EXECUTIVE PROGRAMME

(NEW SYLLABUS)

SUPPLEMENT

FOR

TAX LAWS

(Relevant for Students appearing in June, 2020 Examination)

MODULE 1- PAPER 4

Disclaimer-
This document has been prepared purely for academic purposes only and it does not
necessarily reflect the views of ICSI. Any person wishing to act on the basis of this document
should do so only after cross checking with the original source.

Students appearing in June, 2020 Examination shall note the Following:

1. For Direct taxes, Finance Act, 2019 is applicable.

2. Applicable Assessment year is 2020-21 (Previous Year 2019-20).
3. For Indirect Taxes: Goods and Services Tax ‘GST’ & Customs Law is applicable for
Executive Programme (New Syllabus)

Students are also required to update themselves on all the relevant Rules, Notifications,
Circulars, Clarifications, etc. issued by the CBDT, CBIC & Central Government, on or
before six months prior to the date of the examination.

The students who do not have the latest version of the study material may refer the latest
study material available on the weblink:
https://www.icsi.edu/media/webmodules/TAX_LAWS_june2020.pdf for June, 2020 examination.

1
 TABLE OF CONTENT

SUPPLEMENT FOR TAX LAW

PART I-DIRECT TAXATION
Page No.
(MAJOR NOTIFICATIONS AND CIRCULARS JULY 2019- DECEMBER
2019)
Income Tax Act, 1961 & Rules 1962 (Relevant Circulars) 3-11
Income Tax Act, 1961 & Rules 1962 (Relevant Notifications) 12-22

2
 INCOME TAX ACT, 1961 & RULES 1962

CIRCULARS

Sr. Updates Lesson

No. No.
1. Circular No. 14 dated 3th July 2019 Lesson
2
Clarification regarding taxability of income earned by a non-
resident investor from off-shore investments routed through an
Alternate Investment Fund

The incidence of tax arising from off-shore investment made by a non-resident

investor through the AIFs would depend on determination of status of income
of non-resident investor as per provisions of section 5(2) of the Income-tax
Act, 1961 (Act). As per section 5(2) of the Act, the income of a person who is
non-resident, is liable to be taxed in India if it is received or is deemed to
be received in India in such year by or on behalf of such person; or accrues
or arises or is deemed to accrue or arise to him in India.

Section 115UB of the Act ('Tax on income of investment fund and its unit
holders) is the applicable provision to determine the income and tax-liability of
investment funds & their investors. In this context, investment fund “is defined
to mean any fund established or incorporated in India in the form of a trust or
a company or a limited liability partnership or a body corporate which has
been granted a certificate of registration as a Category I or Category II
Alternative Investment Fund and is regulated under the Securities and
Exchange Board of India (Alternative Investment Fund) Regulations, 2012,
made under the Securities and Exchange Board of India Act, 1992 (15 of 1992).
Thus, provisions of section 115UB apply only to Category I or Category II AIFs,
as defined in SEBIs regulations.

By an overriding effect over other provisions of the Act, sub-section (1) of

section 115UB of the Act provides that any income accruing or arising to, or
received by, a person, being a unit holder of an investment fund, out of
investments made in the investment fund, shall be chargeable to income-tax in
the same manner as If it were the income accruing or arising to, or received by,
such person had the investments made by the investment fund been made
directly by him and not through the AIF.

The matter has been considered by the Board. As section 115UB (1) of the Act
provides that the investments made by Category I or Category II AIFs are
deemed to have been made by the investor directly, it is hereby clarified that
any income in the hands of the non-resident investor from off-shore
investments routed through the Category I or Category II AIF, being a deemed
3
 direct investment outside India by the non-resident investor, is not taxable in
India under section 5(2) of the Act.

It is further clarified that loss arising from the off-shore investment relating to
non-resident investor, being an exempt 1055, shall not be allowed to be set-off
or carried-forward and set off against the income of the Category I or Category
II AIF .

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_no_14_2019.pdf

2. C Circular No. 17 Dared: 8th August 2019 Lesson

10
Further Enhancement of Monetary limits for filing of appeals by the
Department before Income Tax Appellate Tribunal, High Courts
and SLPs/appeals before Supreme Court - Amendment to Circular 3
of 2018 - Measures for reducing litigation

Appeals/SLPs in Monetary Limit (Rs.)

Income-tax matters
Before Appellate Tribunal 50,00,000
Before High Court 1,00.00.000
Before Supreme Court 2.00.00,000

Further, with a view to provide parity in filing of appeals in scenarios where

separate order is passed by higher appellate authorities for each assessment
year vis-a-vis where composite order for more than one assessment years is
passed. para 5 of the circular is substituted by the following para:

“The Assessing Officer shall calculate the tax effect separately for every
assessment year in respect of the disputed issues in the case of every assessee.
If, in the case of an assessee, the disputed issues arise in more than one
assessment year, appeal can be filed in respect of such assessment year or years
in which the tax effect in respect of the disputed issues exceeds the monetary
limit specified in para 3. No appeal shall be filed in respect of an assessment
year or years in which the tax effect is less than the monetary limit specified in
para 3.

Further, even in the case of composite order of any High Court or appellate
authority which involves more than one assessment year and common issues in
more than one assessment year, no appeal shall be filed in respect of an
assessment year or years in which the tax effect is less than the monetary limit
specified in para 3. In case where a composite order / judgement involves
more than one assesse, each assessee shall be dealt with separately.”

