Section 43B actual payment rule: sales tax converted into government permitted loans qualifies for deduction in year conversion permitted.
For deferred sales tax schemes, Government Orders that deem deferred collections as collected and disbursed are treated as effecting discharge of the statutory liability for the purposes of section 43B, so sales tax liabilities converted into loans may be allowed as a deduction in the previous year in which such conversion is permitted; conversely, interest converted into loans is deductible only when actually paid and, if merged with principal, the interest component must be determined proportionately.

Sufficient cause for delay: disturbed conditions in Kashmir permit condonation of late section 184 registrations and renewals.
The Board determines that the disturbed conditions in the Kashmir Valley constitute sufficient cause to justify condonation of delays in filing belated applications and declarations under section 184(4) and section 184(7); assessing officers are directed to admit and condone such filings for assessees who reside in or have their principal place of business in the Valley and are assessed or assessable there, irrespective of where returns were filed.

Tax exemption for relief bonds: interest exempt and wealth and gift tax concessions affirmed for notified Relief Bonds.
Interest on 9% Relief Bonds, 1987 is exempt from income-tax for individuals and Hindu undivided families where the Central Government notifies such bonds; the 17-11-1987 notification renders the Bonds specified for exemption under income-tax, wealth-tax and gift-tax laws, with wealth-tax exemption conditioned on ownership from subscription or for at least six months ending with the valuation date and gift-tax exemption for initial subscribers subject to the prescribed aggregate ceiling.

Construction classification for allotment of flats by cooperative societies where schemes mirror DDA applies to sections 54 and 54F.
If the terms of the allotment and construction schemes of a cooperative society or other institution are similar to the scheme features identified in prior guidance regarding the Self Financing Scheme of the Delhi Development Authority, such allotments may be treated as cases of construction for application of the capital gains reinvestment provisions.

Recovery of tax demand: AOs must pursue dues promptly; stays permitted only for valid, limited reasons.
Assessing Officers and TROs are primarily responsible for prompt recovery of tax demands except where demands are not due, stayed by a court/tribunal/settlement commission, proposed for write-off, or stayed under prescribed guidelines. Stay petitions must be decided quickly and only for valid reasons, limited to disputed amounts; AOs must issue speaking orders using the statutory expression treating the assessee as not in default subject to conditions. AOs may impose security, lump-sum or instalment payments (to conclude within eighteen months), undertakings to cooperate, review rights, and refund adjustments, and must monitor compliance and withdraw stay if breached.

Investment compliance for charitable trusts: exemption requires disinvestment from prohibited modes by the extended deadline.
Allowance of exemption for charitable trusts requires verification that investments held in prohibited modes were disinvested by the extended cut off; failure to have converted such investments by that deadline warrants withdrawal of previously granted exemptions through appropriate assessment remedial mechanisms.

Assignment of managing directors' tax cases to assessing officers with jurisdiction over the company clarified and restricted.
Only the cases of managing, working and whole time directors of companies are to be assigned to the Assessing Officer having jurisdiction over the case of the company; directors and senior executives generally are excluded from that special assignment.

Time limit for SLP proposals extended, requiring earlier submission and certified copies promptly, with accountability for unexplained delays.
The Board revises the internal time limit for receipt of duly completed proposals for filing Special Leave Petitions to sixty days before limitation, citing the short SLP window and judicial criticism of unexplained delay. Chief Commissioners and Directors-General must ensure compliance; standing counsel must seek certified copies from the High Court promptly, within three days of pronouncement, and forward certified copies with opinions to the regional office. Belated proposals must include comprehensive reasons covering the period from the High Court judgment to submission, and responsibility for delays may be fixed.

Revenue deduction for non interest telephone deposits allowed, with subsequent refunds treated as taxable income under statutory provision.
Payments under the Tatkal Telephone Deposit Scheme that constitute a non interest, not fully refundable deposit may be allowed as revenue expenditure and deducted in the year of payment; any portion later refunded on surrender or otherwise must be treated as the assessee's income in the year of refund and brought to tax.

Regulatory cooperation between tax authorities and securities regulator: income-tax authorities must report unusual broker transactions to enable market regulation.
Income-tax authorities encountering unusual or irregular transactions in the securities market are required to notify the Securities and Exchange Board of India to assist SEBI in its regulatory role and in preventing fraudulent or unfair trade practices. SEBI's mandate to regulate stock exchanges and protect investors includes oversight of trading practices and prevention of excessive speculation; disclosures by income-tax authorities enable SEBI to investigate and address market irregularities.

