Article
Deduction under 10AA – Benefit available even after sunset date?
By Karanjot Singh and Parvathy Kartha
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. It notes that although the sunset date for setting-up new units in SEZ to claim such deduction has lapsed, it is possible that certain taxpayers may acquire new units by way of amalgamation and demerger and commence claiming deduction (for the balance period) after the sunset date. Considering that the availability of deduction boils down to the conduct, the authors state that the taxpayers may be required to demonstrate genuineness of business re-organisation involving merger/de-merger of eligible units. According to them, maintenance of separate books of accounts qua the unit and ensuring substantial investment in the new unit would help the assessee in proving the genuineness of the merger/ demerger and thereby claiming the deduction...
Notifications & Circulars
- Virtual Digital Assets (‘VDA’) clarified
- Mutual Agreement Procedure (MAP) guidance updated – Interplay with Vivad se Vishwas
- Tax benefits under Sovereign Gold Bond Scheme, 2022-23
- Tolerance range notified for calculating Arm’s Length Price (‘ALP’) for A.Y. 2022-23
- No tax withholding on lease rentals paid for leasing of aircrafts to lessors in International Financial Services Centre (IFSC)
Ratio decidendi
- Reimbursement paid by Indian entity to overseas entity towards salaries of employees seconded to Indian entity is not Fees for Included Services, absent satisfaction of make-available clause – Karnataka High Court
- Reference to TPO made after expiry of assessment time limit is bad in law – Assessee not barred by estoppel to challenge such time-barred reference and subsequent proceedings – Madras High Court
- Actual sale consideration when to be considered instead of stamp duty value, under Section 50C – ITAT also allows exemption under Section 54F; rejects addition of notional rent and rejects application of Section 50 on capital gains from sale of building incapable of depreciation – ITAT Jaipur
- Re-assessment proceedings initiated during pendency of CIRP when valid – Madras High Court
- Depreciation on goodwill, arising out of acquisition of businesses as going concerns in a slump sale before 1 April 2021 is allowable – ITAT Bengaluru
