MM TAX CLUB

—In exercise of the powers conferred by clause (a) of Section 9 of the Prevention of Illicit Traffic Narcotic Drugs and Psychotropic Substances Act, 1988 (46 of 1988), and in supersession of the Notification of the Government of India, in the Ministry of Finance, Department of Revenue, G.S.R. No. 159(E) dated 1st March, 2023 except as respects things done or omitted to be done before such supersession, the Central Government hereby reconstitutes an Advisory Board for a period of one year, consisting of:-

(i) Hon'ble Mr. Justice Vibhu Bakhru - Chairperson

(ii) Hon'ble Mr. Justice Manoj Kumar Ohri - Member

(iii) Hon'ble Mr. Justice Dharmesh Sharma - Member

2. This notification shall come into force with effect from 23rd March, 2024.

F. No. 09/22/2023-DRT dated 5^th March, 2024

In exercise of the powers conferred by sub-section (3) of section 8 of the Recovery of Debts and Bankruptcy Act, 1993 (51 of 1993), the Central Government hereby authorises the Chairperson of the Debts Recovery Appellate Tribunal, Mumbai to discharge also the functions of the Chairperson of the Debts Recovery Appellate Tribunal, Delhi for deciding the appeals in the matter of ‘Ramesh Kumar & Anr. Vs SBI & Ors. (Appeal No. 5 of 2023 arising out of S.A. No. 19 of 2023 (DRT-I, Delhi) and its connected proceedings), Punjab National Bank vs M/s Sundar Nagar Integrated Rural Development Association (SIRDA), (Appeal No. 50 of 2021 arising out of O.A. No. 30/2020 (DRT-I, Chandigarh) and its connected proceedings), Punjab National Bank vs M/s Rishi Boys Hostel & Ors. (Appeal No. 51 of 2021 arising out of O.A. No. 26 of 2020 (DRT-I, Chandigarh) and its connected proceedings), Yogesh Jain & Ors. vs Central Bank of India & Ors. (Appeal No. 415 of 2018 arising out of O.A. No. 254 of 2010 (DRT-III, Delhi) and its connected proceedings) and Central Bank of India vs Yogesh Jain & Ors. (Appeal No. 499 of 2018 arising out of O.A. No. 254 of 2010 (DRT-III, Delhi) and its connected proceedings) in addition to his being the Chairperson of the Debts Recovery Appellate Tribunal, Mumbai.

— In exercise of the powers conferred by section 295 read with sections 44AB and 92E of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Fourth Amendment) Rules, 2024.

 (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in Appendix II,––

a) in Form No. 3CD,––

(i) in PART A, in clause 8a, for the figures and letters “115BAD”, the figures and letters “115BAD/115BAE” shall be substituted;

(ii) in PART B,––

A. in clause 12, for the figures and letters “44AD”, the figures and letters “44AD, 44ADA” shall be substituted;

B. in clause 18, for sub-clause (ca), the following sub-clauses shall be substituted, namely:––

“(ca) Adjustment made to the written down value––

 (i) under the proviso to sub-section (3) of section 115BAA (for assessment year 2020-21 only);

 (ii) under the first proviso to sub-section (3) of section 115BAC or the proviso to sub-section (3) of 115BAD (for assessment year 2021-22 only);

 (iii) under the second proviso to sub-section (3) of section 115BAC (for assessment year 2024-25 only).”;

C. in clause 19, in the table,––

(i) after the row with entry “35(2AB)”, the row with entry “35ABA” shall be inserted;

(ii) after the row with entry “35E”, the row with entry “any other relevant section” shall be inserted;

 D. in clause 21, ––

 (I) in sub-clause (a), in the table, under the column relating to ‘Nature’,––

(i) for the words “Expenditure by way of penalty or fine for violation of any law for the time being force”, the words and brackets “Expenditure for any purpose which is an offence or is prohibited by law or expenditure by way of penalty or fine for violation of any law (enacted in India or outside India)” shall be substituted;

(ii) after the row with the words “Expenditure by way of any other penalty or fine not covered above”, the row with the words “Expenditure incurred to compound an offence under any law for the time being in force, in India or outside India” shall be inserted;

(iii) for the words “Expenditure incurred for any purpose which is an offence or which is prohibited by law”, the words “Expenditure incurred to provide any benefit or perquisite, in whatever form, to a person, whether or not carrying on a business or exercising a profession, and acceptance of such benefit or perquisite by such person is in violation of any law or rule or regulation or guideline, as the case may be, for the time being in force, governing the conduct of such person” shall be substituted;

(II) in sub-clause (b), in paragraph (ii), in sub-paragraph (B), in item (IV), for the word “payer”, the word “payee” shall be substituted;

E. in clause 26, for the brackets, letters and word “(f) or (g)”, the brackets, letters and word “(f), (g) or (h)” shall be substituted;

F. in clause 32, in sub-clause (a),––

(I) in the table, in column (5), for the figures and letters “115BAD”, the figures and letters “115BAD/115BAE” shall be substituted;

(II) in the table, in column (6), for the figures and letters, “115BAD^”, the figures and letters “115BAD/115BAE^” shall be substituted;

(III) below the table, for the words and figures “To be filled in for assessment year 2021-22 only.”, the words and figures “To be filled in only for assessment year 2021-22 and 2024-25, as applicable.”, shall be substituted;

 b) In Form No. 3CEB, in the Annexure thereto, in Part C (Specified domestic transaction), serial number 25 shall be re-numbered as serial number 26 thereof and before serial number 26 as so renumbered, the following shall be inserted, namely:—

c) In Form No. 65,––

(i) under the heading “Verification”, after clause (4), the following clause shall be inserted, namely:––

“ (5) *I certify that the applicant company is a unit of an International Financial Services Centre and has filed the application within three months from the date on which the deduction under section 80LA of the Income- tax Act, 1961 is no longer applicable.”;

(ii) in the Annexure, in PART A, for clause 6, the following clauses shall be substituted, namely:––

“ 6. Date on which the company became a qualifying company [to be given only in case of a company which becomes a qualifying company after the initial period] (enclose evidence in support of the claim)     

6A. (a) Has the applicant company availed of deduction under section 80LA of the Income- tax Act, 1961?

