Gift By Company to Subsidiary Is A "Dubious Tax Avoidance Scheme": AAR

---------- Forwarded message ----------
From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Wed, Aug 15, 2012 at 12:26 PM
Subject: Message from EGroup of SolapurCAs Gift By Company to Subsidiary Is A "Dubious Tax Avoidance Scheme": AAR
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

In Re Orient Green Power Pte. Ltd (AAR)

"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:

(Click Here To Read More)

Regards,

Editor,

itatonline.org

---------------------

Latest:

Appointment Of IRS Officers As Joint Commissioners Of Income-tax