Vol. V | No.

I | September 2023
Your Quarterly Companion on Tax & Allied Topics

The Chamber of Tax Consultants

Mumbai | Delhi
www.ctconline.org
 THE CHAMBER OF TAX CONSULTANTS
3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai – 400 020
Phone : 2200 1787/2209 0423/2200 2455 • E-Mail: jou@ctconline.org
Website : www.ctconline.org

MANAGING COUNCIL STUDENT COMMITTEE

President Chairperson
Haresh Kenia Niyati Mankad

Vice President Vice-Chairperson

Vijay Bhatt Charmi G. Shah
Ex-officio
Hon. Treasurer
Haresh Kenia • Vijay Bhatt
Mehul Sheth
Convenors
Hon. Jt. Secretaries Charmi A. Shah • Viral Shah
Neha Gada • Vitang Shah
Past Presidents
Imm. Past President A. S. Merchant • Hitesh R. Shah
Parag Ved
Parimal Parikh • Vipul Choksi
Members Advisor Office Bearer
Ajay Singh Vitang Shah
Abhitan Mehta Jayant Gokhale
Past Chairperson
Ameya Kunte Ketan Vajani Varsha Galvankar
Anish Thacker Kirit Dedhia Managing Council Member
Ankit Sanghavi
Ankit Sanghvi Kishor Vanjara
Members
Ashok Mehta Mahendra Sanghvi
Ananya Gupta Mallika Devendra
Ashok Sharma Niyati Mankad Ashish Mehta Priti Savla
Dharan Gandhi Paresh Shah Bhavik Shah Radha Halbe
Dinesh Tejwani Premal Gandhi Bhavya Sundesha Rahul Hakani

Hemang Shah Tejas Parikh Chirag Vajani Raj Khona

Hrudyesh Pankhania Sachin Maher
Hinesh Doshi Vipul Choksi - Editor
(The Chamber’s Journal) Jai Lodha Sashank Dundu

Special Invitees Jas Sanghavi Shashank Mehta

Gopal Kandarpa • Hitesh R. Shah
Jignasha Hemani

STUDENT INVITEE MEMBERS

Akash Shirore Dhruv Shah Disha Jain Mahika Kandrapa Nishtha Gada

NOTE
“Opinions, views, statements, results, replies etc. published in Jignyasa are of the respective authors and contributors. Neither the
Chamber of Tax Consultants nor the Authors/Contributors are responsible in any way whatsoever for any personal or professional
liability arising out of the same.”

“No part of this publication may be reproduced or transmitted in any form or by any means without the permission in writing from
the Chamber of Tax Consultants.”

READER'S SUGGESTIONS AND VIEWS

We invite the suggestions and views from readers for improvement of Jignyasa.
Kindly send your suggestions to jou@ctconline.org

2 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

Become a Student Become

Member of The Chamber of Tax Consultants
a Student Member of Chamber of Tax Consultants
Become a Student Member of Chamber of Tax Consultants

What What
are are
thetheinitiatives/programs organised by the Chamber for Students?
initiatives / programs organised by Chamber for Students?
What are the initiatives / programs organised by Chamber for Students?

Webinaron
Webinar on Udaan––AA
Udaan
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CA Student Nationallevel
National level
technicaltopics
technical topicsof
of MotivationalChat
Motivational Chat
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practical Showwith
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importance
importance stalwarts
stalwarts

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Entertainment Inter-firmFootball
Inter-firm Football
programsfor
programs forrising
rising
Industrialvisits
Industrial visits andCricket
and Cricket
talentincluding
talent including
tournaments
tournaments
MusicalNight
Musical Night

What are the benefits of becoming a student member of the Chamber?

Whatare
What arebenefits
benefitsof
ofbecoming
becomingstudent
studentmember
memberof
ofthe
theChamber?
Chamber?

FreeAnnual
Free Annual
subscriptionto
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students' quarterlye-e-
journal- -Jignyasa
journal Jignyasa
FreeAnnual
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beyond academics version ofofThe
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Regularupdates
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opportunities
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of the Chamber
of the Chamber
Specialdiscounts
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on
selectmember
select member
events
events

Who
Who can become a Student
Who canbecome
becomeaaStudent
Member?
can StudentMember?
Member?

Any person, who: Anyperson,

Any person,who:
who:

 has completed 18 years of completed

 has age; 18 years of age
 has completed 18 years of age
  isisto
is not otherwise eligible notbe
not otherwise eligibleto
a member
otherwise eligible toof
beathe
be amember
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Chamber; theChamber;
Chamber;
 isis pursuing
pursuing his/her
his/her education
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as aa student
student and
and has
has enrolled
enrolled as
as aa student
student ofof Law,
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 is pursuing his/her education as aCost
Accountancy,
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Cost and hasAccountancy,
and Management
and Management enrolled Company
Accountancy, as a student
Company Secretary,of
Secretary, Law, Chartered
Chartered
Chartered Financial
Financial Accountancy, Cost and
Management Accountancy, Company Secretary, Chartered Financial Analysts, Business Management or Management
Accountancy or Masters in Commerce or such other course approved for this purpose by the Managing Council shall
be eligible to be a Student Member.

What are the fees for becoming a Student Member?

The fees for becoming a student member is merely Rs. 590/- [Rs. 500/- + Rs. 90 (GST @ 18%)]

How can one enroll as a Student Member?

You may download the membership form using the below mentioned link
Link : https://rb.gy/rw3xde
You can also get in touch with the Chamber's office at:
Address : 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai 400 020
Email : jou@ctconline.org
For any queries, you can also get in touch with Mr. Hitesh Shah (Manager) at:
Mobile : 7977258507

www.ctconline.org 33
 POLICY FOR CONTRIBUTION
OF ARTICLES FOR JIGNYASA

Who can contribute?

The Student Members of The Chamber of Tax Consultants shall be allowed to contribute articles to the
students’ e-journal “Jignyasa”

For which columns shall contributions be accepted?

Every issue of Jignyasa shall have the following four columns for contributions from students:

1. Information Technology

2. Current topics related to the profession

3. SOP on subjects that are related to upcoming due dates

4. A general topic that is relevant to the student members of the Chamber

What is the selection process of the article for publishing?

The selection of the articles to be published shall be based on the following parameters:

1. The topics should be relevant to the Students Members of the Chamber covering the various
areas of practice.

2. The Article to be published should be original and must adhere to strict originality guidelines of
the Chamber. A declaration to this effect should be submitted to the Chamber.

3. Subjects related to current topics or subjects which are related to the due dates falling in the
next quarter shall be given preference.

What are the technical requirements for the article?

1. The article should contain an executive summary of around 100 words.

2. The list of references should be submitted at the end of the article.

3. A photograph of the author should be provided along with the article.

4. The article should be shared only in word format. No other format shall be accepted.

5. There is no specific restriction on the number of words for the article, but preference shall be
given to a well written, the most technically correct, complete and concise article.

