Less discretion needed: Transfer-pricing proposal may lead to litigation

Indeed, in some cases additional discretionary powers will be granted by some proposed changes.

A parliamentary select committee has submitted a report on the new Income Tax Bill, which is meant to replace the current law, in force since 1961. It has suggested multiple changes to the draft Bill, including those pertaining to the assessment of income from real estate. The committee has praised the clarity of the new Bill, which has 536 sections in 23 chapters, while identifying some areas where greater clarity in definitions might be required. It is surprising, however, that the legislators have not in general pushed back against excessive discretion being granted to the income-tax authorities. For example, it