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_17_2019.pdf

4
3. Circular No. 18 Dated: 8th August, 2019 Lesson
9
Clarification in respect of filling-up of the ITR forms for the
Assessment Year 2019-20

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_18_2019.pdf

4. Circular No. 19 Dated: 14th August, 20 19 Lesson

9
Generation/Allotment/Quoting of Document Identification Number
in Notice/Order/Summons/letter/correspondence issued by the
Income-tax Department

With the launch of various e-governance initiatives, Income-tax Department is

moving toward total computerization of its work. This' has led to a significant
improvement in delivery of services and has also brought greater transparency
in the functioning of the tax-administration. Presently, almost all notices and
orders are being generated electronically on the Income Tax Business
Application (ITBA) platform. However, it has been brought to the notice of the
Central Board of Direct Taxes (the Board) that there have been some instances
in which the notice, order, summons, letter and any correspondence
(hereinafter referred to as "communication") were found to have been issued
manually, without maintaining a proper audit trail of such communication.
In order to prevent such instances and to maintain proper audit trail of all
communication, the Board in exercise of power under section 119 of the
Income-tax Act, 1961 (hereinafter referred to as "the Act"), has decided that no
communication shall be issued by any income-tax authority relating to
assessment, appeals, orders, statutory or otherwise, exemptions, enquiry,
investigation, verification of information, penalty, prosecution, rectification,
approval etc.. to the assessee or any other person, on or after the 1st day of
October, 20 19 unless a computer-generated Document Identification Number
(DIN) has been allotted and is duly quoted in the body of' such communication

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_19_2019.pdf

5. Circular No. 21 Dated: 27th August, 2019 Lesson

9
Clarifications in respect of filling-up of the ITR forms for the
Assessment Year 2019-20

The Income-tax Return (ITR) forms for the Assessment Year (A.Y.) 2019-20
were notified vide notification bearing G.S.R. 279(E) dated the 01st day of
April, 2019. Subsequently, instructions for filing ITR forms were issued and
the software utility for e-filing of all the ITR forms were also released. After
notification of the ITR forms, various queries were raised by the stakeholders
in respect of filling-up of the ITR forms. The queries were examined in the
Board and a clarification was issued vide Circular No. 18 of 2019 dated
08.08.2019 to address the concerns raised.

5
 Subsequently, further representations have been received on certain issues
relating to filing of ITR Forms. Accordingly, clarifications are issued in partial
modification of Circular No. 18 of 2019.

In ITR Form-2 and ITR Form-3, in Part-A General, at column (h), the taxpayer
is required to state whether he was Director in a company at any time during
the previous year. In case of an affirmative answer, the taxpayer is further
required to disclose following information relating to each company in which
he was a Director:-
Name of Company
PAN
Whether its shares are listed or unlisted
Director Identification Number (DIN)

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_21_19.pdf

6. Circular No. 22 Dated: 30th August 2019 Lesson

10
Consolidated circular for assessment of Startups
In order to provide hassle-free tax environment to the Startups, a series of
announcements have been made by the Hon'ble Finance Minister in her
Budget Speech of 2019 and also on 23rd August, 2019. To give effect to these
announcements, the Central Board of Direct Taxes (CBDT) has issued various
circulars/ clarifications in the matter. This circular consolidates all these
circulars and further clarifies the following:

 Procedure for pending assessment of the Startups,

 Time limit for Completion of pending assessments of the Startups,
 Procedure for addition made U/S 56 (2)(vii b) in the past assessment
 Constitution of Startup cell

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_22_2019.pdf

7. Circular No. 23 Dared 6th September 2019 Lesson
10
Exception to monetary limits for filing appeals specified in any
Circular issued under Section 268A of the Income-tax Act, 1961

Section 268A of the Income-tax Act,1961 (the Act), laying down monetary
limits and other conditions for filing of departmental appeals before Income
Tax Appellate Tribunal (ITA T), High Courts and SLPs/appeals before Supreme
Court.

Several references have been received by the Board that in large number of
cases where organised tax-evasion scam is noticed through bogus Long-Term
Capital Gain (LTCG)/Short Term Capital Loss (STCL) on penny stocks and
department is unable to pursue the cases in higher judicial fora on account of
enhanced monetary limits. It has been reported that in large number of cases,
ITA Ts and High Court have recognized the unique modus operandi involved in
such scam and have passed judgements in favour of the revenue. However, in

6
 cases where some appellate fora have not given due consideration to position of
law or facts investigated by the department, there is no remedy available with
the department for filing further appeal in view of the prescribed monetary
limits.
In this context, Board has decided that notwithstanding anything contained in
any circular issued U/S 268A specifying monetary limits for filing of
departmental appeals before Income Tax Appellate Tribunal (IT AT), High
Courts and SLPs/appeals before Supreme Court, appeals may be filed on
merits as an exception to said circular, where Board, by way of special order
direct filing of appeal on merit in cases involved in organised tax evasion
activity.

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_23_2019.pdf

8. Circular No. 24 Dared 9th September 2019 Lesson

10
Procedure for identification and processing of cases for prosecution
under Direct Tax Laws
Prosecution is a criminal proceeding. Therefore, based upon evidence
gathered, offence and crime as defined in the relevant provision of the Act, the
offence has to be proved beyond reasonable doubt. To ensure that only
deserving cases get prosecuted the Central Board of Direct Taxes in exercise of
powers under section 119 of the Act lays down the following criteria for
launching prosecution in respect of the following categories of offences.

