October 14, 2020 / Direct Tax

CORPORATE AND PROFESSIONAL UPDATE JANUARY 29,2016

SHARING A BRIEF WRITE UP – NO CLEAR GUIDELINES FOR SEIZURE OF JEWELLERY FOUND DURING SEARCH AND ITS ASSESSMENT THEREON :

Vide CBDT Instruction no. 1916 dated 11-05-1994, it has been clarified that no seizure should be made by the Search Party of the Jewellery and Ornaments found during the course of search proceedings under Section 132, where the same have been duly declared in the Wealth-tax Returns filed by the taxpayer or where such ornaments are within the prescribed limits of 100, 250 or 500 grams as stated in the said instruction.

Even where no seizure is made during the Search, following the spirit of the aforesaid instructions of the CBDT, in several cases, Assessing Officers, while finalizing the post-search assessments, make additions treating such Jewellery and Ornaments as undisclosed investment, on the ground that the taxpayer does not possess adequate evidence for acquisition of the same. The various courts have rendered divergent views on the same.

CBDT: OUTLINES PROCEDURE FOR ISSUING REFUNDS EXCEEDING RS. 5000; STIPULATES 30 DAYS FOR DEMAND-ADJUSTMENT U/S 245:-

CBDT lays down detailed procedure for issuing refunds exceeding Rs. 5000 where notice u/s 245 (for adjustment of refund against outstanding arrears) has been issued to taxpayer-assessee; Earlier this month, CBDT had directed prompt issuance of refund upto Rs. 5,000 without any adjustment of outstanding arrears; For cases not covered by earlier relaxation and where Sec 245 notice has been issued, CBDT now directs CPC to issue refund without any adjustment where assessee has contested the demand and no response is received from AO within 30 days; Likewise, when there is no response from assessee within 30 days, CBDT directs CPC to adjust demand against refund due and issue balance refund, if any.

AMENDMENT BY COMPANIES (INCORPORATION) AMENDMENT RULES, 2016-

Now there are three re-submission opportunities instead of Two Opportunities
Total period for re-submission of documents shall not exceed a total period of 30 days.
Rule 8(2)(b)(ii) omitted. Now the name shall be considered desirable even if it is not in consonance with the principle objects of the Company.
Rule 8(2)(b)(x) omitted. Now abbreviated name of company bases on the name of the promoter will be allowed.
Rule 8(2)(b)(xvii) and Rule 8(3) omitted. Now there is no need to show the scope , scale of activity in the name of Company while incorporation and change in name.
Rule 8(4) omitted. Now if the proposed name is based on the name of the relatives of the promoters / any other person, no need to obtain / attach NOC and proof of relationship of such person.

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