Income Tax Department not to appeal against the Bombay High Court order in the Vodafone transfer pricing case

In a decision aimed at avoiding "fruitless litigation"  and improving the investment sentiment by allaying investors' concerns on tax issues, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday took a decision not to challenge the judgment of the Bombay High Court that said that Vodafone was not liable to pay a tax demand of Rs. 3,200 crore in a transfer pricing case. 

  

The decision follows the advice given by Attorney General Mukul Rohatgi to the Income Tax Department not to prefer an appeal to the Supreme Court against the judgment of the Bombay High Court in the 'Vodafone transfer pricing case'. 

“The decision to not appeal against the Bombay High Court ruling that was in favour of Vodafone sends out the message to global investors whose confidence in India was shaken in the past… Prime Minister Modi wants it to be known that his government will take decisions that will be fair, transparent and within four corners of the law,” said Union Telecom Minister Ravi Shankar Prasad after the meeting of the Cabinet. 

The Bombay High Court in its October 10, 2014 order had given relief to the UK-based mobile service provider by ruling that it is not liable to pay an income tax demand of Rs 3,200 crore in a case relating to transfer pricing.

5 new posts of ASG's for High Courts of Punjab and Haryana, Patna, Jharkhand, Karnataka and Gujarat

The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved the creation of five new posts of Additional Solicitor General, one each in the High Courts of Punjab and Haryana, Patna, Jharkhand, Karnataka and Gujarat.

  

Cabinet meeting chaired by PM Modi : a file picture

According to a press release by the Press Information Bureau, the decision will strengthen the litigation machinery to represent the central government as a whole and specifically in these courts: “This will also help in conduct of litigation on behalf of Union of India efficiently and effectively.”

“The creation of these posts will also facilitate transaction of business in accordance with procedures and enable assigning of functions to legally trained persons. It will result in greater accountability of government departments to curb frivolous litigation and lessen the burden of government cases in these Courts,” says the press release explaining the rationale behind the creation of the new posts of ASG's.

Cabinet approves amendments to be made to the Lokpal and Lokayuktas Act

The Union Cabinet chaired by the Prime Minister, Mr. Narendra Modi, today gave its approval for amending the Lokpal and Lokayuktas Act, 2013 (1 of 2014) and the Delhi Special Police Establishment Act, 1946 (25 of 1946) and for introduction of a Bill in Parliament during the winter session of Parliament, on the lines of the Lokpal and Lokayuktas and other related law (Amendment) Bill, 2014 with such modifications or changes of drafting and consequential nature, if any, as may be considered necessary. 

 

File Picture: Cabinet meeting chaired by PM Modi

A press note released by the Press Information Bureau after the cabinet meet says "The proposed amendments will address some crucial deficiencies noticed in both the Acts: as under:

a) as regards the composition of the Selection Committee for selection of the Chairperson and Members of Lokpal, by providing, inter alia, that when there is no Leader of Opposition In the House of the People, recognized as such, the expression "Leader of Opposition" shall include the "Leader of the Largest Party in Opposition of the Government" in the Lok Sabha;

b) for providing for qualifications for appointment of Director of Prosecution in the CBI and for his functional independence.

The proposed amendments will also address other deficiencies in the Lokpal and Lokayuktas Act, 2013"

The Act, as now proposed to be amended, seeks to remove the deficiencies and provide for the alternative of Leader of Single Largest Opposition Party in the Lok Sabha in the event there is no Leader of Opposition in the Lok Sabha, for being represented on the Selection Committee for appointments of Chairperson and Members of. Lok Pal. The amendments will, inter alia, also ensure functional independence to the Director of Prosecution under the Delhi Special Police Establishment (DSPE) Act. The amendments seek to synchronize the provisions of the Lokpal and Lokayuktas Act with the existing regulating Acts, Rules and Regulations in respect of declaration of assets and liabilities by various categories of public servants and establish appropriate mechanisms to obtain and publish such information received from public servants, for the benefit of the public. The proposed amendments will, also ensure functional independence to the Director of Prosecution under the DSPE Act.

Cabinet clears amendments to be brought to the Indian Trusts Act, 1882

The Union Cabinet on Friday approved amendments to Sections 20 and 20A of the Indian Trusts Act, 1882. 

(The Indian Trusts (Amendment) Bill, 2014 may be introduced in the ongoing session of Parliament)

Section 20 deals with the investment of trust money and restricts the trustees to investing this money only in the prescribed securities including “promissory notes, debentures, stock or other securities of any state government or of the central government or of the United Kingdom of Great Britain and Ireland”.

Section 20A prescribes the limits of the power of the trustee to purchase redeemable stock at a premium.

According to a press statement issued by the Cabinet, “the amendments are intended to provide the trustees greater autonomy and flexibility to take decisions on investment of trust money. This would enable the Central Government to notify securities or class of securities, for investment by trusts and to remove the outdated provisions occurring in section 20 of the Indian Trusts Act, 1882”.

The Indian Trusts (Amendment) Bill, 2014, proposing changes to section 20 and 20A looks set to be introduced in the current session of Parliament.