CBDT instructs officers to verify cases of agriculture Income more than one crore in resposne a PIL matter pending before Hon'ble Patna High Court wherein concerns have been raised that a few assesses may be engaged in routing their unaccounted/illegal money in the garb of agricultural income thereby not only claiming exemptions on such income but also engaged in the money laundering activities. Also CBDT has advised that there may be data entry errors also resulting in income being reflected more than one crores. List of cases where agiculture income is more than one crore has been made available to officers. In Amritsar 26 cases have been reported [CBDT Letter dated 10-03-2016]

Analysis of Amendment relating to Presumptive Taxation of Business

Section 44AD widely affects the businesses in small sector. It was brought in its present shape by Finance Act 2009 wef AY 2011-12. It implies that legislature at that time thought it fit to take a year extra to have impact study of the section. However section 44AD has been amended by Finance Bill 2016, wef Financial year commencing from 01-04-2016, without providing enough time and space to thinks about its implications. This article is a humble attempt to look into and look through amendments proposed in section 44AD  as amended by Finance Bill 2016

CBDT circular favoring the assessee is binding on the department even if it is not as per legislative intent [Para 25] Vodafone Essar Mobile Services Ltd [2016] 67 taxmann.com 124 (Delhi) MARCH 9, 2016 As per section 201(3) before amendment by Finance Act 2014 it was provided wef AY 2010-11 that order for default in payment of TDS for financial years commencing on or before 01-04-2007 could be passed till 31-03-2011. However as per Circular 5/2010 of CBDT “…………….. To provide sufficient time for pending cases, it is proposed to provide that such proceedings for a financial year beginning from 1st April, 2007 and earlier years can be completed by the 31st March, 2011………………” . Held by Delhi High Court that since extended limitation period as per CBDT circular is applicable only to pending cases, hence for period before AY 2010-11, limitation period of 4 years as pronounced by Delhi High Court in NHK Japan following supreme court in Bhatinda District Co-op Mil Producers Union [2007] 9 RC 637; 11 SCC 363 is reasonable and shall apply accordingly