4 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

What is the review process?

The student is advised to approach a member of the Chamber to be his/her mentor for the article. If
the interested student cannot find a mentor, the committee shall help him/her approach the members.

Each article shall then be forwarded to an expert for vetting and verification.

The article post vetting and verification shall be forwarded to the author with suggestive changes. Once
approved by the author, the amended article shall be forwarded for publishing.

The articles received which are not published in the current issue of Jignyasa shall be parked in the
Chamber’s locker for the next issue.

Articles that are not found suitable for publication, communication to the Author of the article shall
be made to that effect.

Invitation to STUDENT MEMBERS to contribute articles for Jignyasa

The Student Committee of the Chamber invites the Student Members to contribute articles for the
e-journal for Students – Jignyasa. The objective of the committee is to make a major section of the
journal - for the students by the students. The students can contribute articles on latest updates in
the tax and allied laws, Standard Operating Procedures that can be used for the upcoming due dates,
current scenarios in various industries or any other topic. You can send through your article in word
format on jou@ctconline.org along with your name, firm name/college name and a photograph. From
among the articles received, the ones approved by the committee shall be published.

www.ctconline.org 55
 INDEX
Sr. Particulars Student Page
No. Contributors No.
1 President & Chairperson’s Message 7
2 Various forthcoming programs of the Chamber relevant for Students 10
3 Impounding and Seizure of Passport: Perplexing Realities? Anuja Pawar 11
Mentor : Kavita Solunke, Advocate
Editor : Shruti Desai, Advocate
4 Corporate Social Responsibility under Kayva Prabhu / 17
The Companies Act, 2013 Ameesha Kohli
Mentor & Editor : CS Archana Pareek
5 Fostering Innovation and Growth: Tax Incentives for Startups in India Priyanandan Kumar 26
Mentor : CA Vishal Shah
Editor : CA Anish Thacker
6 Withdrawal of Application Under IBC Post - Admission Neha Londhe 31
Mentor : Priyal Savla, Advocate
Editor : CA Rajendra Ganatra
7 Transfer Pricing Implications for Specified Domestic Transactions: Tushar Khatri 34
A Comprehensive Analysis
Mentor : CA Chirag Vajani
Editor : CA Natwar Thakrar
8 Direct Tax Amendments under the Finance Act, 2023 Sailee Kambli / 40
Mentor : CA Ankit Sanghavi Summaiya Shaikh
Editor : CA Charmi G. Shah
9 Report on “6th The Dastur National Moot Court Competition, 2023” Nishtha Gada 45
Editor: CA Charmi G. Shah
10 Report on “The Dastur Essay Competition, 2023” Akash Shirore 47
Editor: CA Viral Shah
11 Report on “The New Scheme of CA Education & Training” Mahika Kandarpa 49
Editor: CA Charmi A. Shah
12 Insights from the “Income Tax Returns, AIS & TIS – Nishtha Gada 51
Do’s & Don’ts' Webinar”
Editor: CA Viral Shah
13 Report on “Webinar on Tax Audit – Student Perspective” Akash Shirore 53
Editor: Niyati Mankad, Advocate
14 Summary of Udaan Episode 5 with Mr. Vikram Nankani, Senior Akash Shirore 55
Advocate
Editor: CA Viral Shah
15 A Report on the “E-Certificate Course on The Key Compliances Mahika Kandarpa 59
under The Companies Act, 2013”
Editor: CA Viral Shah

6 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

President and
Chairperson’s Message
UNLOCKING YOUR POTENTIAL:
A JOURNEY IN LAW, ACCOUNTANCY, AND COMPANY SECRETARYSHIP

Dear Ambitious Students,

In the pursuit of greatness, there are few journeys as challenging and rewarding as those in the fields
of law, chartered accountancy, company secretaryship, and allied professions. Whether you’re part of
the Student Committee of the Chamber of Tax Consultants, or are independently navigating your path,
we wholeheartedly appreciate and encourage each one of you.

A Shared Aspiration
As students on this path, you have embarked on a noble quest for knowledge, excellence, and
professional fulfillment. Your choice to pursue law, chartered accountancy, company secretaryship,
or related disciplines is a testament to your ambition and dedication. It is a choice that carries the
promise of a rewarding career that can make a substantial impact on society.

Inspiration and Motivation

The journey ahead may seem daunting, filled with long hours of study, demanding exams, and rigorous
practical training. Yet, remember that challenges are but stepping stones to success. It's essential to stay
inspired and motivated throughout your academic and professional pursuits. Here are a few reminders
to keep you going:

Passion and Purpose: Let your passion for your chosen field be your guiding star. When you love
what you do, the journey becomes less about the destination and more about the joy of learning and
growing.

Resilience: Embrace setbacks as opportunities for growth. Success often comes to those who persevere
through difficulties and emerge stronger on the other side.

Continuous Learning: In these dynamic fields, knowledge is ever-evolving. Make learning a lifelong
commitment. Stay updated with the latest trends, regulations, and technologies.

Community Support: Seek mentorship and connect with peers who share your aspirations. The
Chamber of Tax Consultants, offers a valuable platform for networking and knowledge sharing.

www.ctconline.org 77
As you embark on this journey, it’s important to remember the wisdom imparted in the Bhagavad Gita
(Chapter 4, Verse 7):

"meJe&³eesefve<eg keÀewvles³e cetle&³eë mecYeJeefvle ³eeë~

leemeeb ye´ïe cenÐeesefvejnb yeerpeÒeoë efHelee~~"

Translation: O son of Kunti, all forms of life are My creation, and I am the seed-giving father.

This shloka reminds us that knowledge and learning are essential for our growth and evolution. Just as
Lord Krishna is the seed-giving father of all life, knowledge is the seed that nurtures your professional
and personal development.

Additionally, consider the wisdom of another verse from the Bhagavad Gita (Chapter 4, Verse 33):

"Þes³eevêJ³ece³eeÐe%eep%eeve³e%eë HejbleHe~
meJe¥ keÀcee&efKeueb HeeLe& %eeves HeefjmeceeH³eles~"

Translation: O chastiser of the enemy, sacrifice in knowledge is superior to any material sacrifice. After
all, O Partha, all sacrifices of work culminate in transcendental knowledge.

This verse underscores the importance of knowledge, emphasizing that it surpasses material wealth
and is the culmination of all endeavors. Your pursuit of knowledge in the fields of law, chartered
accountancy, and company secretaryship is a sacred and noble sacrifice that leads to enlightenment
and success.

While your commitment to your studies is crucial, it's equally important to maintain a healthy work-life
balance. Burnout can hinder your progress, so take time for yourself, your family, and your hobbies. A
well-rested and balanced individual is better equipped to excel both academically and professionally.

Joining the Chamber of Tax Consultants

For those of you who are not yet members of the Chamber of Tax Consultants, we encourage you to
consider becoming a part of this esteemed community. Membership offers numerous benefits:

Networking Opportunities: Connect with industry experts, experienced professionals, and like-minded
peers who can guide and inspire you on your journey.

