Income-tax
(Seventeenth Amendment) Rules, 2013 - Insertion of Rules 10U, 10UA, 10UB &
10UC and Form Nos. 3CEG, 3CEH & 3CEI
Notification No. 75/2013, [F.NO.142/19/2013-TPL]/SO
2887(E), dated 23.09.2013
In exercise of
the powers conferred by sections 101 and 144BA read with section 295 of the
Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby
makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the
Income-tax (17th Amendment) Rules, 2013.
(2)
They shall come into force on the 1st day of April, 2016.
2. In the
Income-tax Rules, 1962,-
(a) after rule 10T, the following rules
shall be inserted, namely:-
'DA. Application of General Anti Avoidance Rule
10U. Chapter X-A not to apply in certain cases.-
(1) The provisions of Chapter X-A shall not
apply to-
(a) an arrangement
where the tax benefit in the relevant assessment year arising, in aggregate, to
all the parties to the arrangement does not exceed a sum of rupees three crore;
(b) a Foreign
Institutional Investor,-
(i) who is an
assessee under the Act;
(ii) who has not
taken benefit of an agreement referred to in section 90 or section 90A as the
case may be; and
(iii) who has
invested in listed securities, or unlisted securities, with the prior
permission of the competent authority, in accordance with the Securities and
Exchange Board of India (Foreign Institutional Investor) Regulations, 1995 and
such other regulations as may be applicable, in relation to such investments;
(c) a person, being
a non-resident, in relation to investment made by him by way of offshore
derivative instruments or otherwise, directly or indirectly, in a Foreign
Institutional Investor;
(d) any income
accruing or arising to, or deemed to accrue or arise to, or received or deemed
to be received by, any person from transfer of investments made before the 30th
day of August, 2010 by such person.
(2) Without prejudice to the provisions of
clause (d) of sub-rule (1), the provisions of Chapter X-A shall apply to any arrangement,
irrespective of the date on which it has been entered into, in respect of the
tax benefit obtained from the arrangement on or after the 1st. day of April,
2015.
(3) For the purposes of this rule,-
(i) "Foreign
Institutional Investor" shall have the same meaning as assigned to it in
the Explanation to section 115AD;
(ii) "off shore
derivative instrument" shall have the same meaning as assigned to it in
the Securities and Exchange Board of India ( Foreign Institutional Investor)
Regulations, 1995 issued under Securities and Exchange Board of India Act, 1992
(15 of 1992) ;
(iii)
"Securities and Exchange Board of India" shall have the same meaning
as assigned to it in clause (a) of sub-section (1) of section 2 of the
Securities and Exchange Board of India Act, 1992 (15 of 1992);
(iv) "tax
benefit" as defined in clause (10) of section 102 and computed in
accordance with Chapter X-A shall be with reference to—
(a) sub-clauses (a)
to (e) of the said clause , the amount of tax; and
(b) sub-clause (f)
of the said clause, the tax that would have been chargeable had the increase in
loss referred to therein been the total income.
10UA. Determination of consequences of impermissible
avoidance arrangement –
For the purposes
of sub-section (1) of section 98, where a part of an arrangement is declared to
be an impermissible avoidance arrangement, the consequences in relation to tax
shall be determined with reference to such part only.
10UB. Notice, Forms for reference under section
144BA-
1) For the purposes of sub-section (1) of
section 144BA, the Assessing Officer shall, before making a reference to the
Commissioner, issue a notice in writing to the assessee seeking objections, if
any, to the applicability of provisions of Chapter X-A in his case.
(2) The notice referred to in sub-rule (1)
shall contain the following: -
(i) details of the
arrangement to which the provisions of Chapter X-A are proposed to be applied;
(ii) the tax benefit
arising under the arrangement;
(iii) the basis and
reason for considering that the main purpose of the identified arrangement is
to obtain tax benefit;
(iv) the basis and
the reasons why the arrangement satisfies the condition provided in clause (a),
(b), (c) or (d) of sub-section (1) of section 96; and
(v) the list of
documents and evidence relied upon in respect of (iii) and (iv) above.
(3) The reference by the Assessing Officer
to the Commissioner under sub-section (1) of section 144BA shall be in Form No. 3CEG.
(4) Where the Commissioner is satisfied
that the provisions of Chapter X-A are not required to be invoked with
reference to an arrangement after considering-
(i) the reference
received from the Assessing Officer under sub-section (1) of section 144BA; or
(ii) the reply of
the assessee in response to the notice issued under sub-section (2) of section 144BA,
he shall issue directions to the Assessing Officer in Form No. 3CEH.
(5) Before a reference is made by the
Commissioner to the Approving Panel under sub-section (4) of section 144BA, he shall
record his satisfaction regarding the applicability of the provisions of
Chapter X-A in Form No. 3CEI and
enclose the same with the reference.
10UC. Time
limits.—
(1)For the purposes
of section 144BA,-
(i) no directions
under sub-section (3) of section 144BA shall be issued by the Commissioner
after the expiry of one month from the end of the month in which the date of
compliance of the notice issued under sub-section (2) of section 144BA falls;
(ii) no reference
shall be made by the Commissioner to the Approving Panel under sub-section (4)
of section 144BA after the expiry of two months from the end of the month in
which the final submission of the assessee in response to the notice issued
under the sub-section (2) of section 144BA is received;
(iii) the
Commissioner shall issue directions to the Assessing Officer in Form No. 3CEH,
-
(a) in the case
referred to in clause (i) of sub-rule (4) of rule 10UB, within a period of one
month from the end of month in which the reference is received by him; and
(b) in the case
referred to in clause (ii) of sub-rule (4) of rule 10UB, within a period of two
months from the end of month in which the final submission of the assessee in
response to the notice issued under sub-section (2) of section 144BA is received
by him.";
(b) in Appendix II,
after Form No. 3CEF, the following Forms shall be inserted, namely:-
.
.
.
.
.
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