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E-News Letter December 2015

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Chairman Speech

Chairman Pimpri Chinchwad Branch of WIRC of ICAI

CA. Prasadh Saraaf

It gives me immense pleasure to address you through this communiqué

since last one year. As all our members are busy to compile VAT Audit till

15th Jan 2016. I wish you all the best.

The branch has conducted various programmes for the members &

students. CPE Programme like Procedure & Practice on MVAT LAW,

Investor Awareness Programme for the members as well the general

public who real required the guidance before Investing. CPE Programme

like Internal Financial Controls, Subsidy Schemes, Professional Code of

Conduct & Ethics, Two Day workshop on Presentation skills for

Practicing CA’s members.

WICASA Committee had organised MVAT Workshop & Workshop on

Spoken English for students. Also Educational Visit with at Alandi to

know the education system of Warkhari sampadhaya.

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Table of Contents

Sr No

Particulars Page No

1 Chairman Communiqué 2

2 Index 3

3 Office Bearers 2015-16 4 4

5 IMPORTANT NOTIFICATION Circular/Events

5-8

6 Event 9-14

7 Details Of 7

8 Forthcoming Events 8

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MANAGING COMMITTEE MEMBERS

( Year 2015-16 )

CA.Prasadh Saraaf

Chairman

CA.Suhas Gardi

Vice Chairman

CA.Maheshwar Marathe

Secretary & Treasurer

CA.Baban Dangale

Immediate Past Chairman

CA.Manojkumar Agarwal

Past Chairman

CA.Kishor Gujar

Managing Committee

Member

CA.Santosh Sancheti

Managing Committee Member

CA.Pankaj Patni

Managing Committee Member

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Dec 2015 CBDT Clarifies Law On S. 271(1)(c) Penalty Where S. 115JB Book Profits Are More Than Normal Income

The CBDT has issued Circular No. 25/2015 dated 31.12.2015 pointing out that pursuant to the judgement of the Delhi High Court in Nalwa Sons Investment Ltd327 ITR 543 (Delhi) and the substitution of Explanation 4 of section 271 of the Act with prospective effect, it is now a settled position that prior to 1/4/2016, where the income tax payable on the total income as computed under the normal provisions of the Act is less than the tax payable on the book profits u/s 115JB of the Act, then penalty under 271(1)(c) of the Act is not attracted with reference to additions /disallowances made under normal provisions. The CBDT has clarified that in cases prior to 1.4.2016, if any adjustment is made in the income computed for the purpose of MAT, then the levy of penalty u/s 271(1)(c) of the Act, will depend on the nature of adjustment. The above settled position is to be followed in respect of section 115JC of the Act also. The CBDT has accordingly directed that no appeals may henceforth be filed on this ground and appeals already filed, if any, on this issue before various Courts/Tribunals may be withdrawn/not pressed upon

CBDT Issues Guidance Note For Implementation Of FATCA And CRS

The CBDT has issued a Guidance Note dated 31.12.2015 to explain the manner of ensuring compliance with the reporting requirements provided in Rules 114F to 114H and Form 61B of the Income-tax Rules, 1962 which deal with Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS)

Important Circulars/Notifications/Event CBDT Circular On Recording Of Satisfaction Note U/s 158BD/153C Of Income-tax Act The CBDT has issued Circular No. 24/2015 dated 31.12.2015 in which it has explained the law relating to recording of satisfaction note by the AO under sections 158BD/153C of the Income-tax Act. The CBDT has drawn attention to the verdict of the Supreme Court

in CIT vs. Calcutta Knitwears 362 ITR 673 (SC) in which the stages at which the satisfaction note has to be prepared have been set out. The CBDT has further clarified that even if the AO of the searched person and the “other person” is one and the same, then also he is required to record his satisfaction as has been held by the Courts. The CBDT has also directed that pending litigation with regard to recording of satisfaction note under section 158BD /153C should be withdrawn/not pressed if it does not meet the guidelines laid down by the Apex Court

CBDT Makes Electronic Filing Of Appeal To CIT(A) Mandatory

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The CBDT has issued a press release dated 30.12.2015 stating that as part of the endeavour of the Income tax Department to digitise various functions of the Department for providing efficient taxpayer services, electronic filing of appeal before CIT(Appeals) is being made mandatory for persons who are required to file the return of income electronically. It is

claimed that by this change “the burden of compliance on the taxpayers

in appellate proceedings will be significantly reduced“. CBDT Clarifies Important Issues On Scope Of Scrutiny In CASS Assessments

The CBDT has issued Instruction No. 20/2015 dated 29.12.2015 in which it has issued clarifications on several issues in order to facilitate the conduct of scrutiny assessments in cases selected through Computer Aided Scrutiny Selection (‘CASS’). The CBDT has also stated that as far as the returns selected for scrutiny through CASS-2015 are concerned, two type of cases have been selected for scrutiny in the current Financial Year – one is ‘Limited Scrutiny’ and other is Complete Scrutiny’. The assessees concerned have duly been intimated about their cases falling either in ‘Limited Scrutiny’ or ‘Complete Scrutiny’ through notices issued under section 143(2) of the Income-tax Act, 1961 (‘Act’). The procedure for handling ‘Limited Scrutiny’ cases has been explained in detail by the CBDT.

