CBDT hits back at ToI report

New Delhi, May 22 (UNI) The Central Board of Direct Taxes (CBDT) today expressed it's dissapointment over a report that appeared in an English daily today based on the opinion of a tax consultant.

CBDT said the statement in the Times of In dia (ToI) today that the investor would have to live at the mercy of the tax officials is totally incorrect and inappropriate.

The board asserted that whether a person buying and selling shares or securities, is a trader or investor is a question of fact and the Assessing Officer would have to take note of the totality of the facts and circumstances before reaching a conclusion.

It reminded that in 1989 guidelines were issued for the guidance of assessing officers. Since then there has been a lot of judgements and culling out the principles from these judgements, the guidlines were updated and a draft circular was posted on the website.

The draft circular does not refer to FIIs and does not purport to deal with any case or class of cases. The body said that the draft circular was put out to provide greater clarity for the guidance of assesing officers and it rejected the opinion of tax consultants that the draft instructions are ambiguous.

UNI MP ARB KN2005