I. Offences u/s 276B: Failure to pay tax to the credit of Central

Government under Chapter XII-D or XVII-B
Cases where non-payment of tax deducted at source is Rs. 25 Lakhs or
below, and the delay in deposit is less than 60 days from the due date,
shall not be processed for prosecution in normal circumstances. In case
of exceptional cases like, habitual defaulters, based on particular facts
and circumstances of each case, prosecution may be initiated only with
the previous administrative approval of the Collegium of two
CCIT/DGIT rank officers.

II. Offences u/s 276BB: Failure to pay the tax collected at source.
Same approach

III. Offences u/s 276C(1): Willful attempt to evade tax, etc. Cases where
the amount sought to be evaded or tax on under-reported income is
Rs. 25 Lakhs or below, shall not be processed for prosecution except
with the previous administrative approval of the Collegium of two
CClT/DGIT rank officers. Further, prosecution under this section shall
be launched only after the confirmation of the order imposing penalty
by the Income Tax Appellate Tribunal.

IV. Offences Ills 276CC: Failure to furnish returns of income.

Cases where the amount of tax, which would have been evaded if the
failure had not been discovered, is Rs. 25 Lakhs or below, shall not be
processed for prosecution except with the previous administrative

7
 approval of the Collegium of two CClT/DGIT rank officers.

Further https://www.incometaxindia.gov.in/communications/circular/circular-24-
details:
2019-11-09-2019.pdf

9. Circular No. 25 Dated 9th September 2019 Lesson

10
Relaxation of time-Compounding of Offences under Direct Tax
Laws-One-time measure

The Central Board of Direct Taxes (CBDT) has been issuing guidelines from
time to time for compounding of offences under the Direct Tax Laws,
prescribing the eligibility conditions. One of the conditions for filing of
Compounding application is that, it should be filed within 12 months from
filing of complaint in the court.

Cases have been brought to the notice of CBDT where the taxpayers could not
apply for Compounding of the Offence, as the compounding application was
filed beyond 12 months, in view of para 8(vii) of the Guidelines for
Compounding of Offences under Direct Tax Laws, 2014 dated 23.12.2014 or in
view of para 7(ii) of the Guidelines for Compounding of Offences under Direct
Tax Laws, 2019 dated 14.06.2019.

With a view to mitigate unintended hardship to taxpayers in deserving cases,

and to reduce the pendency of existing prosecution cases before the courts, the
CBDT clarifies that as a one-time measure, the condition that compounding
application shall be filed within 12 months, is hereby relaxed, under the
following conditions:
i. Such application shall be tiled before the Competent
Authority i.e. the Pro CCIT/CCIT/Pr. DGIT/DGIT concerned,
on or before 31.12.2019.
ii. Relaxation shall not be available in respect of an offence
which is generally/normally not compoundable, in view of
Para 8.1 of the Guidelines dated 14.06.2019.

For the purposes of this Circular, application can be filed in all such cases
where-
a) prosecution proceedings are pending before any court of law for more
than 12 months, or
b) any compounding application for an offence filed previously was
withdrawn by the applicant solely for the reason that such application
was filed beyond 12 months, or
c) any compounding application for an offence had been rejected
previously solely for technical reasons.

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_25_2019.pdf

8
10. Circular No. 27 Dated: 26th September 2019 Lesson
10
Conduct of assessment proceedings through 'E-Proceeding' facility
during financial year 2019-20

The Central Board of Direct Taxes ('Board'), hereby directs as under:

i. In all cases (other than the cases covered under the E-Assessment
scheme, 2019' notified by the Board), where assessment is to be framed
under section 143(3) of the Act during the financial year 2019-20, it is
hereby directed that such assessment proceedings shall be conducted
electronically subject to exceptions in para below. Consequently,
assessees are required to produce/ cause to produce their
response/evidence to any notice/ communication/ show-cause issued by
the Assessing Officer electronically (unless specified otherwise) through
their 'E-filing' account on the 'E-filing' portal. For smooth conduct of
assessment proceedings through 'E-Proceeding', it is further directed
that requisition of information in cases under ' E-Proceeding' should be
sought after a careful scrutiny of case records.
ii. In following cases, where assessment is to be framed during the
financial year 2019- 20, 'E-Proceeding' shall not be mandatory:
a. Where assessment is to be framed under section(s) 153A, 153C
and 144 of the Act. In respect of assessments to be framed
under section 147 of the Act, any relaxation from e-proceeding
due to the difficulties in migration of data from ITO to ITBA
etc. shall be dealt as per clause (f) below;
b. In set-aside assessments;
c. Assessments being framed in non-PAN cases;
d. Cases where Income-tax return was filed in paper mode and
the assessee concerned does not yet have an 'E-filing' account;
e. In all cases at stations connected through the VSAT or with
limited capacity of bandwidth (list of such stations shall be
specified by the Pr. DGIT (System));
f. In cases covered under para 1 (i) above, the jurisdictional Pr.
CIT/CIT, in extraordinary circumstances such as complexities
of the case or administrative difficulties in conduct of
assessment through 'E-Proceeding', can permit conduct of
assessment proceedings through the conventional mode. It is
hereby further directed that Pr.CIT/CIT is required to provide
such relaxation only in extraordinary circumstances after
examining the necessity for such relaxation and recording the
reasons for providing such relaxations.

(i) The notices and departmental communications in such cases shall be

strictly governed by the guidelines issued by CBDT vide its Circular
No.19/2019 dated 14.08.2019 regarding
generation/allotment/quoting of Document Identification Number
(DIN).