Learning and Development: Access to seminars, workshops, and events that enhance your knowledge
and skills, making you a more competitive professional.

Exposure and Recognition: Membership lends credibility to your profile and opens doors to career
opportunities.

Thank You to Our Student Members

To our dedicated student members, we extend our gratitude for choosing to be a part of the Chamber
of Tax Consultants. Your active participation enriches our community, and your enthusiasm drives us to

8 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

continue supporting your growth. Together, we strive for excellence in the field of taxation and related
disciplines.

In closing, remember that your chosen path is not just a career; it's a calling. Embrace it with passion,
dedication, and an unwavering commitment to your dreams. Also, remember that you are part of a
community that values excellence and dedication. The journey may be challenging, but the rewards are
boundless and with the right mindset and support, you can achieve greatness.

We have immense faith in your abilities and potential. The Chamber of Tax Consultants, is here to
support and guide you every step of the way. Together, we can create a brighter future for the
professions, and you are an integral part of that vision.

We wish you success, fulfillment, and endless inspiration on your remarkable journey ahead.

Warm regards,

CA Haresh Kenia Niyati Mankad, Advocate

President Chairperson
Student Committee

www.ctconline.org 99
 FORTHCOMING PROGRAMMES

Sr. Event Tentative Months

No.

1. Udaan Episodes 2023-24

2. E-Webinar on GST Annual Return and GST Reconciliation November, 2023

Statement

3. Mediation Act, 2023 Webinar/Workshop November/December, 2023

4. CTC National GST Moot Court Competition January, 2024

5. 3rd Tech Series December, 2023

6. The Dastur Debate Competition January, 2024

7. Legal Practice Orientation Course January/February, 2024

8. Orientation on Real Estate Laws February/June, 2024

9. The Dastur Essay Competition February, 2024

10. Industrial Visit January/February, 2024

11. The Dastur National Tax Moot Court Competition 2023-24 2024

12. CA Student Orientation Course March, 2024

13. Bank Audit March, 2024

14. Webinars on Opportunities – global as well as domestic in

the field of Law, CA, CS, etc

10 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

Impounding and Seizure of Passport:

Perplexing Realities?
Anuja Pawar Kavita Solunke
Student of Government Advocate
Law College, Mumbai

INTRODUCTION Now let us see what is seizure of a passport and

We read in the newspaper in legal columns when an authority seizes one’s passport:
“X’s passport is seized”, or “Y’s passport Definitions explained: In general parlance, the
is impounded”. So let us see today what the meaning of the word ‘Seize’ is to forcibly take
difference between these two words. Why these possession (of a person or property)1. A seizure
two different terminologies is used by lawyers and happens when someone is caught at the border
or reporters in specific different words that have for doing illegal acts. Like (i) entry without visa, or
similar connotations in layman’s language? immigration papers (b) the holder of a passport
Many times, there is uncertainty between the or travel document is in wrongful possession.
terms ‘seizing of a passport’ and ‘impounding of (c) If the passport was obtained by suppression
a passport'. Though there is a minor and minimal or on the basis of wrongful information. (d) If it
difference between them in the English language, is necessary to protect the sovereignty, integrity,
but in law there is a significant difference between security, friendly relations or public order in India.
the two as they are dealt with by different Acts (e) smuggling of contraband goods. When a
and different authorities are empowered for the person or authority takes custody of anything
action. This article will be helpful in clearing these that was previously out of their possession, it is
perplexities. considered to have been seized at that specific

1. The Law Lexicon, a Legal Dictionary of Legal Terms and Phrases Judicially Defined, by Justice T.P Mukherjee (Fifth and
Enlarged Edition)

www.ctconline.org 11
11
 time. Seizures are, therefore, forcefully carried out seize any property which may be alleged or
at a specific time. “Seizing” also describes the suspected to have been stolen, or which may
ongoing action of the police taking or seizing the be found under circumstances which create
goods that have been brought in illegally at the suspicion of the commission of any offence.”
border. The action of firmly grasping anything. For
The police officer in the course of an investigation
example, At the border, the cops are seizing the
can seize any property under this Section if such
contraband.
property is alleged to be stolen or is suspected
While the definition of the word 2"impound" is to be stolen or is an object of the crime under
"to place a suspected document in the custody of investigation or has a direct link with the
the law, when it is produced at trial." Therefore, commission of the offence for which the police
the term "impounding" refers to keeping a officer is investigating into. It validates the power
good or document that has been confiscated of police officers to seize certain property.
in possession. The phrase "impound" is widely
In one of the landmark cases namely, in M.T.
used in the legal context to refer to the action
Enrica Lexie and Ors. vs. Doramma and Ors.3,
of a government entity or law enforcement
the Apex Court held that: -
agency taking possession of someone's property,
frequently as a result of a legal dispute, a criminal “13. The police officer in course of
investigation, or a legal infringement. For example, investigation can seize any property under
The Court is currently considering whether to Section 102 if such property is alleged to be
impound the documents as evidence in the case. stolen or is suspected to be stolen or is the
The impounding of a passport is by virtue of a object of the crime under investigation or has
court order. direct link with the commission of offence for
which the police officer is investigating into.
LAW PROVIDING SEIZURE OF A PASSPORT A property not suspected of commission
of the offence which is being investigated
Seizing a passport refers to the act of taking
into by the police officer cannot be
immediate possession of the passport, often in
seized. Under Section 102 of the Code,
urgent or critical situations, with the intention of
the police officer can seize such property
preventing an individual from leaving the country
which is covered by Section 102(1) and no
or taking certain actions. Passport seizure is
other.
usually associated with more serious and urgent
scenarios, such as suspected involvement in The term ‘any offence’ as used in this Section 102
criminal activities, national security risks, terrorism, is wide enough to cover offences created by the
or imminent threats. Defence of India Rules, or even non-cognizable
offences4. Moreover, only a police officer has the
Section 102(1) of the Code of Criminal Procedure,
power to seize under this Section and no other
1973 ("CrPC”) deals with the powers of the police
person/officer. Accordingly, in the case of Badku
officers to seize certain property which reads as
Jyoti Savant vs. State of Mysore 5, it was held
under:
that an officer appointed under the Central Excise
“102. Power of police officers to seize and Salt Act is not a police officer and cannot
certain property. (1) Any police officer, may seize any property under Section 102. The term

2. The Law Lexicon with Legal Maxims by P. Ramanatha Aiyar (Reprint Edition 1993)
3. M.T. Enrica Lexie and Ors. vs. Doramma and Ors. (02.05.2012 - SC): MANU/SC/0409/20
4. Babulal Agarwalla vs. Province of Orissa And Ors. AIR 1954 Ori 225
5. Badku Jyoti Savant vs. State of Mysore AIR 1966 SC 1746

