Issues in Corporate Taxation. - jb nagar cpe study circle of wirc of icai

AAR ruling
The AAR held that s. 115JA (akin to s. 115JB) applied to every “company” to include a
“foreign company”, there was no reason to presume that the legislature did not
intend s. 115JA to apply to a foreign company. This ruling is not applicable because:
(a)
It was rendered in the case of an assessee who was carrying out business and had
a PE in India.
(b) Its income was being assessed under the head “income from business and
profession”.
(c)
It was required to maintain accounts under section 44AA of the IT Act and
prepare accounts under ss. 591 & 594 of the Companies Act;
(d) S. 591 of the Companies Act applies only to foreign companies who have
established a place of business within India and requires the preparation of a
Balance Sheet and P&L A/c as per s. 594.
(e)
The obligation in s. 115JA(2) to prepare P&L Account in accordance with Parts II
and III of Schedule VI can apply only to a foreign company which has a place of
business within India.
August, 2011
CA Sanjeev Lalan, Singrodia Goyal & Co.
Presentation at JB Nagar CPE Study Circle
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