(ii) In cases where assessment proceedings are being carried out through
the 'E- Proceeding' as per para 1 (i) above, personal hearing/
attendance may take place in following situation(s):

9
 a. Where books of accounts have to be examined;
b. Where Assessing Officer invokes provisions of section 131 of the
Act;
c. Where examination of witness is required to be made by the
assessee or the Department;
d. Where a show-cause notice contemplating any adverse view is
issued by the Assessing Officer and assessee requests through
their 'E-filing' account for personal hearing to explain the
matter. However, the details pertaining to above shall be
uploaded on ITBA subsequently.

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_27_2019.pdf

11. Circular No. 29 Dated: 2nd October, 2019 Lesson

2&8
Clarification in respect of option under section 115BAA of the
income tax Act , 1961 inserted through The Taxation Laws
(Amendment) Ordinance 2019

Section 115BAA in the Income-tax Act, 1961 provides that a domestic company
shall, at its option, pay tax at a lower rate of 22 percent for any previous year
relevant t0 the Assessment Year beginning on or after 1" April 2020 subject to
certain conditions including that the total income should be computed without
claiming any deduction or exemption:

The option is required to be exercised by the company before the due date of
furnishing return of income and the option once exercised, cannot be
subsequently withdraw and shall apply to all subsequent assessment.

The Ordinance also amended section 115JB of the Act relating to Minimum
Alternate Tax (MAT) so as at inter alia provide that the provisions of said
section shall not apply to a person who has exercised the option referred to
under newly inserted section 115BAA.

Representations have been received from the stakeholders seeking clarification

on following issues relating to exercise of option under section 115BAA:

a) Allowability of brought forward loss on account of additional

depreciation: and
b) Allowability of brought forward MAT credit.

These issues have been examined in the board and in order to provide clarity in
the matter, the clarifications are issued as under:

As regards allowability of brought forward loss on account of additional

depreciation, it may be noted that clause (i) of sub-section (2) of the newly
inserted section 115 BAA inter alia, provides that the total income shall be
computed without claiming any deduction under clause (iia) of sub-section (1)
of section 32 (additional depreciation): and clause (ii) of the said sub - section
provide that the total income shall be computed without claiming set off of any
loss carried forward from any earlier assessment year if the same is
10
 attributable inter alia, to additional depredation. Therefore, a domestic
company which, would exercise option for availing benefit of lower tax rate
under section 115BAA shall not be allowed to claim set off of any brought
forward loss on account of additional depreciation for an Assessment Year for
which the option has been exercised and for any subsequent Assessment Year.
Further as there is n0 lime line within which option under section 115BAA can
be exercised, it may be noted that a domestic company having brought forward
losses on account of additional depreciation may if it so desires, exercise the
option after set off of the losses so accumulated.

As regards allowability of brought forward MAT credit, it may be noted that as

the provisions of section 115JB relating to MAT itself shall not be applicable to
the domestic company which exercises option under section 115BAA, it is
hereby clarified that the tax credit of MAT paid by the domestic company
exercising option under section 115BAA of the Act shall not be available
consequent to exercising of such option.

Further, as there is no lime line within which option under section 1l5BAA can
be exercised, it may be noted that a domestic company having credit of MAT
may, if it s0 desires, exercise the option after 11tilizing the said credit against
the regular tax payable under the taxation regime existing prior to
promulgation of the ordinance.

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_29_2019.pdf

12. Circular No. 32 Dated: 30th December, 2019 Lesson

10
Clarifications in respect of prescribed electronic modes under
section 269SU of the Income-tax Act, 1961
In furtherance to the declared policy objective of the Government to encourage
digital economy and move towards a less-cash economy, a new provision
namely Section 269SU was inserted in the Income-tax Act, 1961 vide the
Finance (No. 2) Act 2019, which provides that every person having a business
turnover of more than Rs 50 Crore shall mandatorily provide facilities for
accepting payments through prescribed electronic modes. The said electronic
modes have been prescribed vide notification no. 105/2019 dated 30.12.2019.
Further, Section 10A of the Payment and Settlement Systems Act 2007,
inserted by the Finance Act, provides that no Bank or system provider shall
impose any charge on a payer making payment, or a beneficiary receiving
payment, through electronic modes prescribed under Section 269SU of the Act.

In this connection, it may be noted that the Finance Act has also inserted
section 271 DB in the Act, which provides for levy of penalty of five thousand
rupees per day in case of failure by the specified person to comply with the
provisions of section 269SU. In order to allow sufficient time to the specified
person to install and operationalise the facility for accepting payment through
the prescribed electronic modes, it is hereby clarified that the penalty under
section 271 DB of the Act shall not be levied if the specified person installs and
operationalises the facilities on or before 31" January, 2020.

Further details: https://www.incometaxindia.gov.in/communications/circular/circular_32_2019.pdf

11
 INCOME TAX ACT, 1961 & RULES 1962

NOTIFICATIONS

Sr. Updates Lesson

No No.
.
1 Notification No. 56 /2019 Dated 2nd August, 2019 Lesson
3
The Central Government hereby for the purpose of clause (46) of section 10 of
the Income-tax Act, 1961 notifies ‘Bangalore Water Supply and Sewerage
Board’, Bengaluru (PAN AAALB0015G) a Board constituted by the Government
of Karnataka, in respect of the following specified income arising to that Board:
(a) Water Charges;
(b) Sanitary and Borewell Charges;
(c) Special Sanitary Charges;
(d) Meter Charge;
(e) Bulk Water Charges;
(f) Rent; and
(g) Interest on surplus amount earned out of the above.
This notification shall be effective subject to the conditions that Bangalore
Water Supply and Sewerage Board, Bengaluru,-
(a) shall not engage in any commercial activity;
(b) (b) activities and the nature of the specified income shall remain
unchanged throughout the financial years; and
(c) shall file return of income in accordance with the provision of
clause (g) of sub-section (4C) of section 139 of the Income-tax
Act, 1961.
This notification shall apply with respect to the assessment year 2020-2021,
2021-2022, 2022-2023, 2023-2024 and 2024-2025.