12 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

‘any property’ is said to include a passport as time, this retention is equivalent to keeping the
well. property or document impounded. Impounding
a passport is different from impounding other
Apart from this Section 102 which empowers any
documents. Impounding of a passport involves
police officer to seize a passport, similar powers
the process of formally taking possession of
are also provided in Section14 of the Passport Act,
the passport for legal or administrative reasons,
1967 which deals with the Power of search and
typically involving a long-term holding of the
seizure, and reads as under: —
document. Illegal or wrongful impounding of a
“14. Power of search and seizure. — passport may result in infringing a person's right
to travel abroad which is a fundamental right
(1) Any officer of customs empowered by a
guaranteed under Article 21 of the Constitution of
general or special order of the Central
India hence, the same is taken very seriously and
Government on this behalf and any
exercised only when all the criteria as laid down
officer of police or emigration officer not
in Section 10 of the Passport Act are satisfied.
below the rank of a sub-inspector may
search any place and seize any passport Passport authority is established under the
or travel document from any person Passport Act which is an officer or authority
against whom a reasonable suspicion empowered under rules made under this Act to
exists that he has committed any offence issue passports or travel documents and includes
punishable under section 12. the Central Government.
(2) The provisions of the Code of Criminal Sec. 10(3) of the Passport Act, 1967 deals with the
Procedure, 1973, relating to searches and power of the Passport Authority to impound or
seizures shall, so far as may be, apply to cause to be impounded or revoke a passport or
searches and seizures under this section.” travel document, which reads as under:
Section 12 of the Passport Act lays down various “10. Variation, impounding and revocation
punishable offences under the Act such as of passports and travel documents
contravention of a provision of Sec.3, knowingly
……….
furnishing of false information for obtaining
passport/ travel document or altering or attempt (3) The passport authority may impound
to alter entries in passport/travel document, or cause to be impounded or revoke a
or failure in getting passport/ travel document passport or travel document, -
inspected, or using passport/travel document
(a) if the passport authority is satisfied
of another, etc. This, Section 14 empowers not
that the holder of the passport
only police officer or emigration officer but
or travel document is in wrongful
also an officer of customs who is empowered
possession thereof;
by a general or special order of the Central
Government to search any place and seize any (b) if the passport or travel document
passport or travel document from any person was obtained by the suppression of
against whom there is a reasonable suspicion that material information or on the basis
he has committed an offence punishable under of wrong information provided by
Section 12 of the Passports Act, 1967. the holder of the passport or travel
document or any other person on
LAW PROVIDING IMPOUNDING OF A his behalf;
PASSPORT
Provided that if the holder of such
If a passport or document is kept after being passport obtains another passport
seized and retained for a certain amount of the passport authority shall also

www.ctconline.org 13
13
 impound or cause to be impounded been so issued or an order has been so
or revoke such other passport] made.”
(c) if the passport authority deems it According to the aforementioned section, the
necessary so to do in the interests of Passport Authority may use its discretion to
the sovereignty and integrity of India, impound or revoke the passport or travel
the security of India, friendly relations of document in the above condition i.e., if the
India with any foreign country, or in the passport is in wrongful possession, if the wrong
interests of the general public; information is provided by the passport holder, if
the holder has been convicted by a court in India
(d) if the holder of the passport or travel
for any offence, if any conditions of passport is
document has, at any time after the
contravened etc. For Example, Dr Vijay Mallya, an
issue of the passport or travel document,
Indian business magnate and former lawmaker,
been convicted by a court in India for
has been experiencing several legal troubles,
any offence involving moral turpitude
including the revocation/ impounding of his
and sentenced in respect thereof to
passport by Indian officials. After leaving the
imprisonment for not less than two
country in April 2016, Dr Vijay Mallay’s passport
years;
was revoked by Indian authorities on suspicion of
(e) if proceedings in respect of an offence financial misdeeds and loan defaults associated
alleged to have been committed by with his now-defunct Kingfisher Airlines. He is
the holder of the passport or travel charged with owing a sizable sum of money to
document are pending before a criminal several Indian banks.
court in India.
In certain cases, some of the entries found in the
(f) if any of the conditions of the passport are sought to be used as evidence of
passport or travel document has been some fact that is relevant for deciding a case, in
contravened; such cases, for that purpose, the passport need
not be impounded, much against the provisions
(g) if the holder of the passport or travel
of the Passport Act dealing with the impounding
document has failed to comply with a
of passport, xerox copies or typed copies of the
notice under sub-section (1) requiring
passports can be prepared and the same can be
him to deliver up the same;
certified by the Court and retained in the case
(h) if it is brought to the notice of the bundle to be used as evidence6.
passport authority that a warrant or
summons for the appearance, or a DISTINCTION- OBITER DICTUM
warrant for the arrest, of the holder of Seizing a passport is a more immediate and
the passport or travel document has urgent action taken to prevent someone from
been issued by a court under any law leaving the country or engaging in dangerous
for the time being in force or if an order activities. On the other hand, impounding a
prohibiting the departure from India passport is a formal and usually lengthy process
of the holder of the passport or other done for legal or administrative reasons to enforce
travel document has been made by any compliance or address specific issues related to
such court and the passport authority is the individual’s circumstances. The Supreme Court
satisfied that a warrant or summons has

6. S.Narmadha vs. The State, 2012 SCC OnLine Mad 1231

14 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

in the case of Suresh Nanda vs. CBI has clearly Bombay High Court relying on the decision of the
explained the difference between the seizure of Madras High Court in the case of Veenita Gupta
a passport and the impounding of a passport. vs. State (Cri. R.C. No. 1062 of 2010, decided
It was held 7 that the Passports Act, 1967 was on 02.11.2010) directed the CBI to return the
a Special Act and its provisions overrode the passport to the Petitioner and granted liberty to
provision of Section 104 of the Criminal Procedure the Passport Authority to initiate the proceedings
Code (which gives the court power to impound for impounding the passport in accordance
documents) by noting the provisions of Section with Section 10(3)(e) of the Passport Act, 1967.
10(3)(e) of that Act as well as the rulings of two The court refused to allow the CBI to send the
Constitution Benches in Satwant Singh Sawhney passport to the Passport Authorities for action u/s
vs. D. Ramarathnam, Assistant Passport Officer8 10(3)(e) of the Passport Act as the CBI was guilty
and Maneka Gandhi vs. Union of India9. The of retaining the passport for a lapse of 3 years
Court also made clear the difference between and Court could not allow illegality to continue
merely seizing a passport and impounding it. The in perpetuity.
Supreme Court emphasised that while the Police
In Vinod Kumar Asthana vs. Joint Secretary
may have the jurisdiction to seize a passport
(PSP) & Ors.12, the Petitioner (Vinod Asthana) had
under Section 102 of the Criminal Procedure
filed the Petition impugning the Orders passed
Code (subject to the conditions/ circumstances
by the Joint Secretary (PSP) & Chief Passport
mentioned therein), it does not have the authority
Officer (Central Government) and the Regional
to retain, hold or impound the same for long
Passport Officer impounding the Petitioner ’s
periods. The Court categorically held that even
passport under Section 10(3)(e) of the Passports
the court does not have the power to impound
Act, 1967. The Petitioner filed an application
a passport and it can only be done by the
before the concerned Court seeking permission to
Passport Authorities. The Court further stated
travel abroad and accordingly, sought release of
that the Police must write a letter to the Passport
his passport. This application was allowed. In this
Authority along with any passports they seize
case, the Court was of the view that in the given
under Section 102 of the Criminal Procedure
facts of the case, impounding the passport was
Code which explicitly states that the passport
not merited as the petitioner had already been
should be held for any of the reasons listed in
summoned to deposit it with the relevant Court.
Section 10(3) of the Passport Act10. Then it is for
Furthermore, the petitioner has already been
the Passport Authority to make the final decision.
granted permission to travel abroad. It is worth
Since the impounding of a passport has civil
noting that the petitioner’s passport had not been
consequences, the passport authority must give an
cancelled. Given that the petitioner has previously
opportunity of hearing to the person concerned
been granted permission to travel abroad, the
before impounding of a passport.
Court believed that it is appropriate to direct
However, in the case of Jignesh Prakash Shah vs. the Respondents to set aside the impugned
Central Bureau of Investigation and Ors11 the orders impounding the petitioner ’s passport.

