Direct Tax Amicus

2024

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Direct Tax Amicus, September 2024

The article in this issue of Direct Tax Amicus analyses the impact of the judgment on taxation of indirect transfer of shares of an Indian company where grandfathering benefit is not available. Discussing the position prior to the judgement, key findings of the said decision and the potential issues post this decision, the authors conclude by stating that while the recent decision is of utmost importance when it comes to applicability of the tax avoidance principles and granting of tax treaty benefit, it may pose hurdles in the cases of indirect transfers where grandfathering benefit is not available.

Direct Tax Amicus, August 2024

The article in this issue of Direct Tax Amicus discusses in detail the question as to whether the tax department has power to go after the debtors of the garnishee i.e., whether it would lead to issuance of notice under Section 226(3) to garnishee of garnishee

Direct Tax Amicus, July 2024

The article highlights, along with illustrations, a number of these ambiguities and associated practical hardships that a businessman would face going forward.

Direct Tax Amicus, June 2024

The Courts in the past have on numerous occasions held that the filing of statutory forms within the due date prescribed under the Income Tax Act, 1961, is a directory (and not mandatory) requirement, to claim deductions/exemptions that are available to taxpayers. Recently, however, the Supreme Court judgment in Wipro Limited changed the course of the river.

Direct Tax Amicus: May 2024

Section 281 of the Income Tax Act, 1961 empowers the Department to declare a transfer of an asset as void where the transferor, during the pendency of any proceedings under the IT Act or completion thereof...

Direct Tax Amicus: April 2024

The drastic difference in income-tax treatment of both the instruments – Life Insurance Policies and Annuities, requires closer examination of their meaning to distinguish one from another

Direct Tax Amicus: March 2024

This article in this issue of Direct Tax Amicus seeks to analyze the applicability of the non-discrimination article in tax treaties on disallowance of expenses on payment made to non-residents without withholding..

Direct Tax Amicus: February 2024

The article in this issue of Direct Tax Amicus discusses a recent ruling of the Delhi Appellate Tribunal in the case of Prism Scan Express Private Limited

Direct Tax Amicus: January 2024

The article in this issue of Direct Tax Amicus discusses the issue of attribution of profits in case of losses at the global level, which has once again gathered spotlight as the Delhi High...

Direct Tax Amicus: December 2023

The article in this issue of Direct Tax Amicus examines as to whether in case of fresh issuance or allotment of shares, be it Equity Shares or Preference Shares, Section 56(2)(x) of the Income Tax...

Direct Tax Amicus: November 2023

The Supreme Court recently passed a judgment, in favour of the Revenue department, interpreting the Most Favoured Nation (‘MFN’) clause present in various Double Taxation Avoidance Agreements (‘DTAAs’).

Direct Tax Amicus: October 2023

The article in this issue of Direct Tax Amicus discusses the adverse impact, under the Income Tax Act, 1961, of conversion of outstanding loan to equity.

Direct Tax Amicus: September 2023

The article in this issue of Direct Tax Amicus seeks to examine the question as to whether treaty benefits should at all be provided if the non-resident seller of shares does not have much commercial substance.

Direct Tax Amicus: August 2023

The Bombay High Court has recently held that the timelines for passing an assessment order specified in Section 153 of the Income Tax Act, 1961 are not to be extended in cases where the assessee takes the Dispute Resolution Panel route and the final assessment order under Section 144C(13) has to be passed

Direct Tax Amicus: July 2023

The Finance Act, 2021 substituted the provisions of reassessment under the Income-tax Act, 1961. Under the new reassessment provisions, the concept of ‘reason to believe’ has been substituted with ‘information’ which suggests that the income has escaped assessment.

Direct Tax Amicus: June 2023

The article in this issue of Direct Tax Amicus discusses a recent decision of the Supreme Court in the case of Saraf Exports v. CIT, wherein the Apex Court has held that export incentives like Duty Drawback and DEPB will not qualify as first-degree nexus for the purposes of claim of deduction under Section 80-IB of the Income Tax Act, 1961.

