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CBDT PRESS RELEASE, DATED 11-1-2018 amended to expand the scope of exchange
of Information between the two countries.
The Central Board of Direct Taxes (CBDT)
has stepped up actions under the Prohibition
of Benami Property Transactions Act which CBDT relaxes MAT norms for the
came into force w.e.f. 1st November, 2016. The companies under insolvency process:
Act provides for provisional attachment and CBDT
subsequent confiscation of benami properties,
whether movable or immovable. It also CBDT PRESS RELEASE, DATED 6-1-2018
allows prosecution of the beneficial owner,
the benamidar and the abettor to benami A company while computing MAT under
transactions, which may result in rigorous the existing provisions of section 115JB of
imprisonment up to 7 years and fine upto the Income-tax Act, 1961, can reduce the
25% of fair market value of the property. amount of brought forward loss or unabsorbed
depreciation, whichever is less, from its book
The Income-tax Dept. has already attached profit.
900 benami properties worth over ` 3500
crore, including immovable properties of This provision is creating hardships for the
more than ` 2900 crore. Attachments include company against whom an application for
plots of land, flats, shops, jewellery, vehicles, corporate insolvency resolution process has
deposits in bank accounts, fixed deposits, etc. been admitted by the Adjudicating Authority
under section 7 or section 9 or section 10 of
CBDT noti fi es revised arti cle 26 on the Insolvency and Bankruptcy Code, 2016.
Exchange of Informati on under Therefore, it has been decided by the CBDT
India-Brazil DTAA that with effect from Assessment Year 2018-
19 (i.e., Financial Year 2017-18), in case of a
company, against whom an application for
NOTIFICATION NO. SO 93(E) [F.NO. corporate insolvency resolution process has
500/101/2006-FT&TR-V], DATED 4-1-2018
been admitted by the Adjudicating Authority,
The Central Board of Direct Taxes (CBDT) shall be allowed to reduce the aggregate
has notified the provisions of protocol entered amount of brought forward losses and the
into between Government of India and the unabsorbed depreciation from book profit.
Government of the Federative Republic of
Brazil DTAA. Article 26 of the DTAA has been lll
Corporate Lawsrporate Laws
Co
Case Laws account of some intervening factors,
took place
Penalty wasn’t sustainable as sus-
picious transacti ons, abandoned on HDFC Bank Ltd. v. Director, FIU [2017] 88
taxmann.com 292 ((PMLA-AT), New Delhi)
169
January 20 To January 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 41 u 63
