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CA Final · Direct Tax Laws & International Taxation · Provisions to Counteract Unethical Tax Practices

Kaveri Industries Ltd, an Indian concern, furnished information under Rule 235 for a group transfer. It is one of three Indian concerns forming a group. The group wants a single Indian concern to furnish the information for all of them. Which statement is correct under Rule 235?

One Indian concern may furnish the information for the whole group only if the group has designated it to act for all the other Indian concerns and the details of the designated concern have been conveyed in writing, on behalf of the group, to the Assessing Officer.

  1. AAny one Indian concern may furnish it if the group has designated it and the Assessing Officer has been informed in writing on behalf of the groupCorrect
  2. BEach Indian concern must always furnish its own separate Form No. 163, with no exception
  3. CThe ultimate holding company abroad must file it directly, and the Indian concerns are relieved
  4. DAny one Indian concern may furnish it without any designation or written intimation

Explanation

Rule 235(4) permits one Indian concern to furnish information for the group if (a) the group has designated it for all other Indian concerns and (b) the designated concern's details have been conveyed in writing on behalf of the group to the Assessing Officer. Both conditions are required, so no-designation and always-separate options are wrong.

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