Article
Rollback of retro tax: A step in the right direction
By Tanmay Bhatnagar
The article in this issue of Direct Tax Amicus seeks to analyse the latest changes brought in by the Taxation Law (Amendment) Act, 2021 which rolls back the controversial retro-tax imposed in 2012 on capital gains arising from an indirect transfer of shares of an Indian company. The article discusses the background of the changes, including the Supreme Court decision which was rendered infructuous by the Finance Act, 2012 and the ensuing controversies. It also deliberates on the relief now being brought by the latest changes, including the conditions which need to be fulfilled for the same. Welcoming the amendment, the author however points that the government has not provided any relief in respect of certain similarly criticised provisions relating to retrospective levy on certain transactions which were deemed to be royalty vide the Finance Act, 2012 and sought to be taxed at source in India...
Notifications & Circulars
- Determination of income of Category III Alternative Investment Funds
- Manner of re-computation of books profits and determination of MAT liability in case of advance pricing agreement or secondary adjustment
- Calculation of taxable interest in case of excess contribution in a provident fund
- Introduction of Rule 14C to ease electronic verification in Faceless Assessment Proceedings
- Time limits for filing of various forms extended
- Direct Tax Vivad se Vishwas – Dates for making payment extended
- Authorising Interim Resolution Professional, Resolution Professional and Liquidator to verify returns and act as authorized representative in case of Companies and LLPs
- Boards for Advance Rulings notified
Ratio decidendi
- Depreciation on software cannot be disallowed by applying Section 40(a)(i) for non-deduction of tax at source on purchase – ITAT Bengaluru
- Payments made for services of advertising, marketing and rental use of IT infrastructure to non-resident are not ‘royalty’ – ITAT Bengaluru
- Foreign Tax Credit – Article 23 of India-Tanzania DTAA to be interpreted in the same manner as Article 23 of India-Korea DTAA – ITAT Bengaluru
- iPads are not complete substitutes for computers and hence, ineligible for depreciation at 60% – ITAT Amritsar
- Refund withheld without reasoned order not sustainable – Calcutta HC allows refund with interest – Calcutta High Court
- SGPC eligible for registration under Section 80G, as it provides services to all humanity without discriminating on religion, caste, creed or sex, etc. – ITAT Amritsar
