[Dated 4 May 2022 (Union of India v. Ashish Agarwal)]
- Hon'ble Supreme Court, in its judgment dated 4 May 2022, has adjudicated on the validity of the issue of reassessment notices issued by the AOs during the period beginning on 1 April 2021 and ending on 30 June 2021, within the time extended by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and various notifications issued thereunder.
- Taking into account the decision of the Hon'ble Supreme Court, it is clarified that the judgment applies to all cases where extended reassessment notices have been issued. This is irrespective of the fact whether such notices have been challenged or not.
- With respect to the operation of new
Section 149 of the Act, the judgment
has clarified as under:
- For AY 2013-14, AY 2014-15 and AY 2015-16: Fresh notice under Section 148 of the Act can be issued in these cases, with the approval of the specified authority, only if the case falls under clause (b) of sub-section (I) of Section 149 as amended by the Finance Act, 2021.
- AY 16-17, AY 17-18: Fresh notice under Section 148 can be issued in these cases, with the approval of the specified authority, under clause (a) of sub-section (1) of new Section 149 of the Act, since they are within the period of three years from the end of the relevant assessment year.
- The circular has also clarified the procedure required to be followed by the AOs to comply with the Supreme Court judgment.
CBDT introduces conditions for furnishing return of income by persons referred to in clause (B) of sub-section (1) of Section 139 in Rule 12AB
[Notification G.S.R. 307(E) [No. 37/2022/F.no.370142/01/2020-Tpl(Part1)]) dated 21 April 2022]
- In light of Section 139(1), read with Section 295 of ITA,1961, the CBDT had made the filing return of income mandatory for the following persons by way of insertion on rule 12AB.
- As per the rule, if any of the below
conditions are fulfilled, the person
will require the mandatory filing of a
- If his total sales, turnover, or gross receipts, as the case may be in the business, exceeds INR 6 million during the previous year; or
- If his total gross receipts in profession exceed INR 1 million during the previous year; or
- If the aggregate of TDS deducted and TCS collected during the previous year exceeds INR 25,000 or more (except in the case of Individual resident senior citizens, the limit is INR 50,000 or more);
- If his deposit in one or more savings bank accounts is INR 5 million or more during the previous year.
[Notification G.S.R. 325 (E) [No. 48/2022/F. No.370142/18/2022-TPL (Part1)] dated 29 April 2022]
The return of income to be furnished by any person eligible to file such return under the sub-section (8A) of Section 139, relating to the assessment year commencing on the 1 April 2020 and subsequent assessment years, shall be in the Form ITR-U and be verified in the manner indicated therein.
CBDT introduces new Rule 114BA for mandatory PAN card applications and Rule 114BB for quoting mandatory PAN or Aadhaar number
[Notification G.S.R. 346(E) [No. 53/2022/F.No. 370142/49/2020-TPL] dated 10 May 2022]
- The board has notified certain
persons, as mentioned below, who
he needs to apply for PAN under
- The person making a Cash deposit or deposits aggregating to INR 2 million or more in a financial year in one or more accounts of a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in Section 51 of that Act) or a Post Office.
- The person making Cash withdrawal or withdrawals aggregating to INR 2 million or more in a financial year in one or more accounts of a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in Section 51 of that Act) or a Post Office.
- The person opening a current account or cash credit account with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in Section 51 of that Act) or a Post Office."
- The board has also notified certain transactions in which the person liable to obtain the PAN is required to quote the PAN or Aadhaar number, as the case may be under rules 114BB.
CBIC clarifies the legal position on voluntary tax payments during search, inspection or investigation
[Instruction No. 01/2022-23 dated 25 May 2022]
- CBIC’s GST Investigation Wing has
issued a clarification/advisory to
eradicate instances of forced or
coerced ‘recovery’ by the tax officers
during the course of a search,
inspection or investigation. It has
been clarified, inter alia, that:
- Recovery of taxes not paid or short paid can be made under the provisions of Section 79 of the CGST Act, 2017 only after following the due legal process of issuing notice and subsequent confirmation of demand by the issuance of adjudication order.
- Therefore, there may not arise any situation where the tax officer must make “recovery” of the tax dues during the course of search, inspection, or investigation on account of any issue detected during such proceedings.
- However, there is no bar on the taxpayers for voluntarily making the payments on the basis of ascertainment of their liability before or at any stage of such proceedings. The tax officer should inform the taxpayers about the provisions of voluntary tax payments through DRC-03.
- In case a complaint from a taxpayer is received regarding the use of force or coercion for getting the amount deposited during search or inspection or investigation, the Pr. Chief Commissioners/Chief Commissioners, CGST Zones and Pr. Director General, DGGI should make a quick inquiry and take strict disciplinary action as per the law if any tax officers have found any wrongdoing.
[Memo No. 362/GST dated 19 May 2022]
The Excise and Tax Department of Haryana has decided to re-engineer internal processes to implement taxpayer-friendly measures in GST. Some of the decisions include:
- No officer/official shall enter the premises of any taxpayer without proper authorization and identity card. The tax inspectors shall not visit any premise except when they are conducting a physical inspection under Rule 25 of HGST Rules, 2017 or if they are part of a search, inspection or audit operation.
- No letter/communication should be sent from a field office without an ID that is generated from the BO web system. If, due to any unforeseen circumstances, the ID cannot be created on the BO web system, then the ID shall be the E-office number generated for the file.
The Department also apprised about instructions already issued requiring the Joint Commissioners of State Tax to review details of Input Tax Credit (ITC) blocked above INR 5 million and Deputy Commissioner of State Tax to review ITC blocked upto INR 5 million under Rule 86A of HGST Rules, 2017 in their respective districts and find out reasons thereof.
[Notification No. 02/2022-Central Excise dated 21 May 2022]
Road & Infrastructure Cess (additional excise duty) levied on petrol and diesel has been reduced to INR 5 per liter and INR 2 per liter respectively, w.e.f. 22 May 2022. Resultantly, the price of petrol has decreased by INR 9.5 per liter while that of diesel by INR 7 per liter.
[Notification No. 29/2022-Customs dated 21 May 2022]
Export duty has been hiked on specified items to boost the local supply of iron ore and steel intermediates. Accordingly, ‘iron ore pallets’ would now attract 45% export duty w.e.f. 22 May 2022, while exports of ‘pig iron’ and ‘flat-rolled products of iron or nonalloy steel, hot-rolled, not clad, plated or coated’ would be exigible to 15% duty.
[Excerpts from various sources]
The GST Council is considering the imposition of tax on cryptocurrencies. In this regard, the below measures are likely to be discussed in the upcoming GST Council meeting:
- 28% GST on services such as crypto mining along with sales and purchases;
- Introduction of 18% tax on reverse charge on virtual digital asset investments in foreign crypto platforms.
The proposed 28% GST would be in addition to the 30% income tax charged on earnings from crypto-asset transactions.