Residence of foreign company triggers applicability of domestic tax computation, loss treatment and anti avoidance rules when notified conditions apply. When a foreign company is treated as resident in India though not previously resident, the Income tax Act's rules for computing total income, unabsorbed depreciation, set off and carry forward of losses, collection and recovery and anti avoidance provisions apply subject to conditions notified by the Central Government; failure to meet those notification conditions renders any granted benefits wrongly allowed and permits the Assessing Officer to recompute income and rectify assessments within the available rectification period.
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.
Residence of foreign company triggers applicability of domestic tax computation, loss treatment and anti avoidance rules when notified conditions apply.
When a foreign company is treated as resident in India though not previously resident, the Income tax Act's rules for computing total income, unabsorbed depreciation, set off and carry forward of losses, collection and recovery and anti avoidance provisions apply subject to conditions notified by the Central Government; failure to meet those notification conditions renders any granted benefits wrongly allowed and permits the Assessing Officer to recompute income and rectify assessments within the available rectification period.
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