Foreign Exchange derivative transactions entered into by the corporate sector in India have witnessed a substantial growth in recent years. This combined with extreme volatility in the foreign exchange market in the last financial year is reported to have resulted in substantial losses to an assessee on account of trading in forex-derivatives. A large number of assesses are said to be reporting such losses on ‘marked to market’ basis either suo motu or in compliance of the Accounting Standard or advisory circular issued by the Institute of Chartered Accountants. The issue whether such losses on account of forex-derivatives can be allowed against the taxable income of an assessee has been considered by the Board. In this connection, I am directed to say that the Assessing Officers may follow the guidelines given below
Author: editor
Filing SLPs: Dept Takes Stern View & Pins Responsibility on CIT To Avoid Delay
Pursuant to the public criticism of the Finance Minister at the mindless litigation undertaken by the department causing loss of crores of rupees to the nation (see Fret Not, Mr. FM, About Appeal-Filing Mania & Grasim superseded .. but whither accountability?), the CBEC issued a Circular to streamline the processing of departmental litigation before the Courts and Tribunal. The Directorate General of Income Tax (Legal & Research) has now issued a directive to regulate the filing of Special Leave Petition (SLPs) before the Supreme Court
Transfer of Hon’ble Members (Oct 2010)
In pursuance of the consultations of the collegium of the Income Tax Appellate Tribunal consisting of the President and two senior-most Vice-Presidents, the following Members of the Tribunal are hereby transferred in public interest, in the same capacity, to the Bench/es of the Income Tax Appellate Tribunal as shown against their names with effect from the afternoon of 25th October, 2010
ITAT Special Bench cannot hear sub-judice matters – Tivoli Reference Withdrawn
I agree with the point made by the Members that it is not proper to continue with the Special Bench when the same issue is pending adjudication for the earlier years before the Hon’ble Bombay High Court. I am of the humble opinion that such continuance will not be in conformity with judicial discipline, propriety and decorum. The appropriate course will be to disband the Special Bench and allow the regular Bench to decide the issues in accordance with law
Circular: Streamlining Departmental Litigation
editor
Posted in All Information, Dept. Representatives, ITAT related, Pendency, Supreme Court/High Court related
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To address the scathing criticism of the Finance Minister about the mindless litigation undertaken by the Department, the CBEC has issued detailed instructions to streamline the filing of appeals by the department. The CBEC has directed the officers to scrupulously follow the instructions contained in the circular and threatened that deviations would be viewed seriously.
Transfers of Commissioners / Directors of Income-tax (Sept 2010)
The following Order No. 123 of 2010 dated 21st September 2010 has been issued by the Central Board of Direct Taxes to direct transfers / postings of officers in the grade of Commissioner of Income-tax & Director of Income-tax
S. 80HHC vs. 115JB Ajanta Pharma Reversed By Supreme Court
In CIT vs. Ajanta Pharma 318 ITR 252 the Bombay High Court held (reversing the Special Bench judgement in DCIT vs. Syncome Formulations 292 ITR (AT) 144)) that the “sunset clause” of s. 80HHC (1B) applies to s. 115JB as well. This judgement has been reversed by the Supreme Court today (9.9.2010). It has been held that MAT companies are not subject to the limitations of s. 80HHC (1B)
s. 32(1)(ii) Techno Shares Reversed By Supreme Court
In CIT vs. Techno Shares & Stocks 323 ITR 69 the Bombay High Court considered the definition of an “intangible asset” in s. 32(1)(ii) and held that a stock exchange card was not an intangible asset eligible for depreciation. This judgement has been reversed by the Supreme Court today (9.9.2010). It has been held that a stock exchange card is a “license” and eligible for depreciation u/s 32(1)(ii).
S. 195 Samsung Electronics Judgement Reversed By Supreme Court
The Supreme Court today (9.9.2010) pronounced judgement in a batch of appeals challenging the judgement of the Karnataka High Court in CIT vs. Samsung Electronics 320 ITR 209 where it was held that u/s 195 the payer was not entitled to consider whether the payment was chargeable to tax in the hands of the non-resident recipient or not
ITAT “High Tea” Function
The ITAT Bar Association organized a “High Tea” function on 27th August 2010 (Friday) on the occasion of the Vice Presidents’ conference which was held on 26th, 27th and 28th of August 2010. On behalf of the ITAT Bar Association Shri Dinesh Vyas, President of the Association congratulated the new team and wished them all success. Hon’ble President Shri R. V. Easwar assured that the Hon’ble Members would continue to work sincerely and honestly to maintain the dignity and honour of the ITAT as one of the finest judicial institutions of our country. A large number of members of the Association participated in the function and wished the Hon’ble President, Vice Presidents and Members all success in their endeavours
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