The CBDT's high-level committee will scrutinise all cases arising out of the retrospective tax amendment within of 60 days of receiving them from the Assessing Officer
The Central Board of Direct Taxes (CBDT) on Thursday set up a high-level committee to scrutinise all Income Tax (I-T) cases arising out of the retrospective tax amendment.
The four-member committee will be headed by the Joint Secretary of the Foreign Tax and Tax Research-I unit of the CBDT. It will decide on such cases within 60 days of receiving them from the Assessing Officer.
It will be incumbent upon the AO to approach the Committee when faced with an I-T case that is for the period before April 2012.
The other members on the panel include Joint Secretary (Tax Planning and Legislation-I), the Commissioner of Income Tax Appeals and the Director (Foreign Tax and Tax Research-I), who will also be the Secretary of the committee.
Finance Minister Arun Jaitley had announced this new mechanism in his Budget 2014-15 speech on 10th July.
According to the terms of reference for the new committee, it would, on receipt of the reference from the Assessing Officer examine the proposed action of the Assessing Officer and after providing an opportunity to the assessee, take a decision on the proposed action.
In a notification, CBDT said: “The committee shall convey its decision in writing to the Assessing Officer with a copy to the Principal Commissioner or the Commissioner concerned and the assessee.”
“The committee shall endeavour to decide the reference within 60 days of its receipt by the Secretary of the committee. However, the committee shall have due regard to any limitation period involved in the proposed action, ” CBDT added.
An AO “shall seek prior approval” of the committee when faced with a situation that any income is deemed to accrue or arise in India before April 2012 through transfer of a capital asset situated in India following the amendments introduced with retrospective effect, the notification from CBDT said.
CBI is raiding the premises of former Assam minister and legislator Hemant B Sharma
The Central Bureau of Investigation (CBI) is searching seven locations in Kolkata, 12 in Guwahati, two in Dhubri, Assam and one in Mumbai in relation to the multi-crore Saradha scam, an official said.
CBI is raiding the premises of former Assam minister and legislator Hemant B Sharma, Anjan Dutta, MLA from Assam, former IPS officer Shankar Baruah and singer Sadananda Gogoi.
In Kolkata, the agency is searching Bapi Karim, a former personal assistant to Bengal minister Asif Khan, Sandhir Agarwal and Sajjan Agarwal and former IPS officer Deben Biswas. The agency has already arrested Sandhir Agarwal.
Kingfisher Airlines has gone to Court in Kolkata and Delhi to protect its reputation from being declared a wilful defaulter by its lender banks
The Delhi High Court today allowed Kingfisher Airlines legal representation before a committee of PNB that will decide whether Kingfisher should be declared a wilful defaulter or not. The court ordered PNB to supply to Kingfisher within one week any documents that the bank would rely upon to decide the question of wilful default. To ensure that the proceedings are not delayed, the court has limited the oral arguments that Kingfisher may offer during the hearing to six hours.
Justice Vibhu Bakhru said that since the committee could come to “an adverse decision that will be highly prejudicial to the interests of the petitioner (Kingfisher)”, legal representation could not be denied.
On 21 August 2014 a notice issued by PNB (Punjab National Bank) said it had wilfully defaulted on loans amounting to Rs770 crore.
Meanwhile, the Kolkata High Court has not yet given a ruling on Kingfisher with respect to being declared a wilful defaulter by UBI. As Kingfisher has moved court, the bank is waiting. But the bank has written to the SEBI that the Mallya group seems to have money for acquisitions even if it is not in a position to repay its loans amounting to Rs400 crore.
UBI has alerted SEBI that it had identified the airline as a 'wilful defaulter'. The bank has requested SEBI to reconsider its approval to the Mallya-Poddar open offer for additional stake in the fertiliser company, Mangalore Chemicals and Fertilizers.
According to the Reserve Bank of India (RBI) guidelines, a wilful default happens when an entity does not repay its dues despite having the capacity to pay and does not use the borrowed money for the purpose a loan was availed of. For instance, if a borrower uses short-term working capital funds for long-term purposes or deploys the borrowed money for creation of assets other than those for which the loan was sanctioned, it is interpreted as diversion of funds and the borrower is classified as a 'wilful defaulter'.