistic and practical point of view (the assessee may not have made imports), no real income accrued to the assessee in the year of exports and s. 28(iv) would be inapplicable. Essentially, the AO is required to be pragmatic and not pedantic (Shoorji Vallabhdas 46 ITR 144 (SC), Morvi Industries 82 ITR 835 (SC) & Godhra Electricity Co 225 ITR 746 (SC) followed);

(ii) Further, as in several assessment years, the Revenue accepted the order of the Tribunal in favour of the assessee and did not pursue the matter any further, it cannot be allowed to flip-flop on the issue and it ought let the matter rest rather than spend the tax payers’ money in pursuing litigation for the sake of it (Radhasoami Satsang 193 ITR 321 (SC) & Parashuram Pottery Works 106 ITR 1 (SC) followed);

(iii) Further, as the dispute was only as to the year of taxability and as the rate of tax remained the same the dispute raised by the Revenue is entirely academic or at best may have a minor tax effect. There was, therefore, no need for the Revenue to continue with this litigation when it was quite clear that not only was it fruitless (on merits) but also that it may not have added anything much to the public coffers. It is hoped that the Revenue implements its litigation policy a little more practically and a little more seriously.