Updates:

1. Tax Returns for A.Y.s 2009-10 to 2014-15 filled electronically under time limit of Second 139 to be verified through ITR V form by 31.08.16. CBDT Circular no.13/2016.
2. MCA vide its General Circular No. 08/2016 dated 29.07.2016  has relaxed the payment of additional fees on filing of e-forms AOC-4, AOC-4 (XBRL), AOC-4 (CFS) and MGT-7 on or before 29th October, 2016, where the due date for holding the AGM is on or after 1st April, 2016.
3. Assam becomes the first state in the country to pass the GST Bill. 
4. Maternity Bill passed in Rajya  Sabha, now women to get 6 months off. Taxation Laws Amendment Bill, 2016 as introduced in Loksabha Bill no. 215 of 2016
5. SEBI revises format for publishing financial results in newspapers - Circular No. CIR/IMD/DF1/69/2016 - 10/08/2016

7 signs that you are a bad employee

Are you always late to work, spreading rumours about your colleagues, or shirking responsibilities? Chances are you are the bad seed at the workplace..Some employees are better than the others, but what if you are the problem worker in your office?
Being a terrible employee doesn't mean that you are lazy or unsuccessful professionally. You could also be a bad culture fit for the company if you don't get along with your boss, or are in the wrong industry. If you feel that you're not doing a good job, then find out the reason and take steps to rectify the situation. But before that, go through these seven signs to determine if you are the troublemaker.

1. Not punctual Forgetting important deadlines, barging into meetings late, or crawling into work at random hours -habitual tardiness creates bad impression. It implies that you do not respect others' time.

2. Excuses Don't rely on excuses to justify your incompetence. Take responsibility and work on your mistakes. When in doubt, ask for help and make sure your work is complete.

3. Bare minimum work You do enough to avoid getting fired and if your boss asks you to handle anything challenging, you react with exasperation. You might be ruining your reputation with this kind of work ethic.

4. Love to gossip Not all gossip is bad. However, when it comes to the petty, mean-spirited gab, stay away from the rumour mill -it'll only hurt your reputation.

5. Overconfidence If you think you are the smartest one at your workplace, get over yourself a bit. It's good to have confidence and you might be very intelligent in some areas, but no one wants to work with an arrogant colleague.

6. Looking for a way out If you are always watching the clock and can't wait for the day to end, if you shirk responsibility at every opportunity and don't care enough to push yourself, then you're simply not committed to your job.

7. Constant demands All jobs involve negotiations. You should pursue the best possible salary, benefits, hours, assignments. But if you're constantly making demands without giving any indication of the value that you bring to the company, then that could earn you a bad reputation.( Aug 17 2016 : The Economic Times (Mumbai)…businessinsider.in)

Important Jugdments

 

Dear Subscriber,

The following important judgements are available for download at itatonline.org:

Rayala Corporation Pvt. Ltd vs. ACIT (Supreme Court)

S. 28: Income from letting of property on rent by an assessee engaged in the business of letting is assessable as "business profits" u/s 28 and not as "Income from house property" u/s 22

The issue involved in these appeals is no more res integra as this Court has decided in the case of Chennai Properties and Investments Ltd. v. Commissioner of Income Tax [2015] 373 ITR 673 (SC) that if an assessee is having his house property and by way of business he is giving the property on rent and if he is receiving rent from the said property as his business income, the said income, even if in the nature of rent, should be treated as “Business Income” because the assessee is having a business of renting his property and the rent which he receives is in the nature of his business income 

United Breweries Limited vs. DCIT (Karnataka High Court)

S. 14A is applicable even where the motive of the assessee in acquiring the shares is to obtain controlling interest in a company and not to earn dividends