7. Suresh Nanda vs. C.B.I (24.01.2008 - SC): MANU/SC/7020/2008

8. Satwant Singh Sawhney vs. D. Ramarathnam and Ors. (10.04.1967 - SC): MANU/SC/0040/1967
9. Maneka Gandhi vs. Union of India (UOI) and Ors. (25.01.1978 - SC): MANU/SC/0133/1978
10. Suresh Nanda vs. C.B.I (supra); Mohammed Tasnim vs. State of Karnataka and Ors. (0–.07.2015 - KARHC) : MANU/
KA/1787/2015
11. Jignesh Prakash Shah vs. Central Bureau of Investigation and Ors: MANU/MH/1150/2018
12. Vinod Kumar Asthana vs. Joint Secretary (PSP) and Chief Passport Officer and Another, 2019 SCC OnLine Del 8138 : (2019)
262 DLT (CN 18B) 18

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 The petitioner would be free to go abroad on CONCLUSION
his present passport as long as he followed the Though there is a marginal difference in the
requirements imposed by the learned Special meaning of the terms “seize” and “impound” in
Judge. the English language, but there is a significant
The aforesaid decision was followed by this Court difference in their meaning under the law.
in Siddhartha Ashish Dey vs. Union of India & Therefore, while dealing with these two powers,
Ors. WI (C) 7339/201513, decided on 25th May it is necessary for people to know the difference
2015, in which the court had reiterated its view between them, particularly to the concerned
that "pendency of a criminal case is not ipso facto authorities as they must be cautious while dealing
a ground under Section 10(3)(e) of the Passports with impounding as misinterpretation of it may
Act for impounding of the “passport”. lead to infringement of fundamental rights i.e.,
right to travel of the person.

13. Siddhartha Ashish Dey vs. Union of India, 2015 SCC OnLine Del 969

nn

16 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

Corporate Social
Responsibility under
The Companies
Act, 2013
Kayva Prabhu Ameesha Kohli CS Archana Pareek
Student of SVKM'S Student of SVKM'S
NMIMS, Navi Mumbai NMIMS, Mumbai

Corporate Social Responsibility (CSR) is a moral financial years 2020-21, 2021-22, 2022-23
obligation for companies as they impact society. It subject to the conditions that-
has become a prevalent term in corporate circles,
signifying a commitment to social welfare, ethics, (a) such research and development
and the environment. CSR involves activities that activities shall be carried out in
benefit society, is crucial for positive societal collaboration with any of the institutes
change, builds customer trust, and is made or organizations mentioned in item (ix)
mandator y for certain corporations by the of Schedule VII to the Act;
Companies Act of 2013 in India. Overall, CSR is an (b) details of such activity shall be disclosed
integral aspect of a nation's governance, gaining separately in the Annual report on CSR
importance in recent years. included in the Board’s Report;
(ii) any activity undertaken by the company
MEANING OF CSR
outside India except for training of Indian
The Companies Act, 2013 does not define the sports personnel representing any State or
term CSR but the same has been defined by the Union territory at national level or India at
Companies (Corporate Social Responsibility Policy) international level;
Rules, 2014 (“Rules”). As per Rule 2(d) of the
Rules, the term “Corporate Social Responsibility (iii) contribution of any amount directly or
(CSR)” means the activities undertaken by a indirectly to any political party under section
Company in pursuance of its statutory obligation 182 of the Act;
laid down in section 135 of the Act in accordance (iv) activities benefitting employees of the
with the provisions contained in these rules, but company as defined in clause (k) of section
shall not include the following, namely: - 2 of the Code on Wages, 2019 (29 of 2019);
(i) activities undertaken in pursuance of normal (v) activities supported by the companies on
course of business of the company. However, sponsorship basis for deriving marketing
any company engaged in research and benefits for its products or services;
development activity of new vaccine, drugs
and medical devices in their normal course (vi) activities carried out for fulfilment of any
of business may undertake research and other statutory obligations under any law in
development activity of new vaccine, drugs force in India;
and medical devices related to COVID-19 for

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 CSR APPLICABILITY Where the amount to be spent by a company
Under Section 135 of the Companies Act 2013 under section 135(5) does not exceed Rs. 50
in India, CSR has been mandated for certain lakhs, the requirement under section 135(1) for
companies. It obligates the companies to constitution of the CSR Committee shall not be
contribute to society and address social and applicable and the functions of such Committee
environmental challenges. provided under this section shall, in such cases,
be discharged by the Board of Directors of such
Every company having company.
• net worth of Rs.500 crore or more, or The Act establishes a comprehensive framework
• turnover of Rs. 1000 crore or more or for businesses to select and implement CSR
projects that are in line with their core capabilities,
• a net profit of Rs. 5 crore or more commercial objectives, and social requirements.
during the immediately preceding financial CSR efforts should be developed and carried
year shall constitute a CSR Committee of the out with a long-term vision, sustainability, and
Board consisting of three or more Directors, measurable impact in mind. enterprises might
out of which at least one director shall be an participate in direct project implementation,
independent director. However, where a company partner with other enterprises, or donate to
is not required to appoint an independent director government-led initiatives or registered non-
under section 149(4), it shall have in its Corporate governmental organizations (NGOs). They may
Social Responsibility Committee two or more also encourage their employees to participate in
Directors. volunteer activities in order to maximize the good
consequences of CSR programs.
Furthermore, as per Rule 3(1) of the Rules, every
company including its holding or subsidiary, and CSR EXPENDITURE AND OPENING OF UNSPENT
a foreign company defined under section 2(42) of CSR ACCOUNT
the Act having its branch office or project office in
India which fulfills the criteria specified in Section The Board of every such company covered by
135(1) of the Act shall comply with the provisions Section 135, shall ensure that the company
of Section 135 of the Act and the Rules. spends, in every financial year, at least 2% of the
average net profits1 of the company made during
However, the company shall give preference to the the 3 immediately preceding financial years or
local area and areas around it where it operates, where the company has not completed the period
for spending the amount earmarked for CSR of 3 financial years since its incorporation, during
activities such immediately preceding financial years, in
pursuance of its CSR Policy.

