All Special Provisions under Section 115JH relating to Foreign Company said to be Resident in India are Described in details below :
(1) [Section 115JH(1)]: Certain Provisions of the Act to be applied with Specified Exceptions, Modifications and Adaptations in case of Foreign Company said to be Resident in India in any Previous Year
Where a foreign company is said to be resident in India in any previous year and such foreign company has not been resident in India in any of the previous years preceding the said previous year, then, notwithstanding anything contained in this Act and subject to the conditions as may be notified by the Central Government in this behalf, the provisions of this Act relating to—
- the computation of total income,
- treatment of unabsorbed depreciation,
- set off or carry forward and set off of losses,
— collection and recovery, and
— special provisions relating to avoidance of tax
shall apply with such exceptions, modifications and adaptations as may be specified in that notification for the said previous year.
However, where the determination regarding foreign company to be resident in India has been made in the assessment proceedings relevant to any previous year, then, the provisions of this sub-section shall also apply in respect of any other previous year, succeeding such previous year, if the foreign company is resident in India in that previous year and the previous year ends on or before the date on which such assessment proceeding is completed.
(2) [Section 115JH(2)]: Consequences if there is a failure to comply with the conditions specified in the notification issued by the Central Government for the purpose of Section 115JH (1)
Where, in a previous year, any benefit, exemption or relief has been claimed and granted to the foreign company in accordance with the provisions of section 115JH (1), and, subsequently, there is failure to comply with any of the conditions specified in the notification issued under section 115JH (1), then,—
(i) such benefit, exemption or relief shall be deemed to have been wrongly allowed;
(ii) the Assessing Officer may, notwithstanding anything contained in this Act, re-compute the total income of the assessee for the said previous year and make the necessary amendment as if the exceptions, modifications and adaptations referred to in section 115JH(1) did not apply; and
(iii) the provisions of section 154 shall, so far as may be, apply thereto and the period of four years specified in section 154(7) of that section being reckoned from the end of the previous year in which the failure to comply with the condition referred to in section 115JH (1) takes place.