Direct Tax Amicus: May 2023

The article in this issue of Direct Tax Amicus discusses elaborately the recent amendment in Section 11 of the Income Tax Act, 1961 vide Finance Act, 2023, with effect from 1 April 2024. Noting that a charitable entity was allowed to accumulate a maximum of 15% of its income...

Direct Tax Amicus: April 2023

The article in this issue of Direct Tax Amicus discusses the labyrinth of exemption available to charitable institutes under the Income Tax Act, 1961. Considering the changing landscape of the exemption regime, right from Finance..

Direct Tax Amicus: March 2023

Amongst various tax amendment proposals announced this year, proposal for taxing ‘cash’ benefits and perquisites is likely to have a wide-reaching impact on the taxpayers, especially in Amongst various tax amendment proposals announced this year, proposal for taxing ‘cash’ benefits and perquisites is likely to have a wide-reaching impact on the taxpayers, especially in..

Direct Tax Amicus: February 2023

Income derived from Trust property has been exempt under Income-tax laws since the Act of 1886. Tracing the legislative history in respect of income from property held under trust, the author examines amendments made by Finance Act, 1970;

Direct Tax Amicus: January 2023

It gives me great pleasure to address you through this 100th issue of Direct Tax Amicus. I have always believed that the wealth of knowledge should be shared

Direct Tax Amicus: December 2022

The charitable trusts/institutions enjoy substantial income-tax benefits and hence are often subject to detailed scrutiny to ensure that commercial concerns are kept outside the boundaries of the tax-exempt status.

Direct Tax Amicus: November 2022

Lately, in the context of dividend income, the applicability of MFN clause has been a subject matter of dispute between the taxpayers and the Revenue authorities. The controversy revolves around the fact that the dividend income is taxable in India at the rate of 5%...

Direct Tax Amicus: October 2022

The same income of an entity can become liable to tax in two countries, leading to harsh consequences. To provide relief, the assessees are allowed to claim credit of the tax paid in a foreign country against the tax liability in India, provided that such foreign income is also taxable under the Income Tax Act, 1961 in India. The article in this issue.

Direct Tax Amicus: September 2022

One of the issues of wide interest and contemplation is whether a foreign company is liable to file a return in India when there is income accruing or arising in India but the same is not liable to tax, either because of an exemption under the Income...

Direct Tax Amicus: August 2022

The Income Tax Act, 1961 provides for various benefits for trusts which are established for charitable or religious purposes and are registered under the said Act.

Direct Tax Amicus: July 2022

The article in this issue of Direct Tax Amicus elaborately discusses Section 10AA of the Income Tax Act, 1961 which entitles every person being an entrepreneur of a SEZ unit to claim deduction of the profits and gains derived from export of services or articles or things manufactured or produced through such unit, subject to certain conditions.

Direct Tax Amicus: June 2022

The year 2022 has witnessed major changes in exemption regimes available to charitable institutions under the Income-tax Act, 1961. Through these changes, while the Government has seemingly taken care of one issue faced by charitable institutions, it has also given birth to a new one.

Direct Tax Amicus: May 2022

The article in this issue of Direct Tax Amicus discusses elaborately the recent decision of the Supreme Court in the case of Apex Laboratories wherein the Court has denied the claim of expenditure under Section 37 of the Income-tax Act, 1961 incurred by pharmaceutical companies on gifting of freebies to doctors.

Direct Tax Amicus: April 2022

The article in this issue of Direct Tax Amicus discusses elaborately the recently introduced taxation of virtual digital assets (VDA). It discusses how the definition of VDA in the Income-tax Act is wider than the definition of digital asset expressed by Financial Action Task Force (FATF), OECD or UK Money-Laundering Laws.

Direct Tax Amicus: March 2022

The Finance Bill, 2022 has proposed to insert an explanation to Section 14A of the Income-tax Act, 1961 to state that bereft exempt income being earned in any year, disallowance under Section 14A will still be attracted. The article in this issue of Direct Tax Amicus, in this regard, elaborately discusses various issues that may crop up once the provisions are enacted.

