The revenue department has urged taxpayers to move away from aggressive tax planning and indicated to tax officials

that they needed to shun aggressive assessments, a few instances of which have dented investor sentiment in the past.

“We should move away from this whole business of aggressive tax planning vis-a-vis aggressive assessment. The problem lies in both,? revenue secretary Shaktikanta Das said at a function. “Aggressive tax planning is being undertaken by companies in certain situations. Aggressive assessment is also being done in certain situations. We need to work together and find a resolution to this issue,”

he added. He said the perception of the department being aggressive is centred around 7-8 cases which are in various courts.

With a view to end cross-border taxation disputes and to encourage investment,

India and Japan will soon sign a bilateral advance-pricing agreement (APA).

“I am happy to mention that an APA between India and Japan in a particular company’s case has been finalised and it would be inked soon. So this will bring lots lot clarity between our tax perception and the activity of that particular company. The agreement is between the tax authorities of India and Japan,? Das said.