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

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History of Corporate Taxation in India • Corporate taxation is governed by the Income Tax Act, 1961 • Levy of tax on corporate has undergone several changes from time to time • Includes additional tax on closely held company, distinction of tax structure between trading company and industrial company and certain incentives and special deductions such as Sec. 33AC, 35DD, Sec.80-O among others • Major developments in Corporate taxation came when the Government felt that various exemptions that benefits hundreds of corporate are not falling into the tax net • Hence, the concept of tax on Book Profit, (known as Minimum Alternate Tax (MAT) August, 2011 CA Sanjeev Lalan, Singrodia Goyal & Co. Presentation at JB Nagar CPE Study Circle 2
Piercing the Corporate Veil • One of the fundamentals of corporate taxation is the concept of piercing the corporate veil • Company is merely a front in a scheme of tax avoidance • The Supreme Court has explained this concept in CIT vs. Sri Meenakshi Mills Ltd. 63 ITR 609 at Page 616. “It is true that from juristic point of view the company is a legal personality entirely distinct from its members and the company is capable of enjoying rights and being subjected to duties which are not same as those enjoyed or borne by its members. But in certain exceptional cases the Court is entitled to lift the veil of corporate entity and to pay regard to economic realities behind the legal façade. August, 2011 CA Sanjeev Lalan, Singrodia Goyal & Co. Presentation at JB Nagar CPE Study Circle 3
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Page 7 and 8: Facts & Background • Assessee was
Page 9 and 10: Facts & background in reference to
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Page 13 and 14: Arguments Assessee’s arguments Th
Page 15 and 16: AAR ruling (f) (g) As the applicant
Page 17 and 18: Dalal Broacha Stock Broking Private
Page 19 and 20: Arguments Assessee’s arguments De
Page 21 and 22: Tribunal’s observations and decis
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Page 25 and 26: CIT (Appeal)’s observations and d
Page 27 and 28: Assessee’s arguments • All the
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Page 31 and 32: Issues before the Tribunal • Whet
Page 33 and 34: Contentions of the assessee • The
Page 35 and 36: Questions ?? August, 2011 CA Sanjee

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

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