India - Income Tax Act 2010 - Saarc

S. 93 I.T. ACT, 1961 1.53637[(iv) “specified date” shall have the same meaning as assigned to “due date”in Explanation 2 below sub-section (1) of section 139;](v) “transaction” includes an arrangement, understanding or action inconcert,—(A) whether or not such arrangement, understanding or action isformal or in writing; or(B) whether or not such arrangement, understanding or action isintended to be enforceable by legal proceeding.]Avoidance of income-tax by transactions resulting in transfer of income to nonresidents.3893. (1) Where there is a transfer of assets by virtue or in consequence whereof,either alone or in conjunction with associated operations, any incomebecomes payable to a non-resident, the following provisions shall apply—(a) where any person has, by means of 39 any such transfer, either aloneor in conjunction with associated operations, acquired any rights byvirtue of which he has, within the meaning of this section, power toenjoy, whether forthwith or in the future, any income of a nonresidentperson which, if it were income of the first-mentionedperson, would be chargeable to income-tax, that income shall, whetherit would or would not have been chargeable to income-tax apart fromthe provisions of this section, be deemed to be income of the firstmentionedperson for all the purposes of this Act;(b) where, whether before or after any such transfer, any such firstmentionedperson receives or is entitled to receive any capital sum thepayment whereof is in any way connected with the transfer or anyassociated operations, then any income which, by virtue or in consequenceof the transfer, either alone or in conjunction with associatedoperations, has become the income of a non-resident shall, whetherit would or would not have been chargeable to income-tax apart fromthe provisions of this section, be deemed to be the income of the firstmentionedperson for all the purposes of this Act.Explanation.—The provisions of this sub-section shall apply also in relation totransfers of assets and associated operations carried out before the commencementof this Act.(2) Where any person has been charged to income-tax on any income deemed tobe his under the provisions of this section and that income is subsequentlyreceived by him, whether as income or in any other form, it shall not again bedeemed to form part of his income for the purposes of this Act.37. Substituted by the Finance Act, 2002, w.e.f. 1-4-2002. Prior to its substitution, clause (iv)read as under :‘(iv) “specified date” means,—(a) where the assessee is a company, the 31st day of October of the relevantassessment year;(b) in any other case, the 31st day of July of the relevant assessment year;’38. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.39. For the meaning of the terms/expressions “by means of” and “purpose”, see Taxmann’sDirect Taxes Manual, Vol. 3.