Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TDS :: form 3cd :: due date for vat payment :: list of goods taxed at 4% :: VAT RATES :: articles on VAT and GST in India :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4%
 
 
ITAT-Constitution of Benches »
 Income Tax Appellate Tribunal Visakhapatnam Bench Consolidated list of orders ready for pronouncement on 06/04/2017
 Income Tax Appellate Tribunal Mumbai Consolidated list of orders ready for pronouncement on 26/04/2017
 Income Tax Appellate Tribunal : Kolkata Benches : Kolkata Constitution of Kolkata Benches for one week from 17.04.2017 To 20.04.2017(21st April 2017- M.A.Day)
 Income Tax Appellate Tribunal, Hyderabad Benches, Hyderabad. Constitution For The Period From 17.04.2017 To 27.04.2017.
 Income Tax Appellate Tribunal Pune Benches Pune Causelist for Bench 'A' For The Week Ending 21/04/2017
 Income Tax Appellate Tribunal Pune Benches Pune Causelist for Bench 'A' For The Week Ending 21/04/2017
 Income Tax Appellate Tribunal, Visakhapatnam Bench List Of Division Bench Cases Posted Before Shri V Durga Rao, Hon'ble Judicial Member & Shri G Manjunatha, Hon'ble Accountant Member During The Period From 17 April, 2017 To 5 May, 2017.
 Income Tax Appellate Tribunal New Delhi Constitution of Benches from 17/04/2017 To 20/04/2017
 Income Tax Appellate Tribunal : Bangalore Benches : Bangalore 'A' Bench DB Cases Causelist for the Week from 17/04/2017 To 20/04/2017
 Income Tax Appellate Tribunal : Pune Benches : Pune Constitution of Pune Benches Division Bench from : 17/03/2017 To 21/03/2017
 Income Tax Appellate Tribunal Mumbai Constitution of Benches from 17/04/2017 To 20/04/2017

In Re Orient Green Power Pte. Ltd (AAR)
July, 26th 2013

Gift” by company to subsidiary appears to be “Dubious tax avoidance scheme”

The Applicant, a Singapore company, “gifted” the shares of Bharath Wind Farm Ltd, an Indian company, to its 99.61% subsidiary Orient Green Power Ltd, another Indian company. As the gift was made prior to the enactment of s. 56(2)(viia) and there was no consideration received, it was claimed that there was no taxable income and that the transfer pricing provisions did not apply. The department opposed the applicant on the ground that it did not appear to be genuine. HELD by the AAR:

U/s 82 of the Companies Act, shares in a company is moveable property transferable in the manner provided by its Articles of Association. The applicant has not shown the gift was authorized by its Articles. It is difficult to imagine the Articles of Association of a company providing for gifting away of the assets in the form of shares in another company by what is attempted to be described as oral gift. A “gift” by one company to another company of shares in a public company appears to be strange, unless it be one which has been set up for some purpose. The revenue’s contention that the purpose of the gift is to avoid tax and s. 56(2)(viia) is not far-fetched. Also, s. 47(i) & (iii) appear to apply to gifts by individuals and HUFs and not by companies. The Authority has the right & the duty to consider the reality of the transaction and genuineness of the transaction, in addition to its validity. When such transactions are entered into involving substantial assets the applicant has to prove to the hilt the factum, genuineness and validity of the transaction, the right to enter into the transaction and the bona fides of the transaction. To postulate that a corporation can give away its assets free to another even orally can only be aiding dubious attempts at avoidance of tax payable under the Act. The AO is in a better position to make a proper enquiry into the question of the genuineness and validity of the transaction. Hence, a ruling is declined.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions