Electronic Verification Code :ITR-V (acknowledgment)

CBDT Notification No. 2/2015 Dated 13.07.2015  regarding CBDT introduces Electronic Verification Code (EVC) system as an alternate mode of verification to manually signed ITR-V (acknowledgment).
 
EVC, a ten digit alpha-numeric code, to be provided using any of the 4 methods, namely –

a) internet banking ,
b) AADHAR authentication ,
c) Bank ATM card and
d) combination of registered email and mobile number (where income is below Rs 5 lakhs).
 
EVC to be generated from E-filing website, generation process may vary based on risk category of taxpayer.
 
EVC unique to an assessee's PAN, one EVC can be used to validate one return of the assessee irrespective of the AY or return types.
 
EVC to be stored against assessee’s PAN and shall be valid for 72 hours (except in case of Aadhaar authentication)
 
Click for Notification 

 
Further EVC would verify the identity of the person furnishing the return of income. The mode and process for generation and validation of EVC, a user manual was prepared which is available . Please Click to Download the user manual

No denial of registration to Trust evenif no evidence of holding camps

Where assessee-society was carrying out charitable activities by organizing medical relief camps for underprivileged sections of society, it could not be refused registration under section 12A on grounds that there was no evidence of holding such camps by way of advertising, etc., or that it did not have complete address of persons getting relief through such camps

IN THE ITAT DELHI BENCH 'D'

Lal Bahadur Shastri Bahuudeshya International Society

v.

Commissioner of Income-tax, Dehradun

R.S. SYAL, ACCOUNTANT MEMBER
AND A.D. JAIN, JUDICIAL MEMBER

IT APPEAL NO. 4030 (DELHI) OF 2013

MARCH  21, 2014 

Section 2(15), read with section 12A, of the Income-tax Act, 1961 - Charitable trust (Medical relief) - Assessee-society, engaged in organising free medical camps, claimed registration under section 12A - Commissioner denied registration inter alia on ground that there was no evidence of holding camps by way of advertising, publicity or otherwise; and register maintained by assessee for that purpose did not have a single complete address of persons getting treatment through such camps - Whether there is no bar under law to organize any medical relief camp without issue of advertisement or publicity and further since register maintained by assessee had necessary details under three broad heads viz. treatment, attendant's name and subscription, registration could not be denied for lack of complete address - Held, yes - Whether moreover focus of investigation at stage of grant of registration is chiefly on objects of trust or institution and since in instant case objects focused investigation did not yield any result jeopardizing charitable character of assessee, refusal of grant of registration to assessee was unjustified - Held, yes [Paras 4 and 5][In favour of assessee]

FACTS

No denial of sec. 54F relief when assessee gets multiple flats

No denial of sec. 54F relief when assessee gets multiple flats from builder under joint development agreement

Where in terms of development agreement, assessee handed over physical possession of property to builder allowing it to enjoy 60 per cent of land in lieu of 40 per cent of constructed area, it was to be concluded that transfer took place in year in which said agreement was entered into

Where in terms of development agreement, assessee obtained multiple flats in lieu of cost of 60 per cent of land allotted to builder, still her claim for deduction under section 54F was to be allowed

IN THE ITAT CHENNAI BENCH 'A'

Income-tax Officer, Business Ward- V (1), Chennai

v.

Mrs. P.A. Sarala

N.R.S. GANESAN, JUDICIAL MEMBER
AND A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER

IT APPEAL NOS. 1396, 1397 & 1493 TO 1495 (MDS.) OF 2013
[ASSESSMENT YEAR 2009-10]

MAY  15, 2015 

FACTS

CBDT CLARIFICATIONS ON TAX COMPLIANCE FOR UNDISCLOSED FOREIGN INCOME AND ASSETS

CBDT releases 32 clarifications on compliance window in Q&A format

BLACK MONEY  (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 - CLARIFICATIONS ON TAX COMPLIANCE FOR UNDISCLOSED FOREIGN INCOME AND ASSETS

CIRCULAR NO.13 OF 2015 [F.NO.142/18/2015-TPL], DATED 6-7-2015

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (hereinafter referred to as 'the Act') has introduced a tax compliance provision under Chapter VI of the Act. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015 (hereinafter referred to as 'the Rules') have been notified. In regard to the scheme queries have been received from the public about the scope of the scheme and the procedure to be followed. The Board has considered the same and decided to clarify the points raised by issue of a circular in the form of questions and answers as follows.—

