CPT V24P7-Art1 (Content).pmd - Taxmann

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<strong>Content</strong>s iv August 1 to 15, 2012 u TAXMANN’S CORPORATE PROFESSIONALS TODAY u Vol. 24 u 4
INTRODUCTION Vodafone story - 1. One thought that dust had finally settled on the Vodafone International Holdings B.V. v. Union of India [2012] 204 Taxman 408/17 taxmann.com 202 with the decision of the Supreme Court. But it was not to be. The Finance Ministry, Government of India, not being satisfied with the above decision, sought to have the last laugh in the matter by proposing declaratory amendments to the Income-tax Act with retrospective effect, in the Finance Bill, 2012, so as to nullify the decision of the Apex Court. The proposed amendments to the Incometax Act were passed by the Parliament and have also become the law after receiving the assent of the President. However, the issue has not died down. The foreign investors as well the Indian industrial houses, who had adopted the same strategy like Hutchinson Inc. for making investments in new business ventures in India to avoid capital gains tax on disinvestment, are agitating against the amendment, particularly its retrospective effect, as they apprehend that their tax planning in the earlier years might have come within the departmental scanner. They are also not happy with the nullification of the decision of the highest Court of law and the amendments, which block the tax planning strategy for investments they have followed so far in different Re-written DIRECT TAX LAWS A.J. MAJUMDAR Member (Retd.), CBDT countries. The issue has now transcended from being merely a tax issue to a larger economic issue, like the country becoming an unattractive destination for foreign direct investment – a country where the decision of the highest Court of law is not followed, which is receiving attention in the highest quarters of the Government. The present article, however, only discusses on the legal aspects of the issue and not its economic and political ramifications. 2. THE RECENT AMENDMENTS TO THE INCOME-TAX ACT 2.1 These amendments are - (a) An Explanation has been added, for removal of doubt, in the definition of capital asset in section 2(14) to clarify that “property” includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever. (b) It has been clarified for removal of doubt by way of Explanation 2 to the definition of transfer in section 2(47) that “transfer” includes and shall be deemed to have always included disposing of or parting with an asset or any interest therein, August 1 to 15, 2012 u TAXMANN’S CORPORATE PROFESSIONALS TODAY u Vol. 24 u 5 625
Page 3 and 4: August 1 to 15, 2012 u TAXMANN’S
Page 5: Accounts & Audit 701 707 FOUNDER ED
Page 9 and 10: and the capital gains on transfer o
Page 11 and 12: used to introduce new rules of law,
Page 13 and 14: for earning tax exempt income. Howe
Page 15 and 16: of the hearing before the Tribunal
Page 17 and 18: (P.) Ltd.’s (supra) before the IT
Page 19 and 20: the ITAT Rules, 1946, vis-à-vis th
Page 21 and 22: Two recent instances of such practi
Page 23 and 24: ut CIT(A) are not bothered by any s
Page 25 and 26: say, twice the latter amount or mor
Page 27 and 28: Taxing the Expenditure on Litigatio
Page 29 and 30: PENALTY CHARGES FOR BREACH OF LAW C
Page 31 and 32: Exclusive Owner v. Joint Owner DIRE
Page 33 and 34: to agree with the assessee’s cont
Page 35 and 36: Retrospective Amendments - Courts D
Page 37 and 38: Court and if such party is still ag
Page 39 and 40: of the Act. It will not apply to de
Page 41 and 42: ank. It follows that if the amount
Page 43 and 44: This article aims to study various
Page 45 and 46: The true profits of the insurance b
Page 47 and 48: expenditure or allowance which is n
Page 49 and 50: the same have not yet been adopted
Page 51 and 52: 48. General Insurance Corpn. of Ind
Page 53 and 54: of income as declared by the assess
Page 55 and 56: NGOs undertake many kinds of charit
Page 57 and 58:
in the above judgment observed that
Page 59 and 60:
ground not raised earlier in appeal
Page 61 and 62:
As per section 145 of the IT Act bu
Page 63 and 64:
enhanced rates shown as receipts in
Page 65 and 66:
a common passage, common kitchen, e
Page 67 and 68:
The Tribunal concluded the decision
Page 69 and 70:
ent free accommodation was not bein
Page 71 and 72:
(c) Lease rental shall be paid at t
Page 73 and 74:
of the above definition, the assess
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The High Court held in favour of as
Page 77 and 78:
‘Approach road’ treated as a pa
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or any form in which such Director
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invests in a fair manner. Generally
Page 83 and 84:
Disclosure of Borrowings under Revi
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RELEVANT GUIDANCE PROVIDED BY THE I
Page 87 and 88:
5.1.3 Maturity profile of unsecured
Page 89 and 90:
ACCOUNTS & AUDIT IN BRIEF A Fortnig
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cost savings, greater efficiency, i
Page 93 and 94:
8.2 Summary - IESBA has released th
Page 95 and 96:
equirements but of late has receive
Page 97 and 98:
Gram Yojana. Additionally, other sc
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