MM TAX CLUB

Department of Revenue

Central Board of Direct Taxes

Circular No. 2/2021 dated 28th December,2021

One-time relaxation for verification of all income tax-returns e-filed for the Assessment Year 2020-21 which are pending for verification and processing of such returns –

1. In respect of an Income-tax Return (lTR) which is filed electronically without a digital signature, the taxpayer is required to verify it using anyone of the following modes within the time limit of 120 days from date of uploading the ITR:

i               Through Aadhaar OTP

ii              By logging into e-filing account through net banking

iii             EVC through Bank Account Number

iv             EVC through Demat Account Number

v              EVC through Bank ATM

vi             By sending a duly signed physical copy of ITR-V through post to the CPC, Bengaluru

2. In this regard, it has been brought to the notice of Central Board of Direct Taxes ('Board') that large number of electronically filed ITRs for the Assessment Year 2020- 21 still remain pending with the Income-tax Department for want of receipt of a valid ITR-V Form at CPC, Bengaluru or pending e-Verification from the taxpayers concerned. In law, consequences of failure to verify the ITR within the time allowed is significant as such an ITR is/can be declared non-est. Thereafter, the consequences for non-filing an ITR, as specified in the Income-tax Act,1961 ('the Act') follow.

3. In this context, it has been decided by the Board to provide one-time relaxation for submission of ITR-V/e-Verification for resolving the grievances of the taxpayers associated with non-verification of ITRs for the Assessment Year 2020-21 and to regularize such ITRs which have either become non-est or have remained pending with Income-tax Department for want of receipt of respective ITR-V Form or pending e-Verification. Therefore, in respect of all TRs for Assessment Year 2020-21 which were uploaded electronically by the taxpayers within the time allowed under section 139 of the Act and which have remained incomplete due to non submission of ITR-V Form or pending e-Verification, the Board , in exercise of its powers under section 119(2)(a) of the Act, hereby permits verification of such returns either by sending a duly signed physical copy of ITR-V to CPC, Bengaluru through speed post or through EVC/OTP modes as listed in para 1 above. Such verification process must be completed by 28.02.2022.

4. This relaxation shall not apply in those cases, where during the intervening period, Income-tax Department has already taken recourse to any other measure as specified in the Act for ensuring filing of tax return by the taxpayer concerned after declaring the return as non-est.

5. Further, Board also relaxes the time-frame for issuing the intimation as provided in second proviso to sub-section (1) of Section 143 of the Act and directs that such returns shall be processed by 30.06.2022 and intimation of processing of such returns shall be sent to the taxpayer concerned as per the laid down procedure. In refund cases, while determining the interest, provision of section 244A (2) of the Act would apply. It is clarified that this relaxation would be applicable to all such returns which are verified during the extended period.

6. In case the taxpayer concerned does not get her/his return regularized by furnishing a valid verification (either ITR-V or EVC/OTP) by 28.02.2022, necessary consequences as provided in law for non-filing the return may follow

Search operations in related premises continue with recovery of Rs 17 crore, 64 kg gold and 600 kg sandalwood oil worth Rs 6 crore

The Ahmedabad unit of Directorate General of GST Intelligence (DGGI) on 22.12.2021 initiated search operations in Kanpur at the factory premises of manufacturers of Shikhar brand Pan Masala and Tobacco products, the office/Godowns of M/s Ganpati Road Carriers, Transport Nagar, Kanpur, and the residential/factory premises of M/s Odochem Industries, suppliers of perfumery compounds, at Kanpur and Kannauj.

After intercepting 4 trucks operated by M/s Ganpati Road Carriers, carrying pan masala and tobacco of said brand cleared without payment of GST, the officers tallied the actual stock available in the factory with the stock recorded in the books and found shortage of raw materials and finished products. This further corroborated that the manufacturer was indulging in clandestine removal of goods with the help of transporter who used to issue fake invoices to manage the transportation of said goods. The officers have also seized more than 200 such fake invoices. The manufacturers of Shikhar brand of pan masala/tobacco products have admitted and deposited an amount of Rs 3.09 crore towards their tax liability.

The search proceeding which was initiated at the residential premises of the partners of M/s Odochem Industries located at 143, Anadpuri, Kanpur on 22.12.2021 has since been concluded. The total amount of unaccounted cash recovered and seized from this premises is Rs. 177.45 crore. This is the biggest ever seizure of cash by the CBIC officials. The documents seized from the premises are under scrutiny.

Further, the DGGI officers have also searched the residential/factory premises of M/s Odochem Industries at Kannauj which is in progress. During the searches at Kannauj, the officers have been able to recover an amount of about Rs 17 crore in cash, which is presently being counted by the SBI officials. In addition, recovery of approximately 23 kg of gold and huge unaccounted raw materials used in manufacture of perfumery compounds, including more than 600 kg of sandalwood oil hidden in an underground storage, having a market value of about Rs 6 crore, have been made. The search proceeding at Kannauj is likely to continue till evening.

Since the gold so recovered is having foreign markings, Directorate of Revenue Intelligence (DRI) is being roped in for necessary investigations.

Meanwhile, on the basis of evidence collected during investigations so far, Shri Peeyush Jain, Partner of M/s Odochem Industries, Kannauj was interrogated by the DGGI officers. His statement has been recorded on 25/26.12.2021 under section 70 of the Act wherein Shri Jain has accepted that the cash recovered from the residential premises is related to sale of goods without payment of GST. In view of the overwhelming evidences available on record indicating large scale evasion of GST by M/s Odochem Industries, Kannauj, Shri Peeyush Jain has been arrested on 26.12.2021 for commission of offences prescribed under section 132 of the CGST Act and has been produced before the Competent Court on 27.12.20221.

The evidence collected during the searches conducted in last 5 days is being investigated thoroughly to unravel the tax evasion.

The link to press release of the earlier search operation:

RBL bank share price slipped more than 20% on Monday, after bank said on Saturday in press release its MD & CEO Vishwavir Ahuja gone on medical leave with immediate effect.

The bank said in its press note that it has strong financial position and liquidity, the bank has appointed Mr. Rajeev Ahuja (existing Executive Director of the Bank) as the Interim Managing Director & CEO of the Bank subject to regulatory and other approvals. And The RBI has full faith with their current management.

The Central Board of Indirect Taxes and Customs vide Notification no. 38/2021 – Central Tax dated 21st December, 2021 has notified provision of CGST (Eighth Amendment) Rules 202 1.

Central Goods and Services Tax (Eighth Amendment) Rules, 2021 was proposed vide notification number 35/2021 – Central Tax dated 24th September, 2021. Wherein provision of sub-rule (2), sub-rule (3), clause (i) of sub-rule (6) and sub-rule (7) of rule 2 of the said rules, shall come into force with effect from 1st day of January, 2022.

Provisions of eighth amendment rules are presented hereunder;

1.  Short title and commencement. –

(1) These rules may be called the Central Goods and Services Tax (Eighth Amendment) Rules, 2021.

(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.

2.  In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), —

(1) In rule 10A of the said rules, with effect from the date as may be notified, -

(a) after the words “details of bank account”, the words “which is in name of the registered person and obtained on Permanent Account Number of the registered person” shall be inserted;

(b) the following proviso shall be inserted, namely:- “Provided that in case of a proprietorship concern, the Permanent Account Number of the proprietor shall also be linked with the Aadhaar number of the proprietor.”;

(2) After rule 10A of the said rules, with effect from the date as may be notified, the following rule shall be inserted, namely: -

“10B. Aadhaar authentication for registered person .— The registered person, other than a person notified under sub-section (6D) of section 25, who has been issued a certificate of registration under rule 10 shall, undergo authentication of the Aadhaar number of the proprietor, in the case of proprietorship firm, or of any partner, in the case of a partnership firm, or of the karta, in the case of a Hindu undivided family, or of the Managing Director or any whole time Director, in the case of a company, or of any of the Members of the Managing Committee of an Association of persons or body of individuals or a Society, or of the Trustee in the Board of Trustees, in the case of a Trust and of the authorized signatory, in order to be eligible for the purposes as specified in column (2) of the Table below:

                Provided that if Aadhaar number has not been assigned to the person required to undergo authentication of the Aadhaar number, such person shall furnish the following identification documents, namely: –

