In Topman Exports vs. ITO 318 ITR 87 (Mum)(SB)(AT) the Special Bench held that for purposes of s. 80HHC only the “profit” on sale of DEPB entitlements (i.e. the sale value less the face value) was required to be considered. In an appeal by the department, this judgement has been reversed by the Bombay High Court today, 29th June 2010 in CIT vs. Kalpataru Colours and Chemicals.

Hon’ble Justice Ferdinho I. Rebello of the Bombay High Court has been appointed Chief Justice of the Allahabad High Court.

Justice Rebello has been party to several landmark income-tax judgements such as Narang Overseas 295 ITR 22 (Tribunal’s power to stay demand beyond 365 days), SET Satellite 307 ITR 205 (Dependent Agent PE), Oman International 313 ITR 128 (Bad Debts) and Star Television 317 ITR 66 (Constitutional validity of s. 245HA).

The learned Judge is an active participant in Seminars. He delivered a speech titled India Advantages – Vision 2020 at the Inaugural Function of 1st International Tax Conference.

We wish the learned Judge good luck in his assignment as Chief Justice of the Allahabad High Court.

1. The draft Direct Taxes Code (DTC) along with a Discussion Paper was released in August, 2009 for public comments. Since then, a number of valuable inputs on the proposals outlined in these documents have been received from a large number of organisations and individuals. These inputs have been examined and the major issues on which various stakeholders have given their views have been identified. This Revised Discussion Paper addresses these major issues. There are a number of other issues which have been raised in the public feedback, which, though not part of this Discussion Paper, will be considered while finalising the Bill for introduction in Parliament. The issues which this Revised Discussion Paper addresses are:

i. Minimum Alternate Tax (MAT) – Gross assets vis-a-vis book profit.

ii. Tax treatment of savings – Exempt Exempt Tax (EET) vis-a-vis Exempt Exempt Exempt (EEE) basis.

iii. Taxation of income from employment – Retirement benefits and perquisites.

iv. Taxation of income from house property.

v. Taxation of capital gains

vi. Taxation of non-profit organisations

vii. Special Economic Zones – Taxation of existing units

viii. Concept of Residence in the case of a company incorporated outside India.

ix. Double Taxation Avoidance Agreement (DTAA) vis-a-vis domestic law.

x. Wealth Tax.

xi. General Anti Avoidance Rule (GAAR).

Hon’ble Shri. R. V. Easwar has been appointed the officiating President of the Income Tax Appellate Tribunal and has assumed charge at Mumbai on June 4, 2010.

We Wish Shri. Easwar good luck in his new posting.

Hon’ble Shri. Vimal Gandhi, President of the Tribunal retired today, 3rd June 2010. Shri. Gandhi practiced as an Advocate from 1970 to 1985 and joined the Tribunal as a Judicial Member on 16.9.1985. He served as Vice President from 6.8.1997 to 30.10.2003 and was appointed President on 31.10.2003. He served as President for six years and seven months. When Mr. Gandhi was appointed President, the pendency of matters in the Tribunal was 180,666 and this has been brought down to 47,000 as on 1.4.2010. Mr. Gandhi started the system of refresher course for the Members of the ITAT. He was also instrumental in allotting the library premises to the Bar Association, Mumbai. Mr. Gandhi represented the Tribunal at national and international seminars of repute including at the United Nations where he made a presentation of successful practices at the ITAT. He also formulated, for the benefit of Members, a Code of Conduct and broad guidelines on how judgements should be written.

Mr. Gandhi has been party to several landmark judgements such as Wallfort Shares & Stock Brokers 96 ITD 1 (Mum) (SB), Aztec Software 107 ITD 141 (Bang) (SB) and Hindustan Mint 119 ITD 107 (Del) (SB) among others.

We wish the Hon’ble President good luck in his future endeavours.