Further details: https://www.incometaxindia.gov.in/communications/notification/notification_56_2019.pdf

2. Notification No. 59/2019 Dated 30th August, 2019 Lesson

9
The Central Board of Direct Taxes hereby makes the Income–tax (Fifth
Amendment) Rules, 2019 which shall come into force from the 1st day of
September, 2019.

In the Income-tax Rules, 1962, in rule 114,

(i) after sub-rule (1), the following sub-rules shall be inserted, namely: _

“(1A) Any person, who has not been allotted a permanent account number but
possesses the Aadhaar number and has furnished or intimated or quoted his
Aadhaar number in lieu of the permanent account number in accordance with
sub-section (5E) of section 139A, shall be deemed to have applied for allotment

12
 of permanent account number and he shall not be required to apply or submit
any documents under this rule.

(1B) Any person, who has not been allotted a permanent account number but
possesses the Aadhaar number may apply for allotment of the permanent
account number under sub-section (1) or subsection (1A) or sub-section (3) of
section 139A to the authorities mentioned in sub-rule (2) by intimating his
Aadhaar number and he shall not be required to apply or submit any
documents under this rule.

(1C) The Principal Director General of Income-tax (Systems) or Director

General of Income-tax (Systems) shall on receipt of information under sub-rule
(1A) or sub-rule (1B), as the case may be, authenticate the Aadhaar number for
that purpose.”;

(ii) after sub-rule (6), the following sub-rule shall be inserted, namely:

“(7) The Principal Director General of Income-tax (Systems) or Director

General of Income-tax (Systems) shall lay down the formats and standards
along with procedure for,

(a) furnishing or intimation or quoting of Aadhaar number under sub-rule

(1A); or
(b) intimation of Aadhaar number under sub-rule (1B); or
(c) authentication of Aadhaar number under sub-rule (1C); or
(d) obtaining demographic information of an individual from the Unique
Identification Authority of India,

for ensuring secure capture and transmission of data and shall also be
responsible for evolving and implementing appropriate security, archival and
retrieval policies in relation to furnishing or intimation or quoting or
authentication of Aadhaar number or obtaining of demographic information of
an individual from the Unique Identification Authority of India, for allotment of
permanent account number and issue thereof.”

Further details: https://www.incometaxindia.gov.in/communications/notification/notification59_2019.pdf

3. Notification No. 62/2019 Dated 12th September, 2019 Lesson

10
For the purposes of giving effect to the E-assessment Scheme, 2019 made
under sub-section (3A) of section 143 of the Act, the Central Government
hereby makes the following directions, namely:
The provisions of clause (7A) of section 2, section 92CA, section 120, section
124, section 127, section 129, section 131, section 133, section 133A, section
133C, section 134, section 142, section 142A, section 143, section 144A, section
144BA section 144C and Chapter XXI of the Act shall apply to the assessment
made in accordance with the said Scheme subject to the following exceptions,
modifications and adaptations, namely: -

“A. (1) The assessment shall be made as per the following procedure,

13
namely:__

(i) the National e-assessment Centre shall serve a notice on the assessee
under sub-section (2) of section 143, specifying the issues for
selection of his case for assessment;

(ii) the assessee may, within fifteen days from the date of receipt of notice
referred to in sub-clause (i), file his response to the National e-
assessment Centre;
(iii) the National e-assessment Centre shall assign the case selected for the
purposes of assessment under this Scheme to a specific assessment
unit in any one Regional e-assessment Centre through an automated
allocation system;
(iv) where a case is assigned to the assessment unit, it may make a request
to the National e-assessment Centre for__
a. obtaining such further information, documents or evidence from
the assesse or any other person, as it may specify;
b. conducting of certain enquiry or verification by verification unit;
and
c. seeking technical assistance from the technical unit;

(v) where a request for obtaining further information, documents or

evidence from the assessee or any other person has been made by the
assessment unit, the National e-assessment Centre shall issue
appropriate notice or requisition to the assessee or any other person
for obtaining the information, documents or evidence requisitioned
by the assessment unit;
(vi) where a request for conducting of certain enquiry or verification by
the verification unit has been made by the assessment unit, the
request shall be assigned by the National e-assessment Centre to a
verification unit through an automated allocation system;
(vii) where a request for seeking technical assistance from the technical
unit has been made by the assessment unit, the request shall be
assigned by the National e-assessment Centre to a technical unit in
any one Regional e-assessment Centre through an automated
allocation system;
(viii) the assessment unit shall, after taking into account all the relevant
material available on the record, make in writing, a draft assessment
order either accepting the returned income of the assessee or
modifying the returned income of the assesse, as the case may be,
and send a copy of such order to the National e-assessment Centre;
(ix) the Assessment unit shall, while making draft assessment order,
provide details of the penalty proceedings to be initiated therein, if
any;
(x) the National e-assessment Centre shall examine the draft assessment
order in accordance with the risk management strategy specified by
the Board, including by way of an automated examination tool,
14
 whereupon it may decide to –
a. finalise the assessment as per the draft assessment order and
serve a copy of such order and notice for initiating penalty
proceedings, if any, to the assessee, alongwith the demand
notice, specifying the sum payable by, or refund of any amount
due to, the assessee on the basis of such assessment; or
b. provide an opportunity to the assessee, in case a modification
is proposed, by serving a notice calling upon him to show
cause as to why the assessment should not be completed as per
the draft assessment order; or
c. assign the draft assessment order to a review unit in any one
Regional e-assessment Centre, through an automated
allocation system, for conducting review of such order;
(xi) the review unit shall conduct review of the draft assessment order,
referred to it by the National e-assessment Centre whereupon it may
decide to__

