Notifications (August 2021)

THE CBDT HAS AMENDED ITS RULES TO ALLOW ‘ANY OTHER PERSON’ TO CHECK AN INCOME TAX RETURN

The Central Board of Direct Taxes (CBDT) issues rules requiring ‘any other person’ to check ITRs and present them before authorities on behalf of a corporation or limited liability partnership. By notifying Income-tax Rules by the Income-Tax (24th Amendment) Rules, 2021, which seeks to further amend the Income Tax Rules, 1962, the board empowered under clauses (c) and (cd) of section 140 has inserted Rule 12AA and 51B by notifying Income-tax Rules by the Income-Tax (24th Amendment) Rules, 2021, which seeks to further amend the Income Tax Rules, 1962.

The new Rule 51B addresses the Authorised Representative’s appearance in specific circumstances. It states that for the purposes of clause (viii) of sub-section (2) of section 288, any other person, in respect of a company or a limited liability partnership, as the case may be, shall be the person appointed by the Adjudicating Authority to carry out the duties and functions of an interim resolution proffered by the Adjudicating Authority.

A person who, whether directly or indirectly, has a commercial relationship with the assessee of such sort as may be prescribed, according to Section 288 (2) (viii) of the Income Tax Act.

For the purposes of clauses (c) and (cd) of section 140, the CBDT has added Rule 2AA in respect of a prescribed person. “Adjudicating Authority” has the same meaning as in clause (1) of part 5 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) and rules and regulations adopted thereunder, according to the rule.

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CBIC GIVES A CLARIFICATION REGARDING DE-NOTIFICATION OF ICDS OR CFSS OR AFS

The Central Board of Indirect Taxes and Customs (CBIC) has issued circular denotifying inland container depots (ICDs), container freight stations (CFSs), and air freight stations (AFSs). When the custodians of Inland Container Depots (ICDs) and Container Freight Stations (CFSs) wanted to shut down operations and contact Customs formations for de-notification, CBIC recognized the challenges they faced. In the lack of a defined mechanism for de-notifying, there is said to be an excessive delay. The Customs field formations encounter obstacles in such circumstances, according to the CBIC, in terms of timely payment of Cost Recovery Charges and disposal of uncleared, seized, and confiscated goods. 

If no dues, including tariffs on uncleared items that are later sold, are pending recovery from the custodian, Customs will become appropriate for de-notification. All uncleared goods in the facility have been removed by disposal and/or relocation to any other facility under the Commissionerate’s control. All detained, seized, or confiscated goods are disposed of and moved out of the facility to another place for safe custody. All other Customs property, such as office records, furniture, and so on, is taken from the premises.

If the Minister of State for Customs and Border Control determines that the facility is ready for de-recognition, the de-notification of postings at ICD and AFS will be revoked. The move followed a report from the CBIC’s Board of Directors, which found that the postings had been sanctioned in breach of the Customs Act’s sections 8 and 45. 

The custodian’s bond and security (such as a bank guarantee) will be held by Customs until any complaints against him are resolved. It must be assured that all goods for which the custodian has assumed responsibility are properly disposed of in accordance with the law.

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