 (b) If so, please specify the date on which such deduction is no longer applicable?”

Income of any fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or subclause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 (hereinafter referred to as trust or institution under the first regime) of the Income-tax Act, 1961 (hereinafter referred to as the Act) or any trust or institution registered under section 12AA or section 12AB of the Act (hereinafter referred to as trust or institution under the second regime) is exempt subject to fulfilment of certain conditions specified under various sections of the Act.

1. One of the conditions required to be fulfilled by the trust or institution in order to be eligible to claim exemption under the first regime, is laid down in clause (b) of the tenth proviso to clause (23C) of section 10 of the Act. This states that in case the total income of the trust or institution, as computed under the Act without giving effect to the provisions of exemption under the first regime, exceeds the maximum amount which is not chargeable to income-tax in any previous year, the trust or institution is required to get its accounts audited and furnish the audit report in the prescribed Form before the specified date.
   1. A similar condition is in place for trust or institution under the second regime in subclause (ii) of clause (b) of sub-section (1) of section 12A of the Act.
2. Rule 16CC and 17B of the Income-tax Rules, 1962 (hereinafter referred to as the Rules) prescribe the form of audit report for trust or institution under the first and second regime respectively. They provide that the report of audit of the accounts of a trust or institution, shall be furnished in

1. Form No. lOB where,

F.No.3(543)/GST/Policy/2024/1312-18 dated March 01, 2024

Background: Several representations have been received with regard to allowing rectification of demand orders issued by zonal/ field formations on account of difficulties faced by tax payers/ dealers. It is submitted that allowing for rectification reduce the unnecessary litigation. Further, it has been brought to the notice of this Department, that several demand orders passed by Proper Officer pertaining to the FY 2017-18 have apparent errors including clerical/ arithmetical mistakes which can be simply resolved by invoking the provisions of rectifications as available under the DGST Act, 2017.

In this regard, the field formations are advised to strictly follow the letter of the law. The provisions of the Act have been reproduced as below:

Section 161. Rectification of errors apparent on the face of record:-

Without prejudice to the provisions of Section 160, and notwithstanding anything contained in any other provisions of this Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document, may rectify any error which is apparent on the face of record in such decision or order or notice or certificate or any other document, either on its own motion or where such error is brought to its notice by any officer appointed under this Act or an officer appointed under this Act or an officer appointed under the Central Goods and Services Tax Act or by the affected person within a period of three months from the date of issue of such decision or order or notice or certificate or any other document, as the case may be:

Provided that no such rectification shall be done after a period of six months from the date of issue of such decision or order or notice or certificate or any other document.

Provided further that the said period of six months shall not apply in such cases where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission:

Provided also that where such rectification adversely affects any person, the principles of natural justice shall be followed by the authority carrying out such rectification.

Further, sub-rule (7) of Rule 142 of DGST Rules, 2017 states that

...(7) Where a rectification of the order has been passed in accordance with the provisions of section 161 or where an order uploaded on the system has been withdrawn, a summary of the rectification order or of the withdrawal order shall be uploaded electronically by the proper officer in FORM GST DRC-08.

Following points merits attention of ward officers while invoking the provisions of rectification

I. It should be ensured that the reasons for initiating suo-moto rectifications are recorded in writing before such proceedings are initiated.

II. Where such powers are invoked on the application filed by the registered person, the application should be made within three months of the date of the order. Further, the rectification order in FORM GST DRC-08 should be passed within the period of six months of the date of original order.

III. The power of rectification in the order is confined only to mistakes apparent on the face of record. The application for rectification can be made if the mistake is ex facie and the matter does not involve presentation of further arguments or replies or submissions by either counter parties. In simple terms, a decision on the debatable point of law or undisputed questions of fact is not a mistake apparent from the record.

IV. Even in certain scenarios the Authority may not have considered the arguments as submitted by the appellant then such missed submissions may also not be considered as mistake apparent on record as in case of supporting documents not considered etc. Therefore, if there are interpretation points on facts of the case or from the law perspective, then it cannot be processed through rectification procedure.

V. The rectification may not be done where an appeal is preferred by the registered person to higher appellate forums.

Following type cases have been brought to the notice of this department and may be considered for limited purposes rectification under section 161:

a. Where amount of demand in question has already fully deposited/ reversed vide DRC-03 and adequately informed to the proper officer in the reply filed by the registered person/ dealer but the same has not been taken into consideration at the time of issuance of demand order.

b. Where there is arithmetical error i.e. calculation error/ head error i.e. IGST, CGST and DGST in the demand order issued by the proper officer.

The field formations are hereby advised to carefully examine the provisions of DGST Act, 2017 and apply their mind while invoking powers of the rectification for all the above cases.