a. concur with the draft assessment order and intimate the

National e-assessment Centre about such concurrence; or
b. suggest such modification, as it may deem fit, to the draft
assessment order and send its suggestions to the National e-
assessment Centre;
(xii) the National e-assessment Centre shall, upon receiving concurrence
of the review unit, follow the procedure laid down in sub-paragraph
(a) or sub-paragraph (b) of paragraph (x), as the case may be;
(xiii) the National e-assessment Centre shall, upon receiving suggestions
for modifications from the Review unit, communicate the same to the
Assessment unit;
(xiv) the assessment unit shall, after considering the modifications
suggested by the Review unit, send the final draft assessment order to
the National e-assessment Centre;
(xv) The National e-assessment Centre shall, upon receiving final draft
assessment order, follow the procedure laid down in sub-paragraph
(a) or sub-paragraph (b) of paragraph (x), as the case may be;
(xvi) The assessee may, in a case where show-cause notice under sub-
paragraph (b) of paragraph (x) has been served upon him, furnish his
response to the National e-assessment Centre on or before the date
and time specified in the notice;
(xvii) The National e-assessment Centre shall, -
a. in a case where no response to the show-cause notice is received,
finalise the assessment as per the draft assessment order, as per
the procedure laid down in sub-paragraph (a) of paragraph (x);
or
b. in any other case, send the response received from the assessee to
the assessment unit;

15
 (xviii) The assessment unit shall, after taking into account the response
furnished by the assessee, make a revised draft assessment order and
send it to the National e-assessment Centre;
(xix) The National e-assessment Centre shall, upon receiving the revised
draft assessment order, -
a. in case no modification prejudicial to the interest of the assessee
is proposed with reference to the draft assessment order, finalise
the assessment as per the procedure laid down in sub-paragraph
(a) of paragraph (x); or
b. in case a modification prejudicial to the interest of the assessee is
proposed with reference to the draft assessment order, provide
an opportunity to the assessee, as per the procedure laid down in
sub-paragraph (b) of paragraph (x);
c. the response furnished by the assessee shall be dealt with as per
the procedure laid down in paragraphs (xvi), (xvii) and (xviii);
(xx) The National e-assessment Centre shall, after completion of
assessment, transfer all the electronic records of the case to the
Assessing Officer having jurisdiction over such case., for –
(a) imposition of penalty;
(b) collection and recovery of demand;
(c) rectification of mistake;
(d) giving effect to appellate orders;
(e) submission of remand report, or any other report to be furnished,
or any representation to be made, or any record to be produced
before the Commissioner (Appeals), Appellate Tribunal or Courts, as
the case may be;
(f) proposal seeking sanction for launch of prosecution and filing of
complaint before the Court;
(xxi) Notwithstanding anything contained in paragraph (xx), the
National e-assessment Centre may at any stage of the assessment, if
considered necessary, transfer the case to the Assessing Officer having
jurisdiction over such case.

B. (1) A person shall not be required to appear either personally or through

authorised representative in connection with any proceedings under this
Scheme before the income-tax authority at the National e-assessment Centre
or Regional e-assessment Centre or in any unit set-up under this Scheme.

Further details: https://www.incometaxindia.gov.in/communications/notification/notification_62_2019.pdf

4. Notification No. 63/2019/Dated 12th September, 2019 Lesson

4
The Central Government vide this notification hereby notifies the Cost
Inflation Index for the FY 2019-20 as “289”
This notification shall come into force with effect from the 1st day of April,
2020 and shall accordingly apply to the Assessment Year 2020-2021 and
subsequent years.
Further details: https://www.incometaxindia.gov.in/communications/notification/notification_63_2019.pdf

16
5. Notification No. 70/2019 Dated New Delhi, the 20th September, Lesson
2019 9

Exemption to Commission Agent or trading operating under APMC

under clause (v) of the proviso to section 194N of the Income Tax
Act, 1961

The Central Government after consultation with the Reserve Bank of India,
hereby specifies the commission agent or trader, operating under Agriculture
Produce Market Committee (APMC), and registered under any Law relating to
Agriculture Produce Market of the concerned State, who has intimated to the
banking company or co-operative society or post office his account number
through which he wishes to withdraw cash in excess of rupees one crore in the
previous year along with his Permanent Account Number (PAN) and the details
of the previous year and has certified to the banking company or co-operative
society or post office that the withdrawal of cash from the account in excess of
rupees one crore during the previous year is for the purpose of making
payments to the farmers on account of purchase of agriculture produce and the
banking company or co-operative society or post office has ensured that the
PAN quoted is correct and the commission agent or trader is registered with the
APMC, and for this purpose necessary evidences have been collected and placed
on record.
The notification shall be deemed to have come into force with effect from the
1st day of September, 2019.
Explanatory Memorandum: It is certified that no person is being adversely
affected by giving retrospective effect to this notification.