The question arose whether s. 14A applies to a case where the motive of the assessee is to acquire controlling interest in a company and not to earn dividends. The Tribunal followed the judgement of the Special Bench in ITO v. Daga Capital Management Pvt. Ltd (2009) 312 ITR (AT) 1 and held that section 14A is applicable even where the motive in acquiring the shares was to obtain controlling interest in the companies. The Tribunal upheld in principle the applicability of section 14A but remanded the matter to the Assessing Officer to ascertain from the facts of the case as to how much interest bearing borrowings was utilized to acquire shares in the companies 

Triad Resorts & Hotels P.Ltd vs. WTO (ITAT Bangalore)

Conduct of the Counsel in making selective reference to the Tribunal’s order in “very deceitful manner” is “highly deplorable”. Attempt to re-argue matter is “clear case of abuse of process of court” and is condemned “in no uncertain terms as it resulted in colossal waste of valuable time of this Tribunal”. Verdict in Dr. T.K. Dayalu (202 TM 531 (Kar) on taxability of development agreements is “not good law” in view of CIT vs. N. Vemanna Reddy (Kar)

We highly deplore the attempts of the petitioner to knock the doors of the Tribunal again in the guise of seeking rectification of order alleging that additional ground of appeal was not decided. As mentioned supra, the additional grounds have been specifically adjudicated and a specific finding had been rendered vide para.9 of the impugned order. Attempts made by the petitioners is nothing but clear case of abuse of process of court and in breach of principles of Res Judicata. We condemn this conduct of petitioner in no uncertain terms as it resulted in colossal waste of valuable time of this Tribunal 

Updates

SEBI

SEBI issued a Circular directing all commodity derivatives exchanges to conduct annual system audit of their trading members and monitor the same. SEBI said that the framework of system audit for trading members should cover audit process, selection norms for auditor and terms of reference for brokers. It further prescribed stock broker system audit framework and mandated commodity exchanges to ensure conduct of system audit of its members as per the prescribed framework and monitor the same. The circular would come into force from financial year 2016-17 onwards. SEBI clarified that for the F.Y. 2015-16, the brokers / trading members who have commenced their annual system audit, may follow existing annual system audit framework prescribed by exchanges, if any. However, stock brokers/ trading members who are yet to commence annual system audit should carry out their system audit as per the prescribed framework.

 

SEBI

SEBI has launched electronic mode for payment of penalties, disgorgement as well as settlement amounts.  SEBI has advised all payees to forward the details and confirmation of the payments so made, to the concerned dealing department of SEBI for their records. It has introduced such option to ease the payment of penalties, disgorgement amounts, settlement amounts, legal charges and recovery amounts as  currently, SEBI accepts payments only through Demand Drafts. 

Updates:

1. CBDT has notified Income Declaration Scheme, (Second Amendment) Rules, 2016 primarily to revise form 3 to specify details of payments made under the IDS 2016.
2. Where notice has not been given by the landlord for payment of rent due from the lessee under the Rent Act, there can be no eviction on ground of non-payment of rent by the lessee-company in liquidation. [Jabal C Lashkari and Others vs. Ol and others ( SC of india)].
3. CBEC has clarified that a freight forwarder, when acting as a principal  will not be liable to pay service tax when the destination of the goods is from a place in India to a place outside India, Circular No. 197/7/2016 -Service Tax dated 12 Aug. 2016.
4. Service Tax on alcoholic liquor manufacture on job work basis for human consumption valid. [ Carlsberg India Private Limited vs. Union of India & Ors. (Delhi HC)].
5. Exemption U/s. 54F despite delayed investment in Capital Gain Account Scheme. [ ACIT vs. Smt. Umayal Annamalai (ITAT Chennai)].

7 Habits for effective Finance Director

Here are the top 7 Habits for effective FDs:-

1. Competence
2. “Bean Growers” not “Bean Counters”
3. Build a team outside the business as well as in it
4. Manage up as well as down
5. Communication is everything
6. Passionate
7. Sharpening the Saw

Competence
There’s no getting away from it that an Accounting qualification and experience gained being a real life FD counts for a lot. FDs will be judged initially on how well they keep the score, solve financial problems in the business and direct management attention to the things that matter financially. Although it starts here, this is not where it stops! Other key habits are:-
Bean Growing, not Bean Counting
Highly effective FDs should come with Business, Commercial and Strategic skills that are super strong. Super financial skills are merely a pre-requisite.