(a) her/his Aadhaar Enrolment ID slip; and

(b) (i) Bank passbook with photograph; or

(ii) Voter identity card issued by the Election Commission of India; or

(iii) Passport; or

(iv) Driving license issued by the Licensing Authority under the Motor Vehicles Act, 1988 (59 of 1988):

Provided further that such person shall undergo the authentication of Aadhaar number within a period of thirty days of the allotment of the Aadhaar number.”;

(3) In rule 23 of the said rules, in sub-rule (1), with effect from the date as may be notified, after the words “on his own motion, may”, the words, figures and letter “, subject to the provisions of rule 10B,” shall be inserted;

(4) In rule 45 of the said rules, in sub-rule (3), with effect from the 1st day of October, 2021, -

(i) for the words “during a quarter”, the words “during a specified period” shall be substituted;

(ii) for the words “the said quarter”, the words “the said period” shall be substituted;

(iii) after the proviso, the following explanation shall be inserted, namely: -

“Explanation. - For the purposes of this sub-rule, the expression “specified period” shall mean.-

1. the period of six consecutive months commencing on the 1st day of April and the 1st day of October in respect of a principal whose aggregate turnover during the immediately preceding financial year exceeds five crore rupees; and
2. a financial year in any other case.”;

(5) In rule 59 of the said rules, in sub-rule (6), with effect from the 1st day of January, 2022, -

(i) in clause (a), for the words “for preceding two months”, the words “for the preceding month” shall be substituted;

(ii) clause (c) shall be omitted;

(6) In rule 89 of the said rules, -

(i) in sub-rule (1), with effect from the date as may be notified, after the words “may file”, the words “, subject to the provisions of rule 10B,” shall be inserted;

(ii) After sub-rule (1), the following sub-rule shall be inserted, namely:-

“(1A) Any person, claiming refund under section 77 of the Act of any tax paid by him, in respect of a transaction considered by him to be an intra-State supply, which is subsequently held to be an inter-State supply, may, before the expiry of a period of two years from the date of payment of the tax on the inter-State supply, file an application electronically in FORM GST RFD-01 through the common portal, either directly or through a Facilitation Centre notified by the Commissioner:

                Provided that the said application may, as regard to any payment of tax on inter-State supply before coming into force of this sub-rule, be filed before the expiry of a period of two years from the date on which this sub-rule comes into force.”;

(7) In rule 96 of the said rules, in sub-rule (1), after clause (b), with effect from the date as may be notified, the following clause shall be inserted, namely:-

“(c) the applicant has undergone Aadhaar authentication in the manner provided in rule 10B;”;

(8) After rule 96B of the said rules, with effect from the date as may be notified, the following rule shall be inserted, namely:-

“96C. Bank Account for credit of refund.- For the purposes of sub-rule (3) of rule 91, sub-rule (4) of rule 92 and rule 94, “bank account” shall mean such bank account of the applicant which is in the name of applicant and obtained on his Permanent Account Number:

Provided that in case of a proprietorship concern, the Permanent Account Number of the proprietor shall also be linked with the Aadhaar number of the proprietor.”;

Office of the Development Commissioner, MEPZ Special Economic Zone, Chennai vide circular no. 241/DCC/2021-22 MEPZ SEZ dated 20-12-2021 approved request for extension in work from home facilities for the SEZ units.

In view of the Covid-19 Pandemic and the consequent lockdown imposed, the Department of Commerce, Ministry of Commerce & Industry, Government of India vide Letter No.K.43013(12)/1/2021-SEZ dated 6th May 2021 had asked the Development Commissioners to consider and approve requests from the SEZ Units for extension of Work from Home (WFH) facility, in a liberal manner, till such time the National Disaster Management Authority or the state Governments continue to issue orders governing the Covid-19 Pandemic Management.

In order to obviate the need for each of such SEZ Units applying for such extension of WFH facility, and as a measure of Ease of Doing Business, it was decided to grant extension of the WFH facility up to 31.12.2021, under proviso to Rule 43 of SEZ Rules 2006, to all such SEZ Units under MEPZ SEZ which prefer to avail the facility of WFH.

As a continuing measure of Ease of Doing Business, it has been decided to extend the WFH facility upto 31.03.2022.