For Details: https://www.incometaxindia.gov.in/communications/notification/notification_70_2019.pdf

6. Notification No. 74/ 2019 Dated 27th September, 2019 Lesson

9
The Central Board of Direct Taxes, hereby makes the Income-tax (10th
Amendment) Rules, 2019 which shall be deemed to have come into force with
effect from the 1st day of September, 2019.
In the Income-tax Rules, 1962, in rule 37BA, after sub-rule (3), the following
sub-rule shall be inserted, namely:-
“(3A) Notwithstanding anything contained in sub-rule (1), sub-rule (2) or sub-
rule (3), for the purposes of section 194N, credit for tax deducted at source shall
be given to the person from whose account tax is deducted and paid to the
Central Government account for the assessment year relevant to the previous
year in which such tax deduction is made”

Explanatory Memorandum: It is certified that no person is being adversely

affected by giving retrospective effect to the present rules.
For Details: https://www.incometaxindia.gov.in/communications/notification/notification_74_2019.pdf

7. Notification No. 78 /2019 Dated 9th October, 2019 Lesson

3
The Central Government hereby for the purpose of clause (46) of section 10 of
the Income-tax Act, 1961 notifies ‘Kerala Bamboo, Kattuvalli and Pandanus
Leaf Workers’ Welfare Fund Board’ (PAN AAAJK1244Q), a Board constituted
17
 by the Government of Kerala, in respect of the following specified income
arising to that Board:
a. Government grant received for Scheme and Non Scheme Pension;
b. Contributions received from Employees and Employers;
c. Registration Fees;
d. Passbook charges collected;
e. Cost of duplicate identity card issued;
f. Fine collected; and
g. Interest earned on (a) to (f) above.
This notification shall be effective subject to the conditions that Kerala
Bamboo, Kattuvalli and Pandanus Leaf Workers’ Welfare Fund Board,-
a) shall not engage in any commercial activity;
b) activities and the nature of the specified income shall remain unchanged
throughout the financial years; and
c) shall file return of income in accordance with the provision of clause (g)
of sub-section (4C) of section 139 of the Income-tax Act, 1961.
This notification shall apply with respect to the assessment years 2020-2021,
2021-2022, 2022-2023, 2023-2024 and 2024-2025.

For Details: https://www.incometaxindia.gov.in/communications/notification/notification_78_2019.pdf

8. Notification No. 82/2019 Dated 21st October, 2019 Lesson
3
The Central Government hereby notifies the Core Settlement Guarantee
Funds set up by the Multi Commodity Exchange Clearing Corporation
Limited, Mumbai for the purposes of the clause (23EE) of section 10 of the
Income-tax Act, 1961 for the assessment year 2019-2020 and subsequent
years.

For Details https://www.incometaxindia.gov.in/communications/notification/notification_no82_2019.pdf

9. Notification No. 83/2019 Dated 21st October, 2019 Lesson

3
The Central Government hereby notifies the infrastructure debt fund namely,
the ‘IDFC Infrastructure Finance Limited (PAN:AADCI5030Q)’ for the
purpose of clause (47) of section 10 of the Income Tax Act, 1961, for the
assessment year 2020-2021 and subsequent assessment years subject to the
following conditions, namely:—

i. that the infrastructure debt fund shall conform to and comply with the
provisions of the Income-tax Act, 1961, rule 2F of the Income-tax Rules,
1962 and the conditions provided by the Reserve Bank of India in this
regard;
ii. that the infrastructure debt fund shall file its return of income as
required by sub-section (4C) of section 139 of the Income-tax Act, 1961
on or before the due date.

For Details:
https://www.incometaxindia.gov.in/communications/notification/notification_no83_2019.pdf

10. Notification No. 88/2019 Dated 5th November, 2019 Lesson

1
The Central Board of Direct Taxes hereby makes the following amendments in
18
 the notification published in the Official Gazette vide number S.O. 2752(E),
dated the 22nd October, 2014 namely:-
In the said notification, in Schedule-I, against the entries in serial number 67,-
(i) in column (3), for the words “Jammu, Jammu and Kashmir”, the
words “Jammu, the Union territory of Jammu and Kashmir and the
Union territory of Ladakh” shall be substituted;
(i) in column (4), for the words “All districts of State of Jammu and
Kashmir”, the words “All districts of the Union territory of Jammu
and Kashmir and of the Union territory of Ladakh” shall be
substituted;
In Schedule –II, against the entries in serial number 8, in column (4), for the
words “State of Jammu and Kashmir” the words “the Union territory of Jammu
and Kashmir and the Union territory of Ladakh” shall be substituted.

This notification shall be deemed to have come into force with effect from the
31st day of October, 2019.

Explanatory Memorandum: It is hereby certified that no person is being

adversely affected by giving retrospective effect to this notification.

For Details: https://www.incometaxindia.gov.in/communications/notification/notification_88_2019.pdf

11. Notification No. 93 /2019 Dated 5th November, 2019 Lesson
1
The Central Board of Direct Taxes hereby makes the following amendments in
the notification published in the Official Gazette vide number S.O. 2914(E),
dated the 13th November, 2014 namely:-

In the said notification, in the Schedule, against the entries in serial number 4,
in column (6), for the words “Jammu and Kashmir”, the words “the Union
territory of Jammu and Kashmir and the Union territory of Ladakh” shall be
substituted.
This notification shall be deemed to have come into force with effect from the
31st day of October, 2019.

Explanatory Memorandum: It is hereby certified that no person is being

adversely affected by giving retrospective effect to this notification.

For Details: https://www.incometaxindia.gov.in/communications/notification/notification_93_2019.pdf

12. Notification No. 94 /2019 Dated 5th November, 2019 Lesson

1
The Central Board of Direct Taxes hereby makes the following amendments in
the notification published in the Official Gazette vide number S.O. 3125(E),
dated the 10th December, 2014 namely: -
In the said notification, in Schedule –II, against the entries in serial number 6,
in column (4), for the words “Jammu and Kashmir”, the words “the Union
territory of Jammu and Kashmir, Union territory of Ladakh” shall be
substituted.