1. As per Rule 2(h) of the Rules, “net profit” means the net profit of a company as per its financial statement prepared
in accordance with the applicable provisions of the Act, but shall not include the following, namely:-
(i) any profit arising from any overseas branch or branches of the company, whether operated as a separate company
or otherwise; and
(ii) any dividend received from other companies in India, which are covered under and complying with the provisions
of section 135 of the Act: Provided that in case of a foreign company covered under these rules, net profit means
the net profit of such company as per profit and loss account prepared in terms of clause (a) of sub-section (1) of
section 381, read with section 198 of the Act;

18 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

The “net profit” shall not include such sums as bank to be called the “Unspent Corporate Social
may be prescribed, and shall be calculated in Responsibility Account”, and such amount shall
accordance with the provisions of section 198. be spent by the company in pursuance of its
However, the net worth, turnover or net profit of obligation towards the CSR Policy within a period
a foreign company of the Act shall be computed of 3 financial years from the date of such transfer,
in accordance with balance sheet and profit failing which, the company shall transfer the same
and loss account of such company prepared in to a Fund specified in Schedule VII, within a
accordance with the provisions of section 381(1) period of 30 days from the date of completion of
(a) and section 198 of the Act. the 3rd financial year.
As per Rule 7 of the Rules, the Board shall Any surplus arising out of the CSR activities
ensure that the administrative overheads2 shall shall not form part of the business profit of
not exceed 5% of total CSR expenditure of the a company and shall be ploughed back into
company for the financial year. the same project or shall be transferred to the
Unspent CSR Account and spent in pursuance
If the company fails to spend the mandated
of CSR policy and annual action plan of the
amount, the Board shall, in its report made
company or transfer such surplus amount to a
under clause (o) of sub-section (3) of section
Fund specified in Schedule VII, within a period of
134, specify the reasons for not spending the
six months of the expiry of the financial year.
amount and, unless the unspent amount relates
to any ongoing project referred to in sub- Where a company spends an amount in excess
section (6), transfer such unspent amount to a of requirement provided under section 135(5),
Fund specified in Schedule VII, within a period such excess amount may be set off against the
of six months of the expiry of the financial requirement to spend under section 135(5) up to
year. immediate succeeding 3 financial years subject to
the conditions that -
However, if the company spends an amount in
excess of the requirements provided under this (i) the excess amount available for set off shall
sub-section, such company may set off such not include the surplus arising out of the
excess amount against the requirement to spend CSR activities, if any, in pursuance of sub-
for such number of succeeding financial years and rule (2) of Rule 7.
in such manner, as may be prescribed.
(ii) the Board of the company shall pass a
Any amount remaining unspent under section resolution to that effect.
135(5), pursuant to any ongoing project, fulfilling
The CSR amount may be spent by a company for
such conditions as may be prescribed, undertaken
creation or acquisition of a capital asset, which
by a company in persuance of its CSR Policy, shall
shall be held by -
be transferred by the company within a period of
30 days from the end of the financial year to a (a) a company established under section 8
special account to be opened by the company in of the Act, or a Registered Public Trust or
that behalf for that financial year in any scheduled Registered Society, having charitable objects

2. As per Rule 2(b) of the Rules “Administrative overheads” means the expenses incurred by the company for ‘general
management and administration’ of Corporate Social Responsibility functions in the company but shall not include the
expenses directly incurred for the designing, implementation, monitoring, and evaluation of a particular Corporate Social
Responsibility project or programme;

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 and CSR Registration Number under sub- conser vation of natural resources and
rule (2) of rule 4; or maintaining quality of soil, air and water
including contribution to the Clean Ganga
(b) beneficiaries of the said CSR project, in the
Fund set-up by the Central Government for
form of self-help groups, collectives, entities;
rejuvenation of river Ganga.
or
(v) protection of national heritage, art and
(c) a public authority
culture including restoration of buildings
However, any capital asset created by a and sites of historical importance and works
company prior to the commencement of the of art; setting up public libraries; promotion
Companies (Corporate Social Responsibility Policy) and development of traditional art and
Amendment Rules, 2021, shall within a period handicrafts;
of 180 days from such commencement comply
(vi) measures for the benefit of armed forces
with the requirement of this rule, which may be
veterans, war widows and their dependents,
extended by a further period of not more than
9[ Central Armed Police Forces (CAPF) and
ninety days with the approval of the Board based
Central Para Military Forces (CPMF) veterans,
on reasonable justification.
and their dependents including widows;

CSR ACTIVITIES COVERED BY SCHEDULE VII (vii) training to promote rural sports, nationally
Activities which may be included by companies in recognised sports, paralympic sports and
their CSR Policy as listed in Schedule VII to the olympic sports
Act are as under:— (viii) contribution to the prime minister ’s
(i) Eradicating hunger, poverty and malnutrition, national relief fund or Prime Minister ’s
“promoting health care including preventive Citizen Assistance and Relief in Emergency
health care” and sanitation including Situations Fund (PM CARES Fund)] or any
contribution to the Swach Bharat Kosh other fund set up by the central govt. for
set-up by the Central Government for socio economic development and relief and
the promotion of sanitation and making welfare of the schedule caste, tribes, other
available safe drinking water. backward classes, minorities and women;

(ii) promoting education, including special (ix) (a) Contribution to incubators or research
education and employment enhancing and development projects in the field
vocation skills especially among children, of science, technology, engineering and
women, elderly and the differently abled and medicine, funded by the Central Government
livelihood enhancement projects. or State Government or Public Sector
Undertaking or any agency of the Central
(iii) promoting gender equality, empowering Government or State Government; and (b)
women, setting up homes and hostels for Contributions to public funded Universities;
women and orphans; setting up old age Indian Institute of Technology (IITs);
homes, day care centres and such other National Laboratories and autonomous
facilities for senior citizens and measures for bodies established under Department
reducing inequalities faced by socially and of Atomic Energy (DAE); Department
economically backward groups. of Biotechnology (DBT); Department of
(iv) ensuring environmental sustainability, Science and Technology (DST); Department
ecological balance, protection of flora of Pharmaceuticals; Ministry of Ayurveda,
and fauna, animal welfare, agroforestry, Yoga and Naturopathy, Unani, Siddha

