B&B Tax

  “3. On consideration of the matter, with a view to avoid genuine hardship to the domestic companies in exercising the option u/s 115BAA of the Act, CBDT in exercise of the powers conferred under section 119(2)(b) of the Act, hereby directs that: - The delay in filing of Form No. 10-IC as per Rule 21AE of the Rules for previous year relevant to A.Y. 2021-22 is condoned in cases where the following conditions are satisfied: i) The return of income for relevant assessment year has been filed on or before the due date specified under section 139(1) of the Act; ii) The assessee company has opted for taxation u/s 115BAA of the Act in item (e) of "Filing Status" in "Part A-GEN" of the Form of Return of Income ITR-6; and – iii) Forn No. 10-IC is filed electronically on or before 31.01.2024 or 3 months from the end of the month in which this Circular is issued, whichever is later.” Circular No. 19/2023 dated 23.10.2023

AO v. NESTLE SA [2023 INSC 928] dated 19.10.2023   Issue: 1.        Whether there is any right to invoke the MFN clause when the third country with which India has entered into a Double Tax Avoidance Agreement (hereafter ‘DTAA’) was not an OECD member yet (at the time of entering into such DTAA); 2.        Whether the MFN clause is to be given effect to automatically or if it is to only come into effect after a notification is issued. 3.        Issuance of certificate for lower deduction of tax u/s 197 of the Act them to deduct withholding tax at a lower rate of 5% in consonance with the subject DTAA read with the Protocol. 4.        Applicability of principle of parity of DTAA with the DTAA of third State with whom India enters a Convention/DTAA who is a member of the OECD. Holding:- "V. Conclusions 88. In the light of the above discussion, it is he...

  CIT v. Bharti Hexacom Ltd [2023 INSC 917] dated 16.10.2023 Issue: Capital V. Revenue Expenditure Whether, the variable licence fee paid by the respondent-assessees to the Department of Telecommunications under the New Telecom Policy of 1999 (Policy of 1999) is revenue expenditure in nature and is to be allowed deduction under Section 37 of the Act, or, whether the same is capital in nature, Section 35ABB of the Act. Good compilation of all old decisions their summary and impressive discussions on classification of Capital V. Revenue Expenditure (Pages 79 to 90). -         - Assam Bengal Cement Co. Ltd. vs. CIT, West Bengal, (1955) 27 ITR 34 (SC). -         Member of the Board of Agricultural Income Tax, Assam vs. Sindhurani Chaudurani, (1957) 32 ITR 169 (SC). -         Pingle Industries Ltd. vs. Commissioner of Income Tax, (1960) 40 ITR 67 (SC). -      ...

  “1. Short title and commencement.–– (1) These rules may be called the Income-tax (Twenty-fourth Amendment) Rules, 2023. (2) They shall come into force from the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962, (hereinafter referred to as the principal rules) in rule 114B,–– (a) in the second proviso, for the words “Provided further th at any person”, the words “Provided further that any person, not being a company or a firm,” shall be substituted; (b) after second proviso, the following proviso shall be inserted, namely: –– “Provided also that a foreign company who,–– (i) does not have any income chargeable to tax in India; and (ii) does not have a permanent account number, and enters into any transaction referred to at Sl. No. 2 or 12 of the Table, in an IFSC banking unit, shall make a declaration in Form No. 60:”; (c) in the Explanation, clause (1) shall be re-numbered as (1A) and before the said clause as so re-numbered, the f...

  Issue: -- 1.        Whether under the Section 153C, the date with reference to which the proceedings for assessment or reassessment of any assessment year within the period of the six assessment years shall abate was to be from the date when the search and seizure proceedings were conducted, in respect of the main assessee u/s 132 or the date of receiving the books of account or documents or assets seized or requisition by the Assessing Officer having jurisdiction over such other person? 2.        Whether the proviso to Section 153(c)(1) is confined in its application to the question of abatement or for the date from which the six year period was to be reckoned?   Holding;-    “9.       It is evident on a plain interpretation of Section 153C(1) that the Parliamentary intent to enact the proviso was to cater not merely to the question of abatement but also with regard to t...

"Sub: Order under section 119 of the Income-tax Act, 1961 - reg.  Audit report in the case of a fund or trust or institution or any university or other educational institution or any hospital or other medical institution, under clause (b) of the tenth proviso to clause (23C) of section 10, or sub-clause (ii) of clause (b) of sub-section (I) of section 12A of the Income-tax Act, 1961 (the Act), as the case may be, is required to be furnished in Form No. 10B / Form No. 10BB.  2. Representations have been received regarding difficulties in filling details of persons who have made a 'substantial contribution to the trust or institution', that is to say, any person whose total contribution up to the end of the relevant previous year exceeds fifty thousand rupees (as referred to in section 13(3)(b) of the Act).  3. The matter has been examined with reference to the issue raised in paragraph 2 and it is hereby stated that for the purposes of providing details in  (i) Form N...

Questions:- 1. Whether the failure of the appellants to respond to the questions put to them by the ED would not be sufficient in itself for the Investigating Officer to arrested u/s 19 of the Prevention of Money Laundering Act? 2. How the ED is required to ‘inform’ the arrested person of the grounds for his/her arrest? Holding: 25. We may also note that the failure of the appellants to respond to the questions put to them by the ED would not be sufficient in itself for the Investigating Officer to opine that they were liable to be arrested under Section 19, as that provision specifically requires him to find reason to believe that they were guilty of an offence under the Act of 2002. Mere non-cooperation of a witness in response to the summons issued under Section 50 of the Act of 2002 would not be enough to render him/her liable to be arrested under Section 19. As per its replies, it is the claim of the ED that Pankaj Bansal was evasive in providing relevant information. It w...

“21AHA. Exercise of option under sub-section (5) of section 115BAE.  (1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAE by a person, being a co-operative society resident in India, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024, shall be in Form No. 10-IFA.  (2) The option in Form No. 10-IFA shall be furnished electronically either under digital signature or electronic verification code.  (3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall, –  (i) specify the procedure for filing of Form No. 10-IFA;  (ii) specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and  (iii) be responsible for formulating and implementing appropriate security, archival...