Special provisions relating to foreign company said to be resident in India
Chapter XII-BC – Sec 115JH
1) Foreign company said to be resident in India.
– Where a foreign company is said to be resident in India in any previous year and
– such foreign company has not been resident in India in any of the previous years preceding the said previous year, then,
– notwithstanding anything contained in this Act and subject to the conditions as may be notified by the Central Government in this behalf,
– the provisions of this Act relating to the computation of total income, treatment of unabsorbed depreciation, set off or carry forward and set off of losses, collection and recovery and special provisions relating to avoidance of tax
– shall apply with such exceptions, modifications and adaptations as may be specified in that notification for the said previous year:
Note: Where the determination regarding foreign company to be resident in India has been made in the assessment proceedings relevant to any previous year, then, the provisions of this sub-section shall also apply in respect of any other previous year, succeeding such previous year, if the foreign company is resident in India in that previous year and the previous year ends on or before the date on which such assessment proceeding is completed.
2) Withdrawal of benefits: Where, in a previous year, any benefit, exemption or relief has been claimed and granted to the foreign company in accordance with the provisions of ss(1) and, subsequently, there is failure to comply with any of the conditions specified in the notification then:
– such benefit, exemption or relief shall be deemed to have been wrongly allowed
– the Assessing Officer may, re-compute the total income of the assessee for the said previous year and make the necessary amendment as if the exceptions, modifications and adaptations referred to in ss(1) did not apply; and
– the provisions of Sec 154 shall, so far as may be, apply thereto and the period of four years specified in Sec 154(7) shall be from the end of the previous year in which the failure to comply with the condition referred to in ss (1) takes place
3) Every notification issued under this section shall be laid before each House of Parliament.