Sem-VIII

CORPORATE TAX (HONS.)

INTRODUCTION:
Our ancient history and culture give us in India our unique identity. Ancient lawgivers and
philosophers, like Manu and Chanakya, wrote extensively on the duties of a sovereign and their
relationship with the subjects. They laid foundations of mighty empires and enabled the spread
of India’s unique culture and civilization across many countries. When Mr. James Wilson
introduced Income Tax in India in its modern form, he was only following in the footsteps of this
illustrious tradition. The ancient dictum, ‘Kosh Mul Danda’ continues to be as relevant today as
it was thousands of years back. At that time, though the existence of industrialization and trading
was at its acute stage, but taxation of the transactions by these above bodies prevailing.

The concept of tax planning, tax avoidance and tax evasion has received extensive judicial
attention in India. However in recent times this subject has gained much importance because of
the increasing tendency of the Revenue to examine with microscope any transaction that leads to
reduction in tax liability.

The study of Corporate Tax or Corporation Tax has received huge importance in modern times
as globalization has led to entry of companies in India which not only generate employment but
also bring revenue to state. The implication of tax and its study commences from the very birth
of any company and continues till the liquidation of the company under the study of corporate
tax. Tax authorities have to support the object of the policies framed by State, and in this sense
we study various provisions which facilitate the companies to develop and generate economy to
the nation. Nevertheless, the provisions are amended to support the policies but the tax
authorities will continue to charge tax on these corporate bodies having different status.

Recently we have seen the law courts trying to compute tax on the overseas transactions of the
companies, which proves the competency and power of the tax authorities in India and their
vigilance over the transactions which draw some impact in India. So the reconstructions or
rehabilitation of the companies have separate importance and scope of study under the tax
perspectives. We need to study the classifications of companies done by the financial
perspectives and social object.

MODULE----1
INTRODUCTION
1. Historical Development of Income Tax and Corporate Tax.
2. Tax structure in India under Indian Income Act.
3. Concepts.
4. What is company?
5. Residential Status of company and its relation with tax.
6. Receipt of income.
7. Accrual of income.

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MODULE----2
TAXATION OF COMPANIES
1. Carry Forward and Set off of business losses and deprecation.
2. Taxable Income and Tax Liability.
3. Tax on Distribution of Profit.
4. MAT (Minimum Alternative Tax).
MODULE----3
TAX IMPLICATION
1. Taxation with reference to Newly Established Business.
a. Location of a Business.
b. Nature of Business.
c. Form of Business.
MOUDLE----4
BUSINESS TAX PROCEDURE AND MANAGEMENT
1. Double Taxation Avoidance Agreement.
2. Advance Payment of Tax.
3. Collection of Tax at Source and E—TDS Return.
4. Tax Planning and Management.
MOUDLE----5
TAX ON BUSINESS RESTRUCTURING
1. Amalgamation
2. Demerger..
3. Transfer of Assets between Holding Companies and Subsidiary Companies.
Reference:
BOOKS: ---
1. Income Tax Law by Chaturvedi & Pithisaria (Wadhwa Publication).
2. Income Tax Law by V.K.Puri (Jain Books Agency Publication)
3. Law of Income Tax by Sampath Iyengar (Bharat Publication).
4. Corporate Tax Planning by V.K.Singhania (TAXMAN PUBLICATION).
5. Corporate Tax Planning by Daniel Q. Posin (Little Brown & Company, London).
6. Corporate Tax Planning and Management Direct Tax Law & Practice by Girish Ahuja &
Ravi Gupta (Bharat Publication).
7. Guide on Foreign Collaboration by Rajiv Jain (India Investment Publication).
8. Tax Incentives for Foreign Direct Investment by Alex Easson (Kluwer Law Internation).
9. Corporate tax planning by Daniel Q. Posin (Little Brown & Company, London).
10. Double Taxation, Tax Treaties, Treaty Shopping by Christiana HJI Panayi (Kluwer Law
International).

CASES: ---
1. Wallace Bros. Co. Ltd v\s CIT (1948) 16 ITR 240.
2. Mrs. Bacha F. Guzdar v\s CIT (1955) 27 ITR 1.
3. CIT v\s Travancore Sugar and Chemicals Ltd (1973) 88 ITR 1 (SC).
4. CIT Dehradun v\s Enron Oil & Gas India Ltd (2008) 305 ITR 75 (SC).
5. PNB Finance Ltd v\s CIT New Delhi (2008) 305 ITR 75 (SC).
6. CIT v\s Concord Industries Ltd (1979) 119 ITR 458 (Madras).
7. CIT v\s Kalpaka Enterprises (P) Ltd 157 ITR 658 (Kerala).

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8. CIT v\s Bombay Samachar Ltd 74 ITR 723.
9. Punjab State Industrial Development Cor. Ltd v\s CIT (1997) 225 ITR 792 (SC).
10. CIT Dibrugarh v\s Doom Dooma India Ltd. (2009) 310 ITR 392 (SC).
11. CIT New Delhi v\s HCL Comnet System & Services Ltd (2008) 305 ITR 75 (SC).
12. CIT v\s Dunlop Rubber Co. (1977) 107 ITR 182.
13. CIT v\s Bokare Steel Ltd. (1999) 33 CLA 18.
14. CIT Shimla v\s Green world Corporation Parwanoo (Decided on 06\05\09
MANU\SC\0938\200).
15. India Cine Agencies v\s CIT Madras (2009) 308 ITR 98 (SC).
16. CIT v\s Rasik Lal Manek Lal (1975) 95 ITR 656.
17. CIT v\s Gautam Sarabhai Trust (1988) 173 ITR 216 (Guj).
18. CIT v\s Surat Cotton Spinning & Weaving Mills Pvt. Ltd. (1979) 118 ITR 746.
19. Forbes Camp and Co. Ltd v\s CIT (1984) 150 ITR 529 (Bombay).
20. McDowell & Co. v\s CTO (1985) 154 ITR 148 (SC).
21. CIT v\s A. Raman and Co. (1968) 67 ITR 11 (SC).
22. CIT v\s Vadilal Lallubhai and Sakarala Balabhai (1986) ITR 2.
23. CIT v\s Carew and Co. Ltd. (1979) 120 ITR 540 (SC).
24. CIT New Delhi v\s Eli Lilly & Co. (India) Pvt. Ltd. (2009) 312 ITR 225 (SC).

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