Question No.1:	If firm has undisclosed foreign assets, can the partner file declaration in respect of such asset?
Answer:	The declaration can be made by the firm which shall be signed by the person specified in sub-section (2) of section 62 of the Act. The partner cannot make a declaration in his name. However, the partner may file a declaration in respect of an undisclosed asset held by him.
Question No.2:	Where a company has undisclosed foreign assets, can it file a declaration under Chapter VI of the Act? If yes, then whether immunity would be granted to Directors of the company?
Answer:	Yes, the company can file a declaration under Chapter VI of the Act. The Directors of the company shall not be liable for any offence under the Income-tax Act, Wealth-tax Act, FEMA, Companies Act and the Customs Act in respect of declaration made in the name of the company.

Section 37(1) : Advocate Fees for bail of Driver not allowed

Fee paid to advocate for seeking bail of driver of assessee was disallowable

IN THE ITAT DELHI BENCH 'H'

T And T Motors Ltd.

v.

Additional Commissioner of Income-tax*

R.S. SYAL, ACCOUNTANT MEMBER
AND A.T. VARKEY, JUDICIAL MEMBER

IT APPEAL NO. 6490 (DELHI) OF 2012
[ASSESSMENT YEAR 2009-10]

JANUARY  7, 2015 

Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of (Advocate fees)- Assessment year 2009-10 - Assessee-company claimed deduction on account of legal fees supported by a bill of advocate which showed that assessee's driver was taken into custody pursuant to an accident and amount was paid as advocate fee for seeking his bail - Assessing Officer disallowed said claim - Whether since Explanation to section 37(1) prohibits deduction of expenditure incurred for a purpose which was an offence or prohibited by law, amount paid as advocate fee was to be disallowed - Held, yes [Para 10] [In favour of revenue]

TDS on Provision of Expenses

TDS obligation arises while making provision at the time of quarterly closure and not when actual exp. is booked

N THE ITAT BANGALORE BENCH 'A'

IBM India (P.) Ltd.

v.

Income-tax Officer (TDS) LTU, Bangalore*

N.V. VASUDEVAN, JUDICIAL MEMBER
AND JASON P. BOAZ, ACCOUNTANT MEMBER

IT APPEAL NOS. 749 TO 752, 1588 TO 1591 (BANG.) OF 2012

MAY  14, 2015 

Section 201, read with Sections 4, 40(a)(i) and 40(a)(ia), of the Income-tax Act, 1961 - Deduction of tax at source - Consequence of failure to deductor pay (provision in books of account) - Assessment years 2006-07 to 2009-10 - Whether it is clear from statutory provisions of TDS that liability to deduct tax at source exists when amount in question is credited to a 'suspense account' or any other account by whatever name called, which will also include a 'provision' created in books of account - Held, yes - Whether assessee having admitted its default under section 40(a)(i) and section 40(a)(ia) could not in proceedings under section 201(1)/1(A) argue no default under chapter XVII-B - Held, yes - Whether statutory provisions of withholding tax clearly envisage deduction of tax at source de hors charge under section 4(1), hence assessee was liable to deduct tax on provision for expenses created in books of account - Held, yes [Paras 27, 30 & 32] [Partly in favour of revenue]

Circulars and Notifications: CBDT Circular No. 3 of 2010, dated 2-3-2010; CBDT circular No. 550, dated 1-1-1990

FACTS

Which Income Tax Return Form to E-File

Which Income Tax Return Form to E-File There are about 9 types of ITR or income tax return forms. Let's understand in detail who should file which income tax form. ITR-1: Amongst the salaried this is one of the most widely used income tax return forms. This form is applicable to taxpayers who have income from salary and own one house property. If you own more than one house property, you are not eligible to fill this form and you may file ITR-2A or ITR-2. If you have 'loss' brought forward from previous years, this form is not applicable. This form is not applicable if your income from other sources includes winning from lottery and income from race horses. Similarly, those who earn agricultural income exceeding Rs 5,000 cannot file their return in this form. They may have to file ITR-2 or ITR-2A in these cases.