Direct Tax Amicus: February 2022

The article in this issue of Direct Tax Amicus elaborately discusses a restriction under various provisions of the Income Tax Act, granting certain tax holidays to new businesses and providing that the new business should ‘not be formed by splitting up, or the reconstruction, of a business already in existence’.

Direct Tax Amicus: January 2022

The article in this issue of Direct Tax Amicus examines the question as to whether after the enactment of new reassessment law from 1 April 2021, the reassessment notice can still be issued under the old law till 30 June 2021 and whether the old law remains alive for such cases because of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and subsequent notifications. The article notes that the issue has been contested before various...

Direct Tax Amicus: December 2021

The amendment by Finance Act, 2021 seeks to tax notional interest on Employee’s contribution to specified provident fund, exceeding the threshold limit made on or after 1 April 2021. Recently, the Income Tax Rules have been amended to lay down the manner of computation of taxability of interest.

Direct Tax Amicus: November 2021

The article in this issue of Direct Tax Amicus attempts to analyze the aspect of determining the year of taxability of capital gains arising out of the transfer of immovable property under Joint Development Agreements (‘JDAs’). It analyses the provisions of the Income Tax Act, 1961 and the jurisprudence laid down by various Courts and ITAT in case of registered JDAs.

Direct Tax Amicus: October 2021

The article in this issue of Direct Tax Amicus analyses the various income-tax implications of the amendments in Section 135 of the Companies Act, 2013 and the Companies (CSR Policy) Rules, 2014 with effect from 22 January 2021, and related aspects, on the companies and charitable trusts/societies being implementing agencies.

Direct Tax Amicus: September 2021

The article in this issue of Direct Tax Amicus elaborately discusses the recently introduced definition of ‘liable to tax’ in the Income-tax Act, 1961. Tracing the history of the dispute relating to the phrase in determination of residency under Double Taxation Avoidance Agreements (DTAA),

Direct Tax Amicus: August 2021

Direct Tax Amicus: July 2021

The transfer of immovable property by land owners under the mechanism of Joint Development Agreement (‘JDA’) has evolved over the years. The article in this issue of Direct Tax Amicus analyses the provisions of Section 45(5A) of the Income-tax Act, 1961 in a scenario where the JDA is unregistered.

Direct Tax Amicus: June 2021

The article in this issue of Direct Tax Amicus attempts to discuss the dispute as to whether income-tax includes in its ambit the surcharge and cess also.

Direct Tax Amicus: May 2021

The article in this issue of Direct Tax Amicus discusses how the legislature has vide Finance Act, 2021 gone far beyond the expectations of the taxpayers by redesigning the entire scheme of taxation in cases of reconstitution and dissolution of partnerships.

Direct Tax Amicus: April 2021

Recently, the Supreme Court in DCIT v. Pepsi Foods Ltd. examined the power of the Income Tax Appellate Tribunal (‘ITAT’) to grant stay, as well as certain amendments which provided for automatic vacation of stay granted by the ITAT. The article in this issue of Direct Tax Amicus analyses the legislative history in the matter of grant of stay by the Tribunal with the help of notable judicial precedents.

Direct Tax Amicus: March 2021

The article in this issue of Direct Tax Amicus discusses the recently introduced Faceless Penalty Scheme, 2021 which has come into effect from 12 January 2021.

Direct Tax Amicus: February 2021

The article in this issue of Direct Tax Amicus discusses the recently introduced Faceless Penalty Scheme, 2021 which has come into effect from 12 January 2021

Direct Tax Amicus: January 2021

The article in this issue of Direct Tax Amicus discusses at length the recent decision of the ITAT Delhi in the case of Giesecke & Devrient [India] Pvt Ltd. v. Addl. CIT. The decision provides a major relief to the taxpayers on the rate of tax applicable on dividends paid by an Indian company to its overseas parent.

Direct Tax Amicus: December 2020

instruments, being debt at the time of issue along with a certainty to get converted into equity.