CBDT Frowns On Hardship To Taxpayers And Wastage Of Time By Issue Of Vague S. 143(2) Scrutiny Notices By AO The CBDT has issued Instruction No. 19/2015 dated 29.12.2015 stating that instances have come to the notice of the Board that in cases selected under scrutiny, while issuing the first notice, Assessing Officers do not convey the specific compliance requirements like production of accounts, furnishing of documents, information, evidences, submission of other requisite particulars etc. Since the taxpayers or their authorized representatives are required to comply with the statutory notice issued by the Assessing Officer, they remain clueless about the information required to be submitted and their appearance before the Assessing Officer does not serve any fruitful purpose except recording of their presence. This causes undue hardship to the taxpayers and unnecessary wastage of their time. The CBDT has directed that Assessing Officers should first go through the returns of income which have been selected for scrutiny and identify the issues which require examination. The initial notice issued under section 143(2) of the Income-tax Act, 1961 should itself be accompanied with the questionnaire containing details of specific documents/information/evidences etc. that are required to be furnished by the taxpayer in connection with scrutiny assessment proceeding in their respective case. CBDT Issues Draft Guiding Principles for determination of Place of Effective Management (POEM) of a Company

The CBDT has issued a press release dated 23.12.2015 stating that the Finance Act, 2015 has amended, with effect from 01.04.2016, the provisions of Income-tax Act relating to determination of residence of a company. In accordance with the amended provisions a company would be said to be resident in India in any previous year, if it is an Indian company or its Place of Effective Management (POEM) in that year is in India. It is further stated that the Explanatory Memorandum to the Finance Bill, 2015 stated that a set of

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guiding principles for determination of POEM would be issued for the benefit of the taxpayers as well as the tax administration Revenue Secretary Directs Mandatory Use Of Email To Facilitate Taxpayers’ Electronic Interface With Department

The CBDT has issued a letter dated 15.12.2015 stating that the Revenue Secretary has directed that henceforth any notice/letter/communication issued by any officer under Department of Revenue; including CBDT, its directorates and field formations; to the tax payers, members of public should invariably contain mention of email address and office phone numbers, of the officers signing such, communications/notice/letters for facilitating tax payers’ electronic interface with the Department. The CBDT has requested everyone to ensure that the above directions are strictly followed CBDT Enhances Monetary Limits For Filing Appeals By The Dept & Gives It Retrospective Effect The CBDT has, as a measure for reducing litigation, issued Circular 21/2015 dated 10.12.2015 increasing the monetary limits for filing of appeals by the department before the ITAT and High Courts and SLP before the Supreme Court. The notable aspect is that the CBDT has directed that the said instruction shall apply retrospectively to pending appeals and that all appeals below the specified tax limits should be withdrawn/ not pressed. However, appeals before the Supreme Court are to be governed by the limits operative at the time that the appeal was filed

CBDT Circular On TDS From Salaries During FY 2015-16 U/s 192 Of The Income-Tax Act, 1961

The CBDT has issued Circular No. 20/ 2015 dated 02.12.2015 in which it has explained the entire law relating to the obligation of employers to deduct income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2015-16 under section 192 of the Act and Income-tax Rules, 1962 CBDT Simplifies Procedure For Issue Of Form Nos. 15H And 15G For TDS Exemption

The CBDT has issued Notification No. 4 /2015 dated 1st of December 2015 by which it has simplified the procedure for Form No.15G & 15H under Section 197A of the Income-tax Act read with Rule 29C of the Income tax Rules

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Interactive meet with WIRC official Bearers in Pimpri Chinchwhad Branch on 24.12.2015

Discussion with Information Technology Training Student guiding about various

areas.

Felicitation Of WIRC Chairman_CA.Sunil Patodia

Event….

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Felicitation Of WIRC Vice Chairman_CA.Dilip Apte

Interractive Meet With WIRC Chiarman & VIce Chairman with Pimpri Chinchwad

Branch Member

Group Discussion of Students in GMCS-II Batch.

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IT LAB Students working on Practical Session.

Educational Tour of Students to Warkari Sanstha on 28 Dec’2015

Reading Room at Shraddha Heritage

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At Reading Room we had given Water Purifier facility for students.

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Seminar on “MVAT Procedure & Practice” for students on 11th Dec’15

CA.Saurabh Mahgoakar receiving floral welcome from WICASA Chairman CA.Suhas Gardi

CA.Saurabh Mahgoakar guiding student on MVAT.

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Half Day Seminar On Precaution Compliances Under Mvat Law On 19th December 2015

Speaker : Adv. Mahesh Bhagwat

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DETAILS OF INDUSTRY VISIT CONDUCTED DURING THE MONTH DEC. 2015

SR. NO.

DATE COMPANY NAME

Nature of Business NO OF STUDENTS

4 28-12-2015 Warkhari Sanstha Sikshna

Warkhari Sanstha Sikshna_Educational Vist at Alandi

30

DETAILS OF ORIENTATION BATCHES CONDUCTED DURING THE MONTH DEC. 2015

SR. NO.

Month START DATE END DATE BATCH NO NO OF STUDENTS

15 Dec-15 08-12-2015 16.12.2015 64 22

DETAILS OF GMCS I BATCHES CONDUCTED DURING THE MONTH DEC. 2015

SR.NO BATCH NO START DATE END DATE NO.OF STUDENT

1 ‘033 22-12-2015 09-01-2016 25

2 ‘034 29-12-2015 15-01-2016 17

DETAILS OF GMCS II BATCHES CONDUCTED DURING THE MONTH DEC. 2015

SR.NO BATCH NO START DATE END DATE NO.OF STUDENT

1 ‘017 04-12-2015 22-12-2015 14

DETAILS OF ITT BATCHES CONDUCTED DURING THE MONTH DEC. 2015

SR NO

Month START DATE

END DATE

BATCH NO.

NO OF STUDENTS

17 Dec'15 21.12.2015 20.01.2016 1215124 29

18 Dec'15 21.12.2015 20.01.2016 1215125 25

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