Important changes to Income Tax Rules

Central Board of Direct Taxes have recently amended the Income Tax Rules which were declared through notifications.

 The important amendments via this notification of amendments are as follows :
1. Declaration changes relating to compliance and reporting for In-House Research projects amending Rule 6 and Form 3CL, 3CLA for the same. (Notification No.29 of 28.04.2016). Effective from 01.07.2016

2. Notification No. 30 of 29.04.2016 effective from 01.06.2016:
Inserted new Rule 26C for 'Furnishing of evidence of claims by employee for claiming deductions under section 192' i.e. submitting proofs to avail Salary deduction benefits.
Its details are as follows:
The employee shall submit details of Investments, expenses etc. in Form 12BB along with proofs
for the following tax deduction benefits :

Changes in quoting PAN rules for certain transactions

Press Information Bureau
Government of India
Ministry of Finance
15-December-2015 19:59 IST

Rules regarding quoting of PAN for specified transactions amended

The Government is committed to curbing the circulation of black money and widening of tax base. To collect information of certain types of transactions from third parties in a non-intrusive manner, the Income-tax Rules require quoting of Permanent Account Number (PAN) where the transactions exceed a specified limit. Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity.

              One of the recommendations of the Special Investigation Team (SIT) on Black Money was that quoting of PAN should be made mandatory for all sales and purchases of goods and services where the payment exceeds Rs.1 lakh. 

Part Income Tax Rules notified for FY 2014-15 / AY 2015-16

[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 24th June, 2015

INCOME-TAX
S.O. 1683(E).— In exercise of the powers conferred by section 295 read with sub-clause (viii) of Explanation to sub-section (2) of section 288 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 (Ninth Amendment) Rules, 2015.
(2) They shall come into force on the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962, after rule 51, the following rule shall be inserted, namely:-
“51A. Nature of business relationship.— For the purposes of sub-clause (viii) of Explanation below sub-section (2) of section 288, the term “business relationship” shall be construed as any transaction entered into for a commercial purpose, other than, –

(i) commercial transactions which are in the nature of professional services permitted to be rendered by an auditor or audit firm under the Act and the Chartered Accountants Act, 1949 (38 of 1949) and the rules or the regulations made under those Acts;

(ii) commercial transactions which are in the ordinary course of business of the company at arm’s length price – like sale of products or services to the auditor, as customer, in the ordinary course of business, by companies engaged in the business of telecommunications, airlines, hospitals, hotels and such other similar businesses.”
[Notification No. 50/2015, F.No.142/9/2015-TPL]

(RAJESH KUMAR BHOOT)
DIRECTOR (TAX POLICY & LEGISLATION)
Note.— The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification No. S.O. 969(E), dated the 26th March, 1962 and last amended vide notification No. S.O. 1660(E), dated 22/06/2015.

Delhi ITAT : Additional evidence acceptance explained, LinkedIn profile can be an evidence, GE Energy parts Vs ADIT

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “ NEW DELHI
BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER
AND
SHRI C.M. GARG : JUDICIAL MEMBER
ITA No. 671/Del/2011
Asstt. Yr: 2001-02
GE Energy Parts Inc. Vs. Addl. Director of Income-tax,
AIFACS Building, 1, Rafi Marg, Circle 1(2), International
New Delhi-110001. Taxation, New Delhi.
PAN: AACCG 2798 N
Department by : Shri Sanjeev Sharma CIT(DR) &
Shri Vivek Kumar CIT(DR)
Assessee by : Shri S. Ganesh Sr. Counsel along with
Ms. Anuradha Dutt Adv.; S/Shri Rashi Dhir,
Sachit Jolly, Rahul Sateeja adv. &
Ms. Shwetha Bidhuri &
Ms.Roohina Dua Advocates
 
Interim order on application dated 19-2-2014 filed by the department under
Rule 29 of the ITAT Rules, 1963 for admission of additional evidence:
Before we proceed to consider the admissibility of this additional
evidence filed by the department, we may point out the proceedings which
took place in this lead appeal of GE group of cases on various dates. Hearing
of the appeal commenced on 28-1-2014 and continued on 29-1-2014 and 18-
2-2014. Thereafter on 19-2-2014 the revenue sought permission to file the
following documents as additional evidence:
S.
No.
Vol. of
Paper
book
Particulars Page no.
1. Vol. III Linkedin Profiles of Employees 1 to 94
2. Vol. IV Whistleblower’s Writ petition in Hon’ble Delhi High
Court
1 to 177
2. On 20-2-2014 the asses