STT applicable on delivery-based derivative settlements, CBDT to inform HC

CBDT issues note to Income tax Department Mumbai, directs Dept. to file affidavit before Bombay HC that STT shall be applicable to delivery based derivative transactions; CBDT takes a view that transaction of derivative contract being settled by physical delivery of shares is not any different from transaction in equity shares where contract is settled by actual delivery or transfer of shares ;  Therefore, CBDT instructs Dept. to clarify to HC that the rates of STT as applicable to delivery based equity transactions shall also be applicable to such derivative transaction; States that legal mandate of STT is  wide enough to cover these transactions