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

Sunrise Components Pvt Ltd, an Indian concern, is part of a group having three Indian concerns. The group wishes one concern to furnish Form No. 163 for all. Under Rule 235 of the Income-tax Rules, 2026, which condition must be satisfied?

One Indian concern may furnish the form for the whole group if the group has designated it for the purpose and has conveyed the details of that designated concern in writing to the Assessing Officer. No turnover test or Board approval is required.

  1. AThe group has designated one Indian concern to furnish the information and has conveyed this in writing to the Assessing OfficerCorrect
  2. BOnly the Indian concern with the highest turnover may furnish it, without any designation
  3. CEach Indian concern must furnish its own form, with no joint option
  4. DThe designation must be approved by the Board before furnishing

Explanation

Rule 235(4) allows one Indian concern to furnish information if the group has designated it and conveyed the designated concern's details in writing to the Assessing Officer. No Board approval or turnover test is prescribed. Rule 235(5) adds that the rule has no effect if the designated concern fails to furnish the information properly.

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