Direct Tax

The Mumbai Bench of the Income Tax Appellate Tribunal (Tribunal) in the case of Deputy CIT v. Total Oil India Private Limited (ITA No. 6997/Mum/2019) (Taxpayer) has expressed ‘doubts’ over the correctness of certain decisions rendered by co-ordinate benches of the Tribunal (see our earlier Ergo published on 21 October 2020) on the issue of tax treaty applicability to dividend distribution tax (DDT). 

A Will is a document written by a living person stating his/her wishes to be executed after his/her death. However, this is a complex task since the person writing the Will would not be living to explain the meaning of his/her intentions. To add to the complexity, between the time the person makes a Will and his/her demise, the assets, relationships, etc., also typically undergo a change and therefore the Will also has to withstand the test of time.

The Central Board of Direct Taxes (CBDT) has issued a Press Release dated 14 June 2021 (Press Release) to ease the compliance requirement of mandatory filings (Form 15CA / 15CB) to be made for foreign remittances.

The Central Board of Direct Taxes (CBDT) vide its notification dated 24 May 2021 (Notification), has introduced Rule 11UAE under the Income Tax Rules 1962 (IT Rules). Rule 11UAE prescribes the method for computing the fair market value (FMV) of an undertaking being transferred pursuant to a slump sale.

In a recent order in M/s DJ Surfactants v National e-Assessment Centre, Income Tax Department, New Delhi and Others (Writ Petition No. 4814/2021) (Order), the Hon’ble Delhi High Court (High Court) has granted interim stay on the assessment order (Assessment Order) passed in faceless assessment proceedings. The High Court, in doing so, observed that DJ Surfactants (Taxpayer) established a prima facie case of violation of the ‘principles of natural justice’ by National e-Assessment Centre (Tax Department) in doing faceless assessment.

Given the recent surge in COVID-19 cases across the country, the Central Board of Direct Taxes (Apex body for direct taxes administration) (CBDT) has issued circular no. 08/2021 dated 30 April 2021 (Circular).

The first major lot of assessment orders have been passed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA).

The concept of ‘Significant Economic Presence’ (SEP) was introduced in India’s domestic tax law in 2018, with the intent of bringing income of non-residents operating in the online / digital space (such as e-commerce, online streaming, etc.) within the ambit of India-sourced income. However, the concept of SEP remained inapplicable as the thresholds for constituting SEP had not been prescribed.