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ITAT may set up seperate intl tax disputes bench
The Income Tax Appelate Tribunal or ITAT is considering setting up a separate bench to deal with the ever-increasing international tax disputes, reports CNBC-TV18.
According to sources, the ITAT is examining the possibility of creating a new two-member bench to hear all international tax cases.
Over 300 cases relating to international tax are pending before the ITAT. Many of them are high profile ones involving MNCs. An international tax bench at the ITAT could mean a quick disposal of cases and more tax certainty for MNCs.
The Income Tax department has had a separate wing for international taxation in place for the last five years. In Mumbai alone, the department has a dedicated team of around 20 commissioners and officers to deal with transfer pricing issues.
It has yielded rich dividends. Out of Rs 10,000 crores of revenues from the international tax stream, Rs 6,700 crores comes from Mumbai.
But the increasing importance of international taxation has also meant increasing litigation. Big MNCs like Star TV , Sony ,DHL, Citibank and American Express are all in the ITAT and their cases run into hundreds of crores of rupees. Tax experts say these cases ought to be decided on priority.
Jitendra Sanghavi, Chartered Accountant, said, "Transfer pricing issues are coming up in a big way. It is important that the ITAT resolves these issues early and sets a precedent, so that is more certainty for tax payers."
According to sources, the ITAT is likely to decide on a separate bench in the next few weeks.
According to sources, the ITAT is examining the possibility of creating a new two-member bench to hear all international tax cases. 
