Article
Implication of amalgamation on assessment proceedings
A company is a juristic personality which not only comes into existence by operation of law but its cessation also takes place by operation of law. Section 159 of Income-tax Act deals with assessment and tax recovery after the death of a person but there is no similar provision in the Act dealing specifically with companies if they cease to exist on account of winding up or merger. Section 170 provides that in a case where predecessor cannot be found (e.g. transferor company in case of amalgamation cannot be found) the assessment shall be made on the successor (transferee company)
Notifications & Circulars
- Providing information regarding cash deposits following demonetization scheme – CBEC issues notification
- India-Japan DTAA – Amendments for effective exchange of information
- Chapter VI-A deductions available on profits enhanced after making disallowances
- Lump sum lease premium paid for acquisition of long term leasehold rights in land – TDS need not be deducted
Ratio Decidendi
- Legal fees paid to overseas firm towards assisting in setting up of branch abroad is not royalty or fees for technical services – ITAT, Mumbai
- Transfer pricing provisions are not applicable to the transactions between the Indian head office and foreign branch office as it is not a separate enterprise – ITAT, Delhi
- Section 50C applicable when property is transferred by sale cum GPA agreement – ITAT, Vishakhapatnam
- Initiation of assessment proceedings is invalid if notice under Section 143(2) is not issued – Kerala High Court