Belated refund claims admissible where excess tax deductions or advance payments satisfy specified eligibility and supervisory conditions.
Authorises the Assessing Officer to admit and dispose of otherwise time barred refund claims arising from excess tax deducted/collected at source or advance tax payments, subject to conditions: the returned income must not be a loss claimed for carry forward, the claim must not be supplementary to an original assessment, and the income must not be assessable in the hands of another person; supervisory approvals are required where specified and non hardship cases may be referred to the Board.

Section 43B compliance: Assessing officers may permit rectification to allow deductions when timely payment is later evidenced.
Where payments covered by the first proviso to section 43B were in fact made on or before the due dates but evidence was not furnished with the return, Assessing Officers may entertain applications under the rectification procedure to revise intimation under section 143(1)(a) or orders under section 143(3) and decide the allowance of the deduction on merits; an earlier Board clarification to the contrary is modified.

Deemed service rule: limitation to file appeal begins after expiry of the three-month rectification period under the proviso.
For limitation purposes, an intimation under the assessment intimation provision is deemed served on the day following the expiry of the rectification period in the rectification proviso where the Assessing Officer has not rectified the mistake; the thirty-day limitation to file an appeal under the appeals limitation provision runs from that deemed-service date.

Taxation of fish farming: business income estimation accepted to encourage compliance, prawn farming excluded.
Income from fish farming is business income, not agricultural income. For assessee without accounts, taxable income may be accepted at 4,000 per acre of water spread per year, with water spread estimated at 70% of total land; disclosures on this basis for assessment year 1993-94 should not attract survey or search. Regularly accounted farms are assessed on their accounts. The estimation applies to inland freshwater ponds (including saline inland tanks) but excludes prawn farming; it is a method of estimation under the head "Profits and Gains of Business or Profession" and does not affect set off rules or justify surveys for unrelated activities.

Cost of land included in residential house cost for capital gains deduction when plot purchase and construction are timely completed.
When an assessee constructs a residential house within the statutory period, the cost of the land is an integral part of the cost of the house; amounts appropriated towards purchase of a plot and construction thereon may be aggregated to determine the deduction under the capital gains exemption, provided acquisition of the plot and construction are completed within the prescribed time limits.

TDS on contractor payments requires specified deductions, certificates, TAN quoting and timely deposits with penalties for noncompliance.
Deduction of tax at source under section 194C applies to payments to resident contractors and sub contractors for carrying out any work, including service, transport, labour and works contracts; the payer must deduct tax at source at the prescribed rates at the time of credit or payment, subject to surcharge adjustments. Exemption applies where the contract consideration does not exceed the specified threshold, and an Assessing Officer may issue a certificate on application (Form No. 13C) directing lower or no deduction. Deductors must timely deposit sums, issue Form 16A certificates, quote TAN and file Form 26C annual returns, with penalties and interest for non compliance.

Treatment of securities as stock-in-trade or investment: assessing officers must determine classification under facts and central bank guidelines.
Whether securities held by banks are stock-in-trade or investment is a question of fact; Assessing Officers must determine classification in each case based on facts and the Reserve Bank's accounting and classification guidelines. The Supreme Court's earlier decision addressed the capital/revenue character of consideration paid and did not resolve the broader stock-in-trade versus investment question.

Concessional tax for long-term capital gains on foreign-currency share sales requires careful scrutiny when issuing remittance NOCs.
Concessional tax on long-term capital gains applies to transfers of shares purchased in foreign currency, while short-term gains are excluded from this treatment. Reports indicate remittances of sale consideration were at times allowed without deduction of tax on capital gains after assessees claimed losses. Assessing officers must exercise due care, verify claims, and ensure proper tax deduction before issuing No Objection Certificates for remittance of sale consideration of such shares.

TDS certificate form change-Form 16B discontinued and Form 16A mandated for specified withholding provisions and reporting.
Form 16B is discontinued and replaced by Form 16A for issuance of certificates for tax deducted at source under the listed provisions of the Income-tax Act. Form 16 continues for salary deductions under section 192. Tax deductors must issue certificates on their stationery in prescribed pro forma without serial numbers, may convert existing Form 16B stocks into Form 16A, and must furnish certificates and annual returns within timelines under rule 31 and rule 37; failure attracts penalty under section 272A.

Deductibility of wealth-tax liability restricted: statutory personal liability not deductible when computing taxable net wealth.
The Board clarifies that wealth-tax liability is a personal statutory liability, not a debt incurred in relation to assets liable to wealth-tax; therefore, following the amendment to the definition of debts allowable for computing net wealth effective from assessment year 1993-94, wealth-tax liability is not deductible in computing the taxable net wealth of the assessee.