Page 12 - Banking Finance June 2022

ROUNDUP

crore to set up a new manufacturing Pointing out that cryptocurrencies over Rs 50 lakh and if a proper process
facility in Haryana, its third in the state have the potential to be a medium of is followed.
and spread over an 800-acre area, as exchange and replace the rupee in fi-
For AYs 2016-17 and 2017-18, the
the country's largest carmaker looks to nancial transactions both domestic and
CBDT has clarified in its instructions
add a fresh 10 lakh units to its capac- cross border, central bank officials said
that fresh notices can be issued with
ity from the location over the coming these currencies "can replace a part of
approval of the higher officers, as the
years. monetary system it will also under-
time limit of three years has not
mine the RBI's capacity to regulate the
The company, which currently has an lapsed.
flow of money in the system".
annual installed capacity of 22.5 lakh
Dhruva Advisors partner Ajay Rotti
units across its existing two plants in
told, "CBDT's issuance of these instruc-
Haryana (Gurgaon and Manesar) and CBDT to I-T: Do not re-
tions is a welcome move."
one in Gujarat (owned by parent
open sub-Rs. 50L cases for
Suzuki), will start with an initial capac-
AYs '14-16 Over 167,000 businesses
ity of 2.5 lakh units at the new loca-
tion at IMT Kharkhoda in Sonipat dis- The Central Board of Direct Taxes set up in FY 22, the high-
trict from 2025. This will thereafter be (CBDT) has issued exhaustive instruc-
est in 3 years
scaled up to 10 lakh units progres- tions to its income tax (I-T) cadre on
sively, as the market expands. reopening of cases to implement the The number of businesses set up in the
year ended 31 March rose to the high-
recent Supreme Court order. These
"The first plant with a manufacturing
instructions will keep small cases relat- est in three years, led by the services
capacity of 2.5 lakh vehicles per annum
ing to some past years from being re- sector, ministry of corporate affairs
is expected to be commissioned in
2025, subject to administrative ap- opened. data showed, signaling a steady rise in
entrepreneurial activity despite the
provals," the company said. As had been reported by TOI, accord-
disruptions caused by the pandemic.
ing to this order, nearly 90,000 re-as-
Cryptos can lead to sessment notices that were issued by As many as 167,076 companies were
dollarisation of economy the I-T department after April 1, 2021 set up in FY22, a 7.5% increase from
the 155,377 companies created in the
under the provisions of the un-
Cryptocurrencies can lead to
amended section 148 were held valid. previous year, according to data com-
"dollarisation" of a part of the
piled by the corporate affairs ministry.
economy which would be against However, the order provided that safe-
Around 122,721 companies were set
India's sovereign interest, top officials guards under the new provisions intro-
up in FY20.
of the RBI have told a parliamentary duced by the Finance Act, 2021 should
panel, according to sources. be followed. The steady rise in entrepreneurial ac-
tivity points to improving sentiment
Briefing the Parliamentary Standing To begin with, CBDT's instructions
about business prospects and confi-
Committee on Finance chaired by state that notices cannot be issued in
dence that economic growth will re-
former minister of state for finance cases for assessment years (AYs) 2013-
bound despite the pandemic.
Jayant Sinha, top officials of the RBI, 14, 2014-15 and 2015-16 if the income
including its governor Shaktikanta Das, escaping assessment is likely to be less The increase in the number of new
clearly expressed their apprehensions than Rs 50 lakh. businesses is also a good sign for the
about cryptocurrencies and said these economy and the jobs market.
In cases of income that have escaped
pose challenges to the stability of the "The growth in new registrations has
assessment, under section 148 (old
financial system, sources told PTI. slowed down in FY22. This was ex-
regime) the I-T officer could reopen
"It will seriously undermine the RBI's cases dating back to six years. Under pected as the economy opened up and
capacity to determine monetary policy section 148A (introduced by the Fi- companies started operating, there
and regulate the monetary system of nance Act, 2021), cases dating back to were job openings across sectors," said
the country," a member of the panel 10 years can be reopened only if the Madan Sabnavis, chief economist at
quoted RBI officials as saying. income that has escaped assessment is Bank of Baroda.
12 | 2022 | JUNE | BANKING FINANCE