Direct Tax Amicus: November 2020

The article in this issue of Direct Tax Amicus discusses at length the question as to whether ‘slump exchange’ is covered by the provisions of Section 50B of the Income Tax Act, 1961.

Direct Tax Amicus: October 2020

The article in this issue of Direct Tax Amicus discusses at length a peculiar issue relating to Equalisation levy on non-resident e-commerce facilitators, regarding the amount on which the such e-commerce facilitators should charge such levy.

Direct Tax Amicus: September 2020

Sub-section (1H) introduced in Section 206 of the Income-tax Act, 1961 by the Finance Act, 2020, seeks to extend the ambit of Tax Collection at Source (‘TCS’) to consideration received from sale of goods.

Direct Tax Amicus: August 2020

Doctrine of Merger is a common law doctrine which is founded on the principles of propriety in the hierarchy of justice delivery system. The underlying logic of Doctrine of Merger is that there cannot be more than one decree or an operative order governing the same subject-matter at a given point of time.

Direct Tax Amicus: July 2020

Section 115BAA of the Income Tax Act, 1961 is a reduced corporate taxation scheme introduced for domestic companies vide the Taxation Laws (Amendment) Act, 2019 (w.e.f. AY 2020-21). Once opted for, the domestic company would be taxed at 25.17% (effective tax rate inclusive of surcharge and cess) during the lifetime of the said company in respect of its total income.

Direct Tax Amicus: June 2020

After the recent introduction of exemption to Sovereign Wealth Funds in respect of certain income earned from India, the issue as to whether such entities are subject to tax, in the first place, has been reignited.

Direct Tax Amicus: May 2020

Section 132(4A) of the Income Tax Act, 1961 empowers an Assessing Officer to presume that anything that is found in searched premises belongs to the occupant of such premises. However, this power to presume is not absolute in the hands of the Assessing Officer, in that the presumption is rebuttable.

Direct Tax Amicus: April 2020

OECD’s plan to build a ‘Unified Approach’ for taxing digital economy has been testing the patience of the consumer/ user facing countries since long. India was one of the first countries to implement a digital tax levy called the ‘Equalization levy’ in 2016, and now in 2020 it has broadened the scope of the levy.

Direct Tax Amicus: March 2020

Finance Bill, 2020 has proposed to relieve corporates from paying distribution tax on dividends (‘DDT’) and proposes to go back to the old school ways of taxing such dividends in the hands of the shareholders. The Bill has also proposed re-introduction of Section 80M of the Income Tax Act which was omitted vide Finance Act, 2003.

Direct Tax Amicus: February 2020

Benami Transactions (Prohibition) Act, 1988 after the amendment in 2016 also provides for confiscation of benami properties besides criminalizing benami transactions. The Rajasthan High Court recently deliberated upon the question as to whether the consequences of the Amendment Act were retrospective in nature.

Direct Tax Amicus: January 2020

The article in this issue of Direct Tax Amicus intends to discuss few crucial aspects concerning claim of and computing deduction under Section 36(1)(viia) of the Income Tax Act. Until 2017, only specified categories of banks were permitted to claim deduction qua provision for bad and doubtful debts.

Recent Articles

Fact Check Unit amendment invalidated – Intermediaries in the line

Applicability of Doctrine of Merger between intimation under Section 143(1) and assessment order under Section 143(3)

Recent News

Extension of time limits provided by TOLA applies to limitation period provided for reopening of assessment and for grant of sanction

GST – ITC is available on construction of ‘plant’ for letting out

Compressors used in car air-conditioners are classifiable under TI 8414 80 11 – SC decision in Westinghouse distinguished

GST Council’s recommendation is mandatory if Central/State Act stipulates an act to be done on such recommendations

Recent Media

Functionality test propounded in Safari Retreats case: An opportunity or new challenge for taxpayers?

E-commerce export hubs: Opportunities and challenges

Lakshmikumaran And Sridharan Advised Krsnaa Diagnostics On stake Purchase In Apulki Healthcare