CBDT extends provisions of Rules 11UE & 11UF to Section 119 of Finance Act, 2012

  • Blog|News|Income Tax|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 19 October, 2021

CBDT extends provisions of Rules 11UE & 11UF to Sec. 119 of Finance Act

Notification No. 120/2021, dated 13-10-2021

The Taxation Laws (Amendment) Act, 2021 (TLA, 2021) inserted three provisos (Fourth, Fifth, and Sixth Proviso) in Explanation 5 to Section 9(1)(i) to give relief to certain eligible entities impacted by the retrospective amendment made to Section 9 by the Finance Act, 2012.

All the pending assessments shall be disposed of by AO, and the demand raised in concluded assessments or rectification orders for indirect transfer of Indian assets made before 28-05-2012 shall be nullified on the fulfillment of specified conditions. The CBDT vide Notification No. GSR 713(E), dated 01-10-2021, has notified rules 11UE and 11UF prescribing such specified conditions.

It should be noted that section 119 of the Finance Act, 2012 had also inserted a validation clause to validate all demands raised/notices sent in connection with the indirect transfer of assets. It was provided that any decision of any Court, Tribunal, etc., including the decision of the Supreme Court in Vodafone’s case (supra), which has held such indirect transfer as not falling within the scope of section 9(1)(i) will be disregarded.

The TLA, 2021, has also brought a consequential amendment to the above provision by inserting a proviso to Section 119 of the Finance Act, 2012. It was provided that Section 119 shall cease to apply to the person who fulfils certain conditions.

To specify such conditions, the Board has notified the relaxation of Validation (section 119 of the Finance Act, 2012) Rules, 2021. The said rules provide that form, manner of furnishing undertaking, and conditions to be satisfied by a person as prescribed by the Rules 11UE and 11UF shall mutatis mutandis apply to section 119 of the Finance Act, 2012.

Click Here To Read The Full Notification

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied