Transfer of income to non-residents treated as taxable where a person retains power to enjoy resulting benefits. Total income includes income accruing to a non-resident where a person transfers an asset, with or without associated operations, to that non-resident and acquires rights conferring the power to enjoy the income or receives a capital sum connected to the transfer; indirect benefits (enuring for the person, asset value increases, entitlement to benefits, exercise of appointment or control over application) are treated as enjoyment. Determination depends on the substantial result and all benefits from the transfer, and the section is inapplicable if the Assessing Officer is satisfied the transactions were bona fide commercial and not tax-avoidance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Transfer of income to non-residents treated as taxable where a person retains power to enjoy resulting benefits.
Total income includes income accruing to a non-resident where a person transfers an asset, with or without associated operations, to that non-resident and acquires rights conferring the power to enjoy the income or receives a capital sum connected to the transfer; indirect benefits (enuring for the person, asset value increases, entitlement to benefits, exercise of appointment or control over application) are treated as enjoyment. Determination depends on the substantial result and all benefits from the transfer, and the section is inapplicable if the Assessing Officer is satisfied the transactions were bona fide commercial and not tax-avoidance.
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