INSTRUCTION NO. 17/2008, DATED 26-11-2008 In a recent review of assessment of Banks carried out by C&AG, it has been observed that white computing the income of banks under the head ‘Profit and Gains of Business & Profession’, deductions of large amounts under different sections are being allowed by the Assessing Officers without proper verification, leading to substantial loss of revenue. It is, therefore, necessary that assessments in the cases of banks are completed with due care and after proper verification. In particular, deductions under the provisions referred to below should be allowed only after a thorough examination of the claim on facts and on law as per the provisions of the I.T. Act., 1961.
INSTRUCTION No. 16/2008 Under the revised procedure, inspections will involve an annual comprehensive inspection of the concerned office. The Inspecting Officer will examine and comment on the overall functioning of the office in the light of various Government Instructions in general and CBDT Instructions in particular. However, it will not be necessary to give comments on select assessment orders as part of inspection, as this will be done during Review of the assessments, instructions in respect of which are being issued separately.
INSTRUCTION No. 15/2008 Review will henceforth form an ongoing function of the supervisory officer for monitoring the quality of assessment work being done during the year by Assessing Officers under their supervisory control. The basic purpose of Reviews will remain unchanged viz. to ensure that all issues arising for consideration in the relevant assessment have been considered, the evidence required to examine these has been collected, rival arguments are analysed in the assessment order and a fair and balanced finding recorded.
Discover the latest MSME policy urging MSEs to include EM numbers on documents for better identification and compliance with income tax provisions.
While computing the income under the head ‘Profit and Gains of Business & Profession’ a scheduled bank (not being a bank incorporated by or under the laws of a foreign country) or a non-scheduled bank or a cooperate bank other than a primary agricultural credit society or a primary co-operative agricultural and rural bank is entitled to claim deduction of provision for bad debt of an amount not exceeding ten per-cent of the aggregate average advances made by the rural branches of such bank computed in the prescribed manner.
The CBDT, as a measure to reduce litigation, revised the monetary limits for filing appeals by the Department before Income Tax Appellate Tribunals, High Courts and Supreme Court. Accordingly, appeals would henceforth be filed in the ITAT only if the tax effect exceeded Rs.2,00,000, in the high court only if the tax effect exceeded Rs.4,00,000 and in the Supreme Court only if the tax effect exceeded Rs.10,00,000. However, it clarified that these monetary limits would not apply to writ matters.
Instruction/ Circular E.N.285/90/2008-IT(Inv.)/12 Short Title:- These guidelines would be called “The Guidelines for compounding of offences, 2008.” 1.2 Commencement and Application:- Subject to the conditions laid down in para 11 these guidelines will regulate the compounding of offences under Direct Tax laws with effect from 01st June 2008. 2. The offence under Chapter XXII of IT Act 1961 shall be classified as technical and non technical offences for the limited purpose of compounding of the offences.
Refund of service tax paid on taxable services used by exporters which are not input services but could be attributable to export activities – Regarding
INSTRUCTION NO-2/2008, Dated: February 22, 2008 A. The procedure will apply to assessees engaged in the business of manufacturing and/or trading of diamonds (referred to below as such business). B. If an assessee has shown a sum equal to or higher than 6% of his total turnover from such business as his income under the head ‘profits and gains of business or profession’ for a particular assessment year, the Assessing Officer shall accept his trading results.
INSTRUCTION NO. 1/2008, DATED 9-1-2008 Your attention is drawn to the guidelines for selection of cases under scrutiny for the F. Y. 2007-08 under which claim of refund of Rs. 5 lakhs or above is one of the criteria for compulsory scrutiny. Such cases were to be selected for scrutiny by CASS in all the networked stations and manually in non-networked stations.
