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To clear the air on retrospective applicability of the stringent anti- avoidance GAAR rule, the I- T department has said the same will not apply to income from transfer of investments before April 1, 2017. General Anti- Avoidance Rule ( GAAR), which will kick in from April 1 next year, contains provisions to prospectively tax overseas deals involving local assets and are aimed at minimising tax avoidance and evasion by entities based in tax havens. The amendments carried out in the Income Tax Rules state that Rule 10U( 1)( d) has been amended to provide that GAAR will not apply to income earned/ received by any person from transfer of investments made before April 1, 2017. Earlier, this date was August 30, 2010. Further, Rule 10U( 2) has been amended to provide that GAAR will apply to any arrangement, irrespective of the date it has been entered into, if tax benefit is obtained on or after April 1, 2017. Earlier, this date was April 1, 2015. The industry has been demanding that G

www.caonline.in News... 1. Earning of profit from an incidental activity does not affect charitable status via {DIT vs M/s Lala Lajpatrai Memorial Trust (Bombay High Court)} 2. Demolition/Redevelopment not amounts to transfer, so no withdrawal of 54F via {Shri Dilip Manhar Parekh Vs The Dy. CIT} 3. No addition for mere non-reconciliation of Professional fees with AIR details via {CIT vs. Shri S. Ganesh} 4. Reopening invalid if AO records satisfaction in mechanical manner & without application of mind via {M/S Banke Bihari Properties Pvt. Ltd Vs ITO (ITAT New Delhi)} 5. No TDS on commission paid outside India for services received outside India by Non-Residents via {DCIT vs. M/s Sess Resources Ltd. (ITAT Panaji)}

www.caonline.in News... 1. Amendment in rule 114H of Income tax Rules, 1962-Circular-Dated: 22-6-2016. 2. Income tax (15th amendment) Rules, 2016 – Amendments in Due diligence requirement – Notificatiobn  no-48/2016-dated  20-6-  2016 3. No TDS under the Chapter XVII of the income-tax Act, 1961 on the payments of the nature specified in clause (23DA) of section 10 of  the said act received by any securitization trust as defined in clause (d) of the Explanation to section 115TC - 46/2016 - Dated 17-6-2016 - Income Tax vide Notification no. 46/2016. 4. Revenue could not deny sec. 80-IB relief once approval was granted by prescribed authority –HC (Gujarat). 5. Additional quota of 2 lakh MT for import of rough marble and travertine blocks to authorisation holders in terms of Notification      No. 11    dated 21/6/2016 - DGFT.

Finance minister Arun Jaitley on Wednesday said the income-tax department would take penal actions only against those wilful defaulters whose names have been made public by tax authorities. “The names of wilful tax defaulters have been published by the I-T department. There are about 63 names, subject to verification. These include persons who are not traceable. Action will be taken against them.” Jaitley also said it would be wrong to club the names of wilful defaulters with those against whom the tax department has disputes. The I-T department regularly comes out with a list of tax defaulters, with a view to ‘naming and shaming’ them. The list, which is posted on the department’s website, includes names of defaulting individuals or entities, their last known addresses, Permanent Account Number (PAN), amount of arrears, last-known source of income, and the assessment years for which they have not paid their tax dues. Hindustan Times New Delhi, 23th June 2016

CBDT has pulled up the Income Tax department for having an “unsatisfactory“ record of grievance redressal despite the subject being monitored by the government on a priority basis. Officials said Central Board of Direct Taxes (CBDT) Chairman Atulesh Jindal has written a terse letter to the supervising chiefs of the IT across the country asking them to immediately review taxpayer's complaint cases in their respective regions, ensure redressal and undertake “administrative action“ against erring officials in this regard. The Economic Times New Delhi, 23th March 2016

Tax tribunal gives reprieve to investors, says gains not bogus just because Sebi is probing irregularities in the segme nt Investors holding penny stocks have got a reprieve from the Income-Tax Tribunal. The body has ruled that gains from penny stocks cannot be termed as bogus just because the Securities and Exchange Board of India (Sebi) is probing into possible irregularities in these stocks. Recently, investors who have tried to claim the benefit of longterm capital gains from penny stocks, have come under the radar of tax officials. “If payment is by cheque and delivery of shares is taken, then long-term capital gains tax cannot be treated as bogus,“ the tribunal said. The tribunal's ruling was on a case where the assessee had shown sale proceeds of shares in the scrip Ramkrishna Fincap as a long-term capital gain and claimed exemption. Further, the assessee had claimed to have purchased this scrip at Rs. 3.12 per . 155.04 share in 2003 and sold it for ` per share in 20

Buoyed by a steady growth in collections from tax deducted at source (TDS), the Income Tax department now plans to undertake multiple steps to "augment" revenue from this category and minimise tax avoidance. The department plans to undertake meetings with various stakeholders like company deductors and chartered accountants to ensure that due taxes under this category are deposited accurately and on time. Business Standard New Delhi, 23th June 2016