1. Cost Inflation Index – Section 48

Cost inflation index for the financial year 2007–08 has been notified at 551.

[Notification No. 214/2007 dated 3rd August, 2007 (211 CTR (St.) 9) (162 Taxman (St.) 54) (292 ITR (St.) 172)]

2. Extension of due date for filing of returns u/s. 139(1)

The due date for filing of income-tax returns required to be furnished by 31st July, 2007 is extended to 16th August, 2007 in the case of income tax assessees in the State of Bihar.

[F. No. 220/4/2007 IT(A)-II dated 31st July, 2007(211 CTR (St.) 25) (292 ITR (St.) 170)} [162 Taxman (St ) 52]

3. New Series of Form for Filing of Income Tax Return

For the assessment year 2007-08, the CBDT have introduced eight Return Forms ITR-1 to ITR-8. Following clarifications are issued in respect of certain issues arising from furnishing the returns in above-mentioned forms:–

1. The report of audit under section 44AB is not to be attached with the return and not to be furnished separately. However, an assessee should get the report of audit from an accountant before the due date of the furnishing of the return. The assessee should retain the report with himself. It may be furnished in original during the assessment proceedings. No penalty under section 271B shall be initiated or levied for not furnishing the tax audit report on or before the due date. However, if the audit report has not been obtained before the due date, provisions of section 271B shall be attracted.

2. These returns are not to be accompanied with any other document including any statutory form or report of audit (other than the report under section 92E) which is otherwise required to be furnished before the due date or along with the return for making any claim. The provisions of the law shall be deemed to have been complied with in respect of the requirement of the filing of the attachments or documents or reports along with the return. No penalty shall be initiated/levied for not furnishing such documents if such documents were otherwise obtained before the specified date. All these documents should be retained by the tax-payers and be furnished in original during the scrutiny proceedings.

3. The report as required under section 92E of the Income-tax Act shall continue to be furnished before the date specified in rule 10E.

4. If a return is furnished under digital signature, the date of such furnishing shall be the date of furnishing the return.

5. In case, the assessee chooses to transmit the data in the return electronically and thereafter submits the verification of the return in Form ITR-V, the date of transmitting the data electronically will be the date of furnishing the return if ITR-V has been filed within fifteen days from the date of transmitting the data electronically.
   
   If Form ITR-V is furnished after fifteen days, the date of filing Form ITR-V shall be taken as the date of filing the return.

6. The e-Return has to be filed at http://incometaxindiaefiling.gov.in. The ITR-V shall be filed at separate counter(s) to be set up for this purpose at each local income-tax office.

7. The ITR-V forms are bar coded and CCITs and CITs must ensure that these forms are handled and stored with care and caution.

8. The return filed electronically shall be processed on priority basis.

[Circular No. 5 of 2007, dated 26th July, 2007 (210 CTR (St.) 73) (292 ITR (St.) 61)} (162 Taxman (st) 49]

4. Income limits for assigning cases to DCsIT/ACsIT/ITOs

Instruction No. 6 of 19th October, 2001 is modified to the extent that limit of Rs. 10 lakhs applicable to metro cities for assigning cases to DCsIT/ACsIT will now apply to Hyderabad also.

If a substantially uneven distribution of workload arises between DCsIT/ACsIT/ITOs due to application of the specified limits in any CIT charge, the CCIT/DGIT may adjust the above limits by an amount of Rs. 5 lakhs to ensure that the workload is equitably distributed after recording reasons.

[Instruction No. 6 of 2007 dated 18th July, 2007 (210 CTR (St.) 76) (162 Taxman (St.) 55)]

5. Monetary limit for filing departmental appeals

The Board’s instruction No. 02/2005 dated 24th October, 2005 has been modified with regard to following from 16th July, 2007:

1. Tax effect specified in para 2 of the above instruction will mean only tax excluding interest.

2. The Board has also decided that cases, where the question of law involved or raised in appeal is/are of a recurring nature to be decided by the Court, should be separately considered on merits without being hindered by the monetary limits.

[Instruction No. 5 of 2007 dated 16th July, 2007 (210 CTR (St.) 76)]

6. Form of application for settlement of cases and intimation to the AO – Rule 44C