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

AAR ruling
(f)
(g)
As the applicant does not have a place of business in India, its preparation of P&L
Account in accordance with Parts II & III of Schedule VI cannot be complied;
Introduction of s. 115JA which makes the legislative intent clear that MAT was not
intended to apply to foreign companies;
(h) Income, which does not have a source in India, cannot be made part of the book
profits. The annual accounts, including the P&L Account, cannot be prepared as
per s.115JB(2) in respect of the world income and laid before the Company at its
AGM in accordance with sec. 210 of the Companies Act.
(i)
(j)
The contention of the department that there is no demarcation between a ‘domestic
company’ and a ‘foreign company’ while applying s. 115JB is not acceptable.
As the applicant did not have a place of business in India and was not required to
prepare its accounts under s. 594 r.w.s. 591 of the Companies Act, it could not have
prepared its accounts in accordance with the provisions of Part II and III of
Schedule VI of the Companies Act, 1956.
August, 2011
CA Sanjeev Lalan, Singrodia Goyal & Co.
Presentation at JB Nagar CPE Study Circle
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