The CBDT has issued Office Order No. 127/2013 dated 14.06.2013 stating that the President of India has appointed Ms. Sudha Sharma as Chairperson of the Central Board of Direct Taxes (CBDT) in the pay scale of Rs. 80,000 (fixed) with the status of Special Secretary to the Government. Upon taking charge, Ms. Sudha Sharma addressed a letter in which she pointed out that that the guiding principles of “non-intrusive” and “non-adversarial” tax administration as laid down by the Finance Minister has to be followed by the department in its day-to-day working. She also emphasized that the department has to create an environment for voluntary compliance. She pointed out that as tax collectors of the country, the tax department has a pivotal role to play in national growth and has to achieve the huge target of budget collection. She emphasized that the potential for tax collection is much higher given that there is a base of only about 3.5 crore assesses, a mere 2.9% of the national population, of which only 42,800 declares annual income over Rs. 1 crore. She stated that while the endeavour would be to promote voluntary compliance and provide hassle-free service to the honest tax payers, focus would need to be kept on non-filers and stop-filers in order in order to enhance the tax base and augment tax collection. She also stated that the department is aiming at achieving a tax regulation regimen in India which can match the best in the world.

We wish Dr. Sudha Sharma good luck in her new posting.

Vide Order No. 106 of 2013 dated 14.06.2013, the CBDT has ordered the transfer & posting of several officers in the grade of Commissioner of Income-tax with immediate effect.

The United Nations has released a publication titled “Practical Manual on Transfer Pricing”. The Manual contains valuable discussion on a number of important topics. For instance, there is a detailed discussion on the types of transfer methods available (such as CUP, TNMM etc) and their respective merits and demerits. Practical examples and case studies have also been given to explain in what circumstances a particular method is suitable. There is also detailed discussion on how comparables should be selected and how a comparability analysis should be conducted. There is also detailed discussion on the transfer pricing implications of marketing intangibles (trade marks, technical know-how etc) which becomes very relevant in the light of L.G.Electronics vs. ACIT 140 ITD 41 (SB). There is also a write-up on the law & practices being followed in India and other countries.

The Manual will prove invaluable for all professionals seeking in-depth understanding of transfer pricing concepts.

Vide Order No. 92 of 2013 dated 31.05.2013, the CBDT has ordered the transfer/ posting of several officers in the grade of Chief Commissioner of Income-tax with immediate effect.

Vide Order No. 94 of 2013 dated 31.05.2013, the CBDT has ordered the transfer/ posting of several officers in the grade of Deputy/ Assistant Commissioner of Income-tax with immediate effect.

Vide Order No. 86 of 2013 dated 24.05.2013, the CBDT has ordered the transfers/ posting of several officers in the grade of Deputy/ Assistant Commissioner of Income-tax with immediate effect.

Vide Order No. 87 of 2013 dated 24.05.2013, the CBDT has ordered the transfers/ posting of several officers in the grade of Additional/ Joint Commissioner of Income-tax with immediate effect.

The Income-tax department has released a publication titled “Assessment of Charitable Trusts and Institutions“. The publication explains the legal provisions and the procedural requirements for claiming exemption under the Income-tax Act, 1961 for charitable activities. Apart from explaining the concept of ‘Charitable Purposes’, the publication deals with the procedure for registration, assessment, denial of exemptions, incentives given to the donors of the trust etc. The publication also deals with important issues in a FAQ format. All amendments made by the Finance Act, 2012 are incorporated in the publication. The forms which have to be used by the assessees in order to avail of the benefit of various provisions are compiled as Annexures to the publication. The publication will prove very useful for all taxpayers and tax professionals.

The Income-tax department has released a publication titled “Appeals And Procedures For Filing Appeals“. The publication seeks to educate taxpayers about the legal provisions and procedures relating to filing appeals before the Commissioner of Income-tax (Appeals) and the Tribunal. The publication lists out the Forms in which the appeal has to be filed, the manner in which it has to be signed, the fees payable etc. The entire law and procedure is explained in lucid language. The guidelines laid down by the Appellate Tribunal for the guidance of the assesses and their representatives on how to conduct appeals is also included in the publication. The publication will prove useful as a ready-referencer for taxpayers and tax professionals

The CBDT has issued a publication titled “Advance Pricing Agreement Guidance With FAQs“. The publication seeks to increase the awareness of the taxpayers about the “Advance Pricing Agreement Scheme” which was notified on 30.08.2012 and its implementation. The publication explains the procedure to be followed by a taxpayer and the tax authorities before a taxpayer can enter into an APA. It also provides guidance on types of APAs, advantages of APAs etc.

The Finance Bill 2013 received the assent of the President on 10th May 2013 and has been enacted as the Finance Act 2013 (No. 17 of 2013).