Direct Taxes Updates- February 2020

A. Summary of Income Tax Notifications and Circulars for February 2020

1. Notification No. 11/2020 dated 13/02/2020– CBDT notifies (Rule 114AAA) prescribing that PAN will become inoperative if a person, who has been allotted PAN as on the 1st day of July, 2017 and is required to intimate his Aadhaar number under section 139AA(2), has failed to intimate the same on or before the 31st day of March, 2020.

2. Notification No. 10/2020 dated 12/02/2020

Forms (Form 10IC and Form 10ID) for exercise of lower Income Tax Rate option (Section 115 BAA- new tax rate for domestic companies & 115 BAB for new manufacturing companies for FY 19-20 onwards).

3. Notification 11/2020 dated 07/02/2020

Procedure of PAN allotment through Common Application Form (CAF) along with registration of Foreign Portfolio Investors (FPIs) with SEBI under Department of Economic Affairs and KYC for opening Bank and Demat Account has been notified.

4. Circular No. 06/2020 dated 19/02/2020

Authority for Con-donation of delay u/s 119(2)(b) of the IT Act, 1961 in filing of Return of Income for AY 2016-17, 2017-18 and 2018-19 and Form No. 9A and Form No. 10

5. ITBA- Assessment – Demand Adjustment by AO u/s 245 Instruction No.13 dated 19/02/2020

Functionality for Demand Adjustment u/s 245 by AO in ITBA (Income Tax Business Application) has been issued

6. ITBA-ITR Processing Instruction No – 10 dated 18/02/2020

Steps to clear the pendency of processing of Paper Returns or E-returns transferred by CPC-ITR due to verification of relief claimed u/s 90/90A or 91 of the Income Tax Act, 1961

7. F.No. 225/297/2019/ITA.II dated 10/02/2020

CBDT notifies that the Principal Director General of Income-tax (Systems), New Delhi for furnishing information respecting assessees to Securities and Exchange Board of India (‘SEBI’)

8. Press release dated 04/02/2020

No TDS by Mutual funds on income in the nature of Capital Gains

B. Income Tax Compliance calendar – March 2020

Date	Things to remember
2nd March	Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of January, 2020. Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of January, 2020 Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of January, 2020
7th March	Due date for deposit of Tax deducted/collected for the month of February, 2020. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan
15th March	Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of February, 2020 has been paid without the production of a Challan Fourth installment of advance tax for the assessment year 2020-21 Due date for payment of whole amount of advance tax in respect of assessment year 2020-21 for assessee covered under presumptive scheme of Section 44AD/ 44ADA
17th March	Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of January, 2020 Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of January, 2020 Due date for issue of TDS Certificate for tax deducted under Section 194M in the month of January, 2020
30th March	Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of February, 2020 Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of February, 2020 Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of February, 2020
31st March	Due date for linking of Aadhaar number with PAN Country-By-Country Report in Form No. 3CEAD for the previous year 2018-19 by a parent entity or the alternate reporting entity, resident in India, in respect of the international group of which it is a constituent of such group Country-By-Country Report in Form No. 3CEAD for a reporting accounting year (assuming reporting accounting year is April 1, 2018 to March 31, 2019) by a constituent entity, resident in India, in respect of the international group of which it is a constituent if the parent entity is not obliged to file report u/s 286(2) or the parent entity is resident of a country with which India does not have an agreement for exchange of the report etc.

C. Summary of Important Income Tax Judgments – February 2020.

1. Nokia India Pvt. Ltd. Vs DCIT (ITAT Delhi)

No disallowance for non-deduction of TDS u/s 194H and 194J in absence of principal- agent relationship & Technical Services

2. Lucknow Development Authority Vs ACIT (ITAT Lucknow)

ITAT stays tax demand  because the assesse has a prima facie case in its favour

3. PCIT Vs Vodafone Shared Services Ltd. (Gujarat High Court)

Interest on borrowing for acquisition of Capital Assets allowable u/s 36(1)(iii)

4. A.K. Industries Vs ACIT (ITAT Kolkata)

Disallowance u/s 40 (a)(ia) not applicable to Short Deduction of TDS

5. DCIT Vs Magarpatta Township Development and Construction Company Limited (ITAT Pune)

License fees received for use of IT parks  assessable as Business Income

6. Tariqrashid M. Munshi Vs ITO (ITAT Ahmedabad)

ITAT held that assessee deserve to be penalized for non-appearance before the CIT (A) and Assessing Officer and imposes penalty of Rs. 5000/- upon the assessee and instructed him to deposit the same in the Income Tax Office before the commencement of his proceedings before the AO.

7. Omega Corrugators Pvt. Ltd Vs ITO (ITAT Mumbai)

No penalty under section 271(1)(c ) for genuine omissions in Income Tax Returns