This notification shall be deemed to have come into force with effect from the
31st day of October, 2019.

19
 Explanatory Memorandum: It is hereby certified that no person is being
adversely affected by giving retrospective effect to this notification.
For Details: https://www.incometaxindia.gov.in/communications/notification/notification_94_2019.pdf

13. Lesson
Notification No. 96/2019 Dated 11th November, 2019 4
The Central Government hereby makes the Income tax Amendment (13th
Amendment), Rules, 2019 which shall come into force from the 1st day of
April, 2020.
In the Income-tax Rules, 1962, after rule 11UAB, the following rule shall be
inserted from the 1st day of April, 2020 and shall be applicable for assessment
year commencing on the 1st day of April, 2020 and subsequent assessment
years, namely:
Prescribed class of persons for the purpose of clause (XI) of the
proviso to clause (x) of sub-section (2) section 56.
11UAC.The provisions of clause (x) of sub-section (2) of section56 shall not
apply to any immovable property, being land or building or both, received by a
resident of an unauthorised colony in the National Capital Territory of Delhi,
where the Central Government by notification in the Official Gazettee,
regularised the transactions of such immovable property based on the latest
Power of Attorney, Agreement to Sale, Will, possession letter and other
documents including documents evidencing payment of consideration for
conferring or recognising right of ownership or transfer or mortgage in regard
to such immovable property in favour of such resident.

Explanation.―For the purposes of this rule,─

(a) “resident” means a person having physical possession of property on the

basis of a registered sale deed or latest set of Power of Attorney, Agreement to
Sale, Will, possession letter and other documents including documents
evidencing payment of consideration in respect of a property in unauthorised
colonies and includes their legal heirs but does not include tenant, licensee or
permissive user;

(b)“unauthorized colony” means a colony or development comprising of a

contiguous area, where no permission has been obtained for approval of layout
plan or building plans and has been identified for regularization of such colony
in pursuance to the notification number S.O. 683(E), dated the 24th March,
2008, of the Delhi Development Authority, published in the Gazette of India,
Extraordinary, Part-II, Section 3, Sub-section (ii), dated the 24th March,
2008.’.
For Details: https://www.incometaxindia.gov.in/communications/notification/notification_96_2019.pdf

14. Notification No, 99/2019 Dated 27th November, 2019 Lesson

4
M/s International Centre for Research in Agroforestry, South Asia Regional
Programme, NASC Complex, Delhi (ICRAF) (PAN:- AAATI4803K) has been
approved by the Central Government for the purpose of clause (ii) of sub-

20
 section (I) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules
5C and 5D of the Income-tax Rules, 1962 (said Rules), from Assessment year
2019-2020 onwards in the category of 'Scientific Research Association' ,
subject to the certain conditions.
For Details: https://www.incometaxindia.gov.in/communications/notification/notification_no_99_2019.pdf

15. Notification No.100 Dated 27th November, 2019 Lesson

4
The Central Government hereby notifies M/s National Stock Exchange of
India Limited, Mumbai (PAN: AAACN1797L) as a 'recognized
association' for the purpose of clause (iii) in the Explanation of clause (e) of
the proiso to sub-section (5) of Section 43 of the Income-tax Act, 1961 (43 of
1961) read with sub-rule (4) of Rule 6DDD of the Income-tax Rules. 1962,
subject to fulfilment of certain conditions in respect of trading in derivatives.

For Details: https://www.incometaxindia.gov.in/communications/notification/notification_no_100_2019.pdf

16. Notification No. 103/2019 Dated 13th December, 2019 Lesson

10
The Central Government hereby specifies that the persons who have made a
declaration under sub-section (1) of section 183, but have not made payment of
the tax and surcharge payable under section 184 and penalty payable under
section 185 of the said Act, in respect of the undisclosed income, on or before
the due date notified by the Central Government vide notification number S.O.
1830 (E), dated the 19th May, 2016, (as subsequently amended vide notification
number S.O. 2476 (E), dated the 20th July, 2016), may make the payment of
such amount on or before the 31st day of January, 2020, along with interest on
such amount, at the rate of 1% for every month or part of a month comprised in
the period commencing on the date immediately following the said due date as
so notified and ending on the date of such payment.

This notification shall be deemed to have come into force with effect from the
1st day of June, 2016

For Details: https://www.incometaxindia.gov.in/communications/notification/notification_103_2019.pdf

17. Notification No.105/2019 Dated 30th December, 2019 Lesson

4& 9
The Central Board of Direct Taxes hereby makes the Income-tax (16th
Amendment) Rules, 2019 which shall come into force from 1st day of January,
2020.

In the Income-tax Rules, 1962, after rule 119A, the following rule shall be
inserted, namely:

“119AA. Modes of payment for the purpose of section 269SU. - Every

person, carrying on business, if his total sales, turnover or gross receipts, as the
case may be, in business exceeds fifty crore rupees during the immediately
preceding previous year shall provide facility for accepting payment through
following electronic modes, in addition to the facility for other electronic modes
of payment, if any, being provided by such person, namely:—

21
 i Debit Card powered by RuPay;
ii Unified Payments Interface (UPI) (BHIM-UPI); and
iii Unified Payments Interface Quick Response Code (UPI QR Code)
(BHIM-UPI QR Code),
For Details: https://www.incometaxindia.gov.in/communications/notification/notification_105_2019.pdf

22