Team Orientation
Teamwork is key for the modern day FD. As well as the ability to build their own team, highly effective FDs must be able to work effectively with the management team of the business and develop relationships outside the business to provide a strong network of support professionals.

People Skills
“Soft skills” are the hard skills these days. Managing down, across and most importantly up to MDs and business owners is key. Being a great FD and doing the FD “stuff” is not sufficient in adding real value to the business. People need to be brought with you.
Communication
The way you communicate and get your point across is critical to making a difference. Influence and persuasion skills are massively important to be highly effective.

Passionate
Yes “passionate”. High energy levels and having some fun is an important factor in effectiveness. What FDs do is a serious business, but it doesn’t have to be dour, and nobody likes a bore!

Sharpening the Saw

Keeping fresh and finding time to keep up to date is vital in this fast moving world. This relates to all the effectiveness habits not just technical skills!

FDs who want to make a difference to their businesses should work on these habits to become highly effective. Those that can master all these skills will find themselves in very high demand!

Government to unveil new I-T tool to check PAN transactions history

NEW DELHI: Government is set to unveil an ambitious PAN activity monitoring and analysis software tool that will enable Income Tax department to check transactions history of a person country-wide and help sleuths in effective tracking of black money trail.

The digital and smart platform is called the Income Tax Business Application-Permanent Account Number (ITBA-PAN) and is currently being put to final tests by a special team of tax sleuths and business software analysts at a facility in the national capital.

The new software tool will enable the taxman to view, in a chronological order, the entire "PAN life cycle summary" or to simply say transactions history of an individual or entity where a PAN number has been quoted, in any part of the country.

The project is expected to be activated by the end of this month by the Finance Ministry and will also enable the tax department and its two intermediary organisations--NSDL and UTIITSL-- to allocate a fresh PAN number and subsequently issue a new card in 48 hours flat as compared to the about 15 days time taken currently.

The operationalisation of the project assumes significance as Finance Minister Arun Jaitley had recently said that the government is at an "advanced stage in considering the requirement of furnishing PAN card details if cash transactions beyond a certain limit are undertaken." 

The department, in order to enhance its capabilities to better track large value transactions in the country, has brought the ITBA-PAN portal and has for the same has also closed down its "legacy" and the existing Assessee Information System (AIS) early this month which till now used to hold the PAN database. 

The new platform, according to an official proposal accessed by PTI, will also allow the taxman to view and capture various events of an assessee like "death, liquidation, dissolution, de-merger, merger, acquisition, fake PAN or amalgamation of PAN" in a specific or general case in an event of any investigation to be carried out in a case of black money or tax evasion. 

"The ambitious project will be rolled out soon and the I-T department has already migrated all the PAN data last week from the old system to the new one. With this project going operational, PAN will become a unique identifying database in the real sense all across the country," a senior official said today. 

The new tool will also allow the taxman to remotely identify duplicate or fake PANs in its system which has been troubling the tax investigators for a long time and was used by criminals to perpetrate black money operations within and outside the country.

The ITBA-PAN software will also allow a PAN holder to request for deletion or de-activation of his or her PAN and it will send an electronic and digitally signed "intimation letter" in this regard to the concerned assessee. 

The soon-to-be launched platform will also allow an entity to activate a wrongly deleted or de-activated PAN number.

In order to provide better services to taxpayers, the platform will allow for a smooth computer-based transfer of an individual's PAN number in case they are transferred or re-located from one place to the other. 

PAN is a ten-digit alphanumeric number issued in form of Aa laminated card by the Income Tax department.

It is also a national identification number of the taxpayer which has to be mandatorily quoted on the return of income and in all correspondences with the department.