A clarificatory Circular No. 01/2013, dated 17-1-2013 (hereinafter referred to as ‘Circular’) was issued by CBDT to address various contentious issues leading to tax disputes in cases of entities engaged in export of computer software which are availing tax-benefits under sections 10A, 10AA and 10B of the Income-tax Act, 1961.
Uniform List of Services To Be Followed in SEZs – Representations have been received for inclusion of more services in the list of default authorised services. The matter was considered during the DC meeting held on 7th November, 2013 and it has been decided that following two more services may be included in the list of default authorised services:-
It is a matter of concern that despite a comprehensive procedure prescribed through the Instruction for action at different stages of Audit Objections, settlement track record is unsatisfactory and remedial action is delayed.
Reference is invited to Board’s Instruction No. 3 of 2007 dated 17.4.2007 on the New Internal Audit System (hereinafter Instruction). The slow progress of work relating to settlement of Internal Audit Objections and also quality & coverage of internal audit have been a matter of serious concern.
Instruction No. F.No. 603/01/2011-DBK The Audit Report highlighted aspects on the compliance side which Internal Audit did not notice. A better performance by Internal Audit would have enabled remedial actions to be taken earlier. Board directs that Commissioners should appropriately strengthen their Internal Audit wings to achieve desired diligence levels and a significantly improved performance in areas such as payment of re-export drawback, cases of manual processing of drawback and the determination/fixation of brand rates.
Representations have been received from Trade bodies that field formations are not promptly sanctioning the rebate claims due to them. A suggestion has been made that the time limit prescribed in Section 11BB of the Central Excise Act, 1944 may be reduced from 3 months to 30 days.
The existing procedure for monitoring cases of ‘Non-Filers of IT Returns’ as identified by Director General of Income, Tax (System) has been examined by the Board.
(j) Cases where registration u/s 12 AA of the IT Act has not been granted or has been cancelled by the CIT/DIT and the assessee has been found claiming tax-exemption under section 11 of the IT Act. However, the cases where such order of CIT/DIT has been reversed/set-aside in appellate proceedings will not pe picked up for scrutiny under this clause.
Attention is invited to Board Circular No. 14/2009 – Cus dated 06.05.2009 which provides that Customs field formations should verify whether the export goods packed with raw or solid wood packaging material comply with the International Standards
INSTRUCTION NO. 12/2013 – DATED 9-9-2013 – Hon’ble Delhi High Court vide its judgment in case Court On Its Own Motion v. UOI in W.P.(C) 2659/2012, dated 14.3.2013 has issued seven Mandamus for action by the Income Tax Department. One Mandamus is on compliance of section 245 of the Income-tax Act, 1961.
