Scribd Logo
Upload

Welcome to Scribd!

  • Tax Losses - The Economic Times

    Uploaded by

    puneetmal
    16 views2 pages
    Tax Losses

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Tax Losses

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    16 views2 pages

    Tax Losses - The Economic Times

    Uploaded by

    puneetmal
    Tax Losses

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    10/29/2015

    SupremeCourtrulinggivesclarityoncarryingforwardtaxlossesTheEconomicTimes

    Youarehere: ETHome News PoliticsandNation

    SearchforNews,StockQuotes&NAV's

    SupremeCourtrulinggivesclarityoncarryingforwardtax
    losses
    PostaComment

    BySachinDave,ETBureau|28Oct,2015,06.13AMIST

    MUMBAI:Inwhatcouldbenefitcompaniesmakingacquisitionsandinternalrestructuring,a
    recentSupremeCourtjudgementhasgivenclarityonwhethertaxlossescouldbeallowed
    intheeventofachangeofshareholdingbeyond51%.
    AproblemthatmanyIndiancompaniesfacedwastheuncertaintyonwhetherthebuyerina
    transactionacquisitionorrestructuringofagroupcompanycanaddtaxlosses.The
    incometaxdepartment'sviewwasthattaxlossescausedbythesellercannotbeaddedas
    costtothetransaction.ThiswasstruckdownbytheSC.
    InacaseinvolvingAmcoPowerSystems,theSChasallowedthecompanytoaccruetax
    losses.IndustrytrackerssaidthewholedebatewasaroundSection79oftheIncomeTax
    Act,wherethedisputewaswhethertaxlossescouldbecarriedforward.
    "Thisdecisionwillhelpprovideclarityoncarryforwardoftaxlosses,especially,incaseof
    internalbusinessrestructuringwherethereisreallynotransferoftaxlossesforittobe
    utilisedbyathirdparty,"saidHemalZobalia,seniordirectoratDeloitteIndia.

    ArecentSupremeCourtjudgementhasgivenclarityonwhether
    taxlossescouldbeallowedintheeventofachangeof
    shareholdingbeyond51%.

    ETSPECIAL: Lovevisualaspectofnews?Enjoy
    thisexclusiveslideshowstreat!

    Therearecasesforandagainstoninterpretationofbeneficialownerversusregisteredshareholderforthepurposesofcarryingforward
    taxlossesunderthesection.
    TherecentjudgementisthefirstbytheapexcourtonSection79andcanimpactothersimilarcasesaswell,saidindustrytrackers.They
    saidthejudgementcouldalsopavethewayforclarityaroundfundinginstartups.

    InthefirstweekofOctober,industrybodyAssochamhadsoughtataxationfriendly
    environmentfromthefinanceministry,especiallyaroundtheshareholdingpatternas
    section79oftheIncomeTaxActisprovingtobeahindrance.
    "RestrictionprescribedunderSection79oftheIncomeTaxActshouldnotapplytothe
    startupecosystemwherechangeinshareholdingpatternisduetotheinfusionoffunds
    byinvestorswithoutchangeinthemanagementofthecompanyrunbyoriginal
    founders,"thechamberhadsaidinapresentationsubmittedtoRevenueSecretary
    HasmukhAdhia.
    StayontopofbusinessnewswithTheEconomicTimesApp.DownloaditNow!

    http://economictimes.indiatimes.com/news/politicsandnation/supremecourtrulinggivesclarityoncarryingforwardtaxlosses/articleshow/49561126.cms?

    1/2

    10/29/2015

    SupremeCourtrulinggivesclarityoncarryingforwardtaxlossesTheEconomicTimes

    LiveMarket

    News

    Portfolio

    Mobile

    LiveTV

    Newsletter

    Commodities

    Speed

    QnA

    Blogs

    Alerts

    OtherTimesGroupnewssites

    Livingandentertainment

    HotontheWeb

    Services

    TimesofIndia |

    Timescity | iDiva | Bollywood


    Zoom | Luxpresso
    OnlineSongs | Travel
    Guides | Hotel
    Reviews | Cricbuzz.com

    DailyHoroscope | WeatherinDelhi
    MumbaiMap | Horoscope
    HotelsinDelhi | XiaomiMobile
    Phones

    Bookprintads | Onlineshopping
    Matrimonial | Astrology | Jobs | Property | Buycar | BikesinIndia
    UsedCars | OnlineDeals | RestaurantsinDelhi | MovieShowTimingsin
    Mumbai
    RemittoIndia | BuyMobiles | ListenSongs | VoiceGreetings | Technology
    News | AugmentedReality

    | MumbaiMirror
    TimesNow | Indiatimes
    |
    | Lifehacker
    Gizmodo | Eisamay | IGNIndia
    NavGujaratSamay

    Networking
    itimes | MensXP.com

    Aboutus / Advertisewithus / TermsofUse&GrievanceRedressal / PrivacyPolicy / Feedback / Sitemap / CodeofEthics / Disclaimer

    Copyright2015Bennett,Coleman&Co.Ltd.Allrightsreserved.

    http://economictimes.indiatimes.com/news/politicsandnation/supremecourtrulinggivesclarityoncarryingforwardtaxlosses/articleshow/49561126.cms?

    2/2

    You might also like