TIOL-DDT 2533
06 02 2015
Friday

THE CBDT has amended the Income Tax Rules relating to Safe Harbour Rules.

A Government company engaged in the business of generation, transmission or distribution of electricity, is an 'eligible assessee' for application of safe harbour rules.

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:

CBDT has also notified Form No. 3CEFB - the Application for Opting for Safe Harbour in respect of Specified Domestic Transactions.

CBDT Notification No.11/2015, Dated: February 04 2015.

Department Files Appeal in case already decided in appeal

THE Revenue Department's contribution to Revenue is doubtful, but their contribution to litigation is humungous. See this case.

(i) A Deputy Commissioner passed an Order on 10.1.2006 (obviously confirming the demands made in the SCN)

(ii) The Assessee appealed to the Commissioner (Appeals) who set aside the impugned order on 12.7.2006.

(iii) Till then, the Revenue kept quiet.

(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.

(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.

(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.

(vii) Department is not going to tolerate such audacity and they took the matter in appeal to the High Court.

(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.

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.

Please See 2015-TIOL-285-HC-MAD-CX

Customs - New Exchange Rates from Today

CBEC  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.

Notification No.18/2015 - Cus.,(N.T.), Dated: February 05, 2015

High Level Committee to suggest measures for improved monitoring of implementation of Corporate Social Responsibility policies

A 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.

Terms of Reference of the Committee:

(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.

(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.

(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.

(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.

(v) Any other matter incidental to the above or connected thereto.

Ministry of Corporate Affairs General Circular No. 01/2015, Dated: February 03, 2015

Come to Office on time and keep it clean - Commissioner to staff

THE Commissioner of Customs JN Custom House, Mumbai in a Standing Order states:

	It has been observed that the officers are not attending office at the stipulated time.
	All Officers and Staff members posted in NS I, III and V are directed to ensure that they attend office on time.
	The Senior officers are directed to ensure punctuality and proper attendance and lead by example.
	Officers shall ensure that everyone under their charge is attending office regularly and on time.
	In case of delay due to unavoidable circumstances, the supervisory officer should be informed by the concerned.
	Cleanliness in the office is very important. All officers and staff members are directed to keep their office space clean.
	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.

This is a Circular that the Board should issue to all the formations all over the country.

This is what I found in one of the Revenue offices on 2/2/2015.

JN Custom House Standing Order No. 07/2015, Dated: February 03 2015.

Until Monday with more DDT

Have a nice weekend.

Mail your comments to vijaywrite@tiol.in