In this edition, we have come up with an article on acquisition of business by asset purchase or capital. There are situations wherein entity may wish to exit from the business leaving immovable property to the buyer. Tax implications on transfer of business by acquisition of assets are different from that of acquisition of capital. In this article, tax implications in business acquisition through asset and capital has been discussed.

The next article is on recent contrary decisions of 2 benches of the NCLT, on authority of a Power of Attorney/GPA holder to initiate a Section 7 proceedings, under the IB Code, against the Corporate Debtor, and whether the Power of Attorney/GPA holder can be considered as “Authorised Person” or “Authorised Representative”, under the AA Rules, and also whether the Power of Attorney/GPA, is to be backed by a Resolution of the Board of Directors of the FC.

We have also collated certain important judgments under direct tax and provided our comments wherever necessary. I hope that you will have good time reading this edition and please do share your feedback.

Key Topics:

• Business Acquisition - Acquisition of Asset vs Capital
• Is a Board Resolution required by Power of Attorney/GPA Holder to file an application under Section 7, IBC?
• Summary of Income Tax Decisions

On this edition, we have come up with an article on  recent judgement of the Hon’ble NCLAT, New Delhi, which has dealt the issue as to whether amounts raised under a Share Subscription-cum Shareholders Agreement, between the parties is amounts to “Commercial Borrowing”, and constitutes a 'Financial Debt', and any default in repayment of the same constitutes “default”, under the Insolvency and Bankruptcy Code, 2016. This is a important judgement, reaffirming the settled position in law in Pioneer Urban Land and Infrastructure Limited and Anr. vs. Union of India and Ors and Kotak Mahindra Bank Limited v. A. Balakrishnan & Anr.

The next article is on deduction of tax at source under section 194-O of the Income Tax Act, 1961 in respect of e-commerce operations. Section 194-O has been inserted in order to deepen the tax base wherein the e-commerce operator is required to deduct tax source while making payment to e commerce participant. However, there are multiple issues in respect of interpretation and implementation of provisions of section 194-O. In order to remove such difficulties, CBDT has issued Circulars on various instances. In this article, the concept of deduction of TDS under section 194-O has been discussed.

The next article is on recently amended section 43B (h) of the Income Tax Act, 1961. Section 43B(h) has been inserted in order to safeguard the interest of the micro and small enterprises. In this article, the basics of section 43B(h) and its implications have been discussed.

We have also collated certain important judgments under direct tax and provided our comments wherever necessary.

Key Topics:

• Does Money Raised as a Part of Share Subscription-Cum-Shareholders Agreement be Construed as ‘Financial Debt' under IBC?
• TDS on Payment By E- Commerce Operator To E- Commerce Participant - An Analysis of Section 194 - O
• Payments To Micro and Small Enterprises – Section 43B (h)
• Summary of Income Tax Decisions

In this edition, we have come up with an article on recent judgement of the Hon’ble Apex Court, in the matter of DBS Bank Ltd Singapore v. Ruchi Soya Industries Ltd and another, wherein the 2 member bench, referred the matter to a larger bench, as to whether Section 30(2)(b)(ii) of the Insolvency and Bankruptcy Code, 2016, as amended in 2019, entitles the dissenting financial creditor to be paid the minimum value of its security interest?, as the view and ratio of the bench in the instant case, was different from the decision of a coordinate bench, in India Resurgence ARC Private Limited case.

The next article is on the tax sparing credit in the Double Taxation Avoidance Agreement. Various countries have entered into DTAA in order to eliminate potential double taxation. In certain circumstances, CoS may provide tax incentives to foreign companies in order to attract foreign investors. In order to pass on such tax incentives to foreign companies in true sense, tax sparing credit has been incorporated into the DTAA. In this Article, the concept of tax sparing credit has been discussed.

We have also collated certain important judgments under direct tax and provided our comments wherever necessary.

Key Topics:

• Is a Dissenting Financial Creditor Eligible to minimum value of its security interest?
• Information received from foreign jurisdictions vis-à-vis the Indian
• Direct Tax Case Laws

In this edition, we have come up with an article on recent judgement of the Hon’ble NCLAT New Delhi, wherein the matter as to whether a “Inter Corporate Deposit” by a party to another as part of the Joint Venture Agreement , constitutes a “Financial Debt”. This is a important judgement, reaffirming the settled position in law, and will have a lot of bearing on the rights of the parties who enter in to Joint Venture Agreements.

The next article is on the receipt of information from under the exchange of information agreements and consequences under the Indian Evidence Act, 1872. The article deals with requirements under the Indian Evidence Act, 1872 to allow the information from the foreign jurisdictions in respect of various taxpayers in India for the purpose of collection and recovery of taxes.

We have also collated certain important judgments under direct tax and provided our comments wherever necessary.

Key Topics:

• IS GRANT OF “INTER-CORPORATE DEPOSIT” IN A JOINT VENTURE CONSTRUED AS 'FINANCIAL DEBT' UNDER IBC
• Information received from foreign jurisdictions vis-à-vis the Indian
• Direct Tax Case Laws