20 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

and Homoeopathy (AYUSH); Ministry of The CSR Committee shall, —

Electronics and Information Technology and
(a) formulate and recommend to the Board, a
other bodies, namely Defense Research and
CSR Policy4 which shall indicate the activities
Development Organisation (DRDO); Indian
to be undertaken by the company in areas
Council of Agricultural Research (ICAR);
or subject, specified in Schedule VII;
Indian Council of Medical Research (ICMR)
and Council of Scientific and Industrial (b) recommend the amount of expenditure to
Research (CSIR), engaged in conducting be incurred on the activities referred to in
research in science, technology, engineering clause (a); and
and medicine aimed at promoting
(c) monitor the CSR Policy of the company from
Sustainable Development Goals (SDGs).
time to time.
(x) rural development projects
The Rule 5(2) of the Rules further
(xi) slum area development. (‘slum area’ elaborates the role of the CSR Committee
shall mean any area declared as such in formulating and recommending to the
by the Central Government or any State Board on it CSR Policy as under:
Government or any other competent
(a) the list of CSR projects or programmes that
authority under any law for the time being
are approved to be undertaken in areas or
in force).
subjects specified in Schedule VII of the Act;
(xii) disaster management, including relief,
(b) the manner of execution of such projects or
rehabilitation and reconstruction activities.
programmes as specified in sub-rule (1) of
rule 4;
CSR COMMITTEE
(c) the modalities of utilisation of funds and
As stated above, every company covered by
implementation schedules for the projects
Section 135 of the Act shall constitute a CSR
or programmes;
Committee of the Board consisting of three or
more Directors, out of which at least one director (d) monitoring and reporting mechanism for the
shall be an independent director (subject to projects or programmes; and
section 149(4) of the Act). However, a private
(e) details of need and impact assessment, if
company having only two directors on its Board
any, for the projects undertaken by the
shall constitute its CSR Committee with two such
company:
directors 3. Similarly, with respect to a foreign
company covered under these rules, the CSR However, the Board has the power to alter such
Committee shall comprise of at least two persons plan at any time during the financial year, as per
of which one person shall be as specified under the recommendation of its CSR Committee, based
clause (d) of sub-section (1) of section 380 of the on the reasonable justification to that effect.
Act and another person shall be nominated by
the foreign company.

3. As per Rule 5(1)(ii) of the Rules

4. As per Rule 2(f) of the Rules, “CSR Policy” means a statement containing the approach and direction given by the board of
a company, taking into account the recommendations of its CSR Committee, and includes guiding principles for selection,
implementation and monitoring of activities as well as formulation of the annual action plan;

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 BOARD’S RESPONSIBILITIES Act, 1961 (43 of 1961), established by the
The Board of ever y company referred to in company, either singly or along with any
Section 135(1) shall,— other company; or

(a) after taking into account the (b) a company established under section 8
recommendations made by the CSR of the Act or a registered trust or a
Committee, approve the CSR Policy for the registered society, established by the Central
company and disclose contents of such Government or State Government; or
Policy in its report and also place it on the (c) any entity established under an Act of
company's website, if any, in such manner as Parliament or a State legislature; or
may be prescribed; and
(d) a company established under section 8 of
(b) ensure that the activities as are included in the Act, or a registered public trust or a
CSR Policy of the company are undertaken registered society, exempted under sub-
by the company. clauses (iv), (v), (vi) or (via) of clause (23C) of
section 10 or registered under section 12A
BOARDS REPORT and approved under 80 G of the Income Tax
The Board’s report under section 134(3) shall Act, 1961, and having an established track
disclose the composition of the CSR Committee. record of at least three years in undertaking
similar activities.
As per Section 134(3)(o) of the Act, the Board
Report shall include the details about the policy Ever y entity, covered above, who intends to
developed and implemented by the company on undertake any CSR activity, shall register itself
corporate social responsibility initiatives taken with the Central Government by filing the form
during the year CSR-1 electronically with the Registrar, with effect
from the 1st April, 2021. However, this sub-rule
Further, if the company fails to spend such shall not affect the CSR projects or programmes
amount, the Board shall, in its report made approved prior to the 1st April, 2021.
under clause (o) of sub-section (3) of section 134,
specify the reasons for not spending the amount Form CSR-1 shall be signed and submitted
and, unless the unspent amount relates to any electronically by the entity and shall be verified
ongoing project referred to in sub-section (6), digitally by a Chartered Accountant in practice
transfer such unspent amount to a Fund specified or a Company Secretary in practice or a Cost
in Schedule VII, within a period of six months of Accountant in practice. On the submission of
the expiry of the financial year. the Form CSR-1 on the portal, a unique CSR
Registration Number shall be generated by the
CSR IMPLEMENTATION AND FORM CSR-1 system automatically.

As per Rule 4 of the Rules, the Board shall ensure A company may engage international
that the CSR activities are undertaken by the organisations for designing, monitoring and
company itself or through, – evaluation of the CSR projects or programmes as
per its CSR policy as well as for capacity building
(a) a company established under section 8 of
of their own personnel for CSR.
the Act, or a registered public trust or a
registered society, exempted under sub- A company may also collaborate with other
clauses (iv), (v), (vi) or (via) of clause (23C) of companies for undertaking projects or
section 10 or registered under section 12A programmes or CSR activities in such a manner
and approved under 80G of the Income Tax that the CSR committees of respective companies

22 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

are in a position to report separately on such rural sports. When businesses participate in CSR
projects or programmes in accordance with these programmes, they require inward supplies of
rules. products or services that may be liable to GST.
The question is whether corporations can claim
The Board of a company shall satisfy itself that
ITC for GST paid on these CSR expenses under
the funds so disbursed have been utilised for
GST laws.
the purposes and in the manner as approved by
it and the Chief Financial Officer or the person To respond, it is critical to recognise that ITC is
responsible for financial management shall certify only payable for expenses made in the conduct or
to the effect. furtherance of business. For example, if an FMCG
company like HUL develops a school or hospital
In case of ongoing project, the Board of a
as part of CSR, it’s unclear whether these costs
Company shall monitor the implementation
are directly related to the company's business
of the project with reference to the approved
activities. Furthermore, unless they fall under
timelines and yearwise allocation and shall be
particular areas, CSR expenses are not deductible
competent to make modifications, if any, for
under the Income Tax Act.
smooth implementation of the project within the
overall permissible time period. According to Section 135 of the Companies
Act (2013), CSR expenses are not considered
CONSEQUENCES FOR NON-COMPLIANCE OF business expenses under the Income Tax Act
SECTION 135(5) & (6) (1961). If these expenses were tax deductible,
If a company is in default in complying with the the government would essentially subsidise a
provisions of section 135(5) or (6), the company major percentage of these costs through tax
shall be liable to a penalty of twice the amount expenditure. As a result, the government may
required to be transferred by the company to the refuse ITC on such CSR expenses under the GST
Fund specified in Schedule VII or the Unspent Act, claiming that they are not in the conduct or
Corporate Social Responsibility Account, as the furtherance of business. This issue raises concerns
case may be, or Rs.1 crore, whichever is less, regarding the GST regime's eligibility for GST on
and ever y officer of the company who is in CSR expenses.
default shall be liable to a penalty of 1/10th of The conditions for claiming Input Tax Credit (ITC)
the amount required to be transferred by the are outlined in Section 16(1) of the Central Goods
company to such Fund specified in Schedule VII, and Services Tax Act (CGST Act, 2017). It enables
or the Unspent Corporate Social Responsibility registered persons to claim a tax credit for taxes
Account, as the case may be, or Rs. 2 lakhs, paid on goods or services used for business
whichever is less. purposes. While the Act defines "business," it
The Central Government has the power to give does not explain what constitutes "in the course
such general or special directions to a company or furtherance of business." The definition of
or class of companies as it considers necessary "furtherance" in the dictionary refers to efforts
to ensure compliance of provisions of this section that promote or advance a business, assuring its
and such company or class of companies shall continuance and stability.
comply with such directions. Corporate Social Responsibility (CSR) expenses, as
required by Section 135 of the Companies Act, are
CSR VIS-À-VIS GST ACT critical for legal compliance and the upkeep of a
Companies can invest in CSR by making company's reputation. These costs are essential
contributions or by building hospitals, schools, for corporate operations and are indirectly related
and roads, or by encouraging education and to business promotion. However, eligibility for

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 ITC is also subject to other conditions outlined In Re: Bambino Pasta Food Industries Private
in Section 17(5) of the CGST Act, which limits Limited (20.10.2022) by AAR, Telangana:
credit for certain categories of expenses, including
works contract services related to immovable Question: Whether ITC is available on CSR
property construction, goods or services used for expenditure.
property construction, and goods given away as Ruling: Expenditure made for corporate
gifts or samples. ITC for CSR expenses is available responsibility under the Companies Act is
unless these expenses specifically fall under the considered an expenditure in furtherance of
categories mentioned in Section 17(5) of the CGST business, making the tax paid on purchases
Act, ensuring alignment with the law's provisions. eligible for input tax credit under CGST and SGST
As on date, there are Rulings by the Advance Acts.
Authority on whether ITC of GST paid on inputs Corporate Social Responsibility (CSR) in India,
for CSR Expenditure is available or not. The encouraged by the Companies Act of 2013, has
summar y of the questions raised before the become an integral part of business strategy.
Authorities and the Rulings passed by them are It involves companies addressing social and
as under: environmental issues alongside financial goals.
In Re: Shriram Pistons and Rings Limited Engaging in CSR can lead to a positive brand
(09.12.2022) by AAR, Uttar Pradesh: image and enhanced stakeholder trust.

Question: Whether the company can avail KEY IMPACTS OF CSR ON BUSINESSES AND
Input Tax Credit (ITC) for GST paid on services/ BRAND VALUE
expenses related to CSR activities. a. Enhanced Brand Image: Companies that
Answer: CSR activities, as per CSR Policy Rules, actively participate in CSR projects are seen
are excluded from the normal course of business as responsible corporate citizens, leading to
and are not eligible for ITC under Section 16(1) of increased trust and loyalty from customers
the CGST Act. and stakeholders. This positive image
attracts a larger client base.
In Re: Dwarikesh Sugar Industries Ltd.
(22.01.2020) by AAR, Uttar Pradesh: b. Competitive Advantage: Customers are
increasingly choosing brands aligned with
Question 1: Whether expenses incurred for CSR their values, making CSR initiatives a source
under the Companies Act qualify for ITC under of competitive advantage. Companies
Section 16 of the CGST Act. demonstrating genuine commitment
to social and environmental issues can
Answer 1: Yes, CSR expenses qualify for ITC.
experience increased sales and market share.

Question 2: Whether free supply of goods as c. Cost-Effective Publicity: CSR initiatives

part of CSR activities is restricted. garner media attention without the expenses
Answer 2: No, it is not restricted. of traditional advertising. Positive social
activities help in creating a positive brand
image and reaching a broader audience,
Question 3: Whether goods and services used
beyond the regular consumer base.
for construction of a school building, not
capitalized in books, are restricted. d. Brand Value Improvement: Active
Answer 3: ITC is not available to the extent of involvement in social and environmental
capitalization. projects strengthens a company's brand

24 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

equity. Consumers associate the brand with g. Starbucks Example: Starbucks is a

positive attributes like social responsibility prominent example of effective CSR. They
and ethical behavior, leading to customer focus on three core pillars: Community,
retention and advocacy. Ethical Sourcing, and the Environment. Their
commitment to community investment,
e. Customer Relationships: CSR fosters ethical sourcing, and sustainability has
emotional connections between customers garnered consumer support and positively
and the brand. This connection can result impacted their business.
in improved customer retention and
advocacy, with customers becoming brand In conclusion, CSR is more than just charity; it's
ambassadors through word-of-mouth a critical aspect of a company's strategy that can
referrals. improve brand value, customer trust, and long-
term viability. Meaningful CSR efforts can lead to
f. Legal Recognition: Courts and tribunals substantial positive impacts on both communities
have recognized CSR expenses as business- and businesses.
related, making them eligible for tax benefits
and credits, emphasizing the importance of nn
CSR in a company's overall strategy.

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 Fostering Innovation and Growth:
Tax Incentives for Startups in India
Priyanandan Kumar CA Vishal H. Shah
Student of SVKM’s NMIMS –
Kirit P. Mehta School of Law

ABSTRACT 1. TAX INCENTIVES FOR START-UPS IN

INDIA
This study explores the complex system of tax
incentives for new businesses in India with an
1.1. The "Startup India" Initiative
emphasis on how they promote innovation and
economic growth. Despite India's developing The Government of India's flagship
startup ecosystem, obstacles like funding access programme, Startup India, aims to promote
and regulatory complexity still exist. This paper startup culture and create a robust,
examines the variety of tax incentives put in inclusive ecosystem for innovation and
place by the Indian government to support start- entrepreneurship in India. Since its launch
ups, assesses how they affect the environment on Januar y 16, 2016, Startup India has
for entrepreneurship, and offers thorough released a number of initiatives with
recommendations for policy improvements. the goal of assisting entrepreneurs and
transforming India into a nation of job
INTRODUCTION creators rather than job seekers.
India is competing to create an environment for A dedicated Startup India Team, reports
innovation and entrepreneurship on a global scale. to the Department for Industrial Policy
However, there are many obstacles to overcome and Promotion (DPIIT) and oversees
along the way, starting from the conception of the extensive range of Startup India's
an innovative idea to the establishment of a programmes, which are described in the
successful business, such as obtaining sufficient Action Plan below. The 19-Point Action
funding, navigating complex regulatory issues, Plan includes the following types of startup
and competing in fast-moving markets. The support, among others:
Indian government has introduced a variety of
tax incentives for start-ups in order to address o Improved infrastructure with the
these issues and promote innovation. In-depth addition of incubation centres.
analysis of these tax benefits will be provided in o Simplified Intellectