Hon’ble Shri. Pramod Kumar, Accountant Member, Kolkata Bench, delivered a presentation on “Substance vs. Form – Judicial Perspective” at a seminar organized by Foundation for International Taxation on 6th to 8th December 2012. In the presentation, the Hon’ble Member has explained how the controversy over whether form should prevail over substance has evolved and how Courts have dealt with the controversy. The issue has been explained in the backdrop of the judgements of the Supreme Court in McDowell & Co Ltd 154 ITR 148, Azadi Bachao Andolan 263 ITR 706 & Vodafone International 341 ITR 1

Vide two Office Orders, both dated 05.12.2012, the Director General of Income-tax (International Taxation) has ordered the transfer and posting of officers in the cadre of Addl/ Joint/ Director/ Commissioner of Income-tax & Deputy /Asst. Director/ Commissioner of Income-tax under various Directorates of International Taxation & Transfer Pricing with immediate effect

Vide Order No. 222 of 2012 dated 4.12.2012, the CBDT has promoted several officers in the grade of Additional Commissioner/ Additional Director of Income-tax to the grade of Commissioner of Income-tax in the pay band of Rs. 37,400 – 67,000 + grade pay Rs. 10,000 with immediate effect

U/s 56(2)(vii)(c), (viia) & (viib), the receipt of shares of a company for a consideration which is less than the aggregate fair market value of the shares is deemed to be “income” to the extent that the fair market value of the shares exceeds the consideration. The formula for determining the “fair market of the shares” is set out in Rule 11UA. Vide Notification No. 52/2012 [f.no. 142/19/2012-so (tpl)]/so 2805(e), dated 29-11-2012, Rule 11UA has been amended to provide, in respect of unquoted shares, a revised method of determining the FMV and to give the assessee the choice of valuing the shares as per the Discounted Free Cash Flow method

Vide Notification dated 30.11.2012, the CBDT has set out the posting policy for posting of officers in the Directorates of International Taxation & Transfer Pricing

Instructions have been issued in the past for expeditious disposal of disciplinary proceedings against delinquent government servants. However, it has been observed that disciplinary proceedings are generally taking a long time which defeats the very purpose of initiating the said proceedings

Vide Order No. 214 dated 21.11.2012, the CBDT has promoted some officers in the grade of Commissioner to the grade of Chief Commissioner of Income-tax and also ordered the transfers & postings of the CCITs