1. Tax-payers are advised not to use Old Return Forms

CBDT has advised all tax-payers to wait for the notification of the new return forms for the assessment year 2007-08 and not to file their returns of income in the old forms.

[PIB Press release dated 30th March, 2007 (209 CTR (St.) 8)]

2. Monitoring of scrutiny assessments by Range Heads

In the Instruction No. 2/2006, dated 27th April, 2006 it was stated that the monitoring of cases under scrutiny by the Range Heads shall be done in accordance with the provisions of section 144A of the Income-tax Act.
Instances have been brought to the notice of the Board where, the Assessing Officers have taken a stand that the Range Heads could not and should not call for records of cases except for the purpose of issue of instructions under section 144A of the Income-tax Act.

It is hereby clarified that these instructions do not in any way restrict the inherent powers of the Range Heads to administratively supervise the work of their subordinate officers by looking into the records.

[Instruction No. 1 of 2007, dated 16th March, 2007 (208 CTR (St.) 297)]

3. Income-tax (Third Amendment) Rules, 2007

In the Income-tax Rules, 1962, in Appendix II, Form No. 16, Form No. 16A and Form No. 27D are substituted,

[Notification No. 83 of 2007, dated 26th March, 2007 (208 CTR (St.) 306) (159 Taxman (St.) 309) (290 ITR (St.) 10)]

4. Grant of interest on refunds – Section 244A
   
   Under section 244A of the Income-tax Act, 1961, interest is to be granted simultaneously with the refund and there should normally be no reason to grant refund without adding the entitled interest. In the case of Sandvik Asia Ltd. vs. CIT (280 ITR 643 (SC)) the Hon’ble Supreme Court, adversely commented upon the delay in grant of interest on refund and awarded compensation to the assessee for the said delay by the Department. While taking this view, the Supreme Court referred to the judgment of D. J. Works vs. Dy. CIT (195 ITR 227 (Guj.)) wherein the High Court had held that though there is no specific provision for payment of interest on interest, but if interest on the refund is wrongfully retained, interest on interest would be payable. The Court further held that even assuming that there was no provision in the Act for payment of compensation, on general principles, compensation was payable to the assessee for the delayed payment of interest. The Court also recommended that action be initiated against the officers responsible for the delay.

It is necessary to remind all Assessing Officers that while granting refund to the assessee, care should be taken to ensure that any interest payable under section 244A on the amount of refund due should be granted simultaneously with the grant of refund and there should, in no case, be any omission or delay in the grant of such interest. Failure to do so will be viewed adversely.

[Instruction No. 2 of 2007 dated 28th March, 2007 (209 CTR (St.) 17), (160 Taxman (St.) 21)]

5. National Tax Tribunal (Amendment) Bill, 2007

National Tax Tribunal (Amendment) Bill, 2007 is published.

[(159 Taxman (St.) 284) (290 ITR (St.) 72)]