465
June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 53assessment. Issue of invoices without supply
of goods and availing of ITC through such
invoices is an offence under GST. The pros-
ecution for those offences does not depend
upon the completion of assessment.
The High Court of Telangana held that the
power of arrest can be exercised before
completion of assessment for an ‘offence’
committed under GST. Hence, the relief
against the arrest could not be granted to
the petitioner.
lllIncome-tax
Statutory Changes
BDT issues revised guidelines for C
compounding of offences under Direct
Tax LawsCIRCULAR F.NO.285/08/2014-IT (INV.V)/147,
DATED 14-6-2019
The Central Board of Direct Taxes (CBDT)
has issued Guidelines for Compounding of
Offences under Direct Tax Laws, 2019 in su-
persession of earlier Guidelines, including the
Guidelines vide F.No.285/3512013 IT(Inv.V)1108
dated 23rd December, 2014.
These Guidelines shall come into effect from
17-6-2019 and shall be applicable to all ap-
plications for compounding received on or
after the aforesaid date. The followings are
key guidelines issued:
(a) The offences are classified into two parts
(Category ‘A’ and Category ‘B’) for the
limited purpose of Compounding of
Offences. Category A includes offences
related to failure to deduct or pay tax/
TDS, failure to furnish ITR, etc., whereas
category B includes offences like, wilful
attempt to evade tax, Failure to produce
accounts and documents, etc.(b) Category ‘A’ offence cannot be compounded
on more than three occasions.
(c) The compounding application may be filed
suo motu at any time after the offence(s)
is committed irrespective of whether it
comes to the notice of the Department
or not (subject to conditions).
(d) Any offence which has bearing on any
offence under the Black Money (Undis-
closed Foreign Income and Assets) and
Imposition of Tax Act, 2015 cannot be
compounded.
(e) Any offence which has bearing on any
offence under the Benami Transactions
(Prohibition) Act, 1988 cannot be com-
pounded.t-off of loss against deemed income Se
u/s 115BBE was allowed till AY 2016-
17: CBDTCIRCULAR NO. 11/2019, DATED 19-06-2019
Section 115BBE of the Income-tax Act, 1961
provides that in case total income of assessee
includes any income referred to in section(s)
68/69/69A/69B/69C/69D, no deduction in
respect of any expenditure or allowance
or set-off of any loss shall be allowed toWEEKLY REVIEW