October 9, 1994

The Central Board of Direct Taxes (CBDT) has made a comprehensive review of all existing instructions regarding compounding of income tax offences under the direct tax laws and issued new guidelines to replace them. The guidelines issued on September 30, 1994, come into effect immediately. In a communication sent to all Chief Commissioners of Income Tax (CCITs) and all Directors General of Income Tax1 (DGIT), the Department of Revenue has stated that the existing guidelines for compounding of offences dated March 11, 1980, have been reviewed in the light of past experience and future needs. The revised guidelines will ensure fairness and objectivity in the compounding of offences, reducing pendency of prosecution before the courts and remove unintended hardship to assessees in deserving cases.

Oil prices surge

Crude oil prices hit an eight-week high on Friday but then fell back as Iraqi troops moved toward the border of Kuwait in an apparent angry gesture against United Nations trade sanctions. Crude oil for November delivery closed up 1 cent a barrel at $18.26 on New York’s Mercantile Exchange, after having soared as high as $18.70 in the morning. “Anytime there are tensions in the Middle East you don’t stop and think; you buy, then think,” said Mr. Vahan Zanoyan, senior director of Petroleum Finance in Washington. Traders later started taking profits. US defence officials said large numbers of Iraqi troops were moving toward the border with Kuwait. “There are large numbers of troops involved. It could be a move by (Iraq’s President) Saddam Hussein to intimidate the UN to drop sanctions against Iraq. But we don’t know that yet,” said one of the defence officials.

Related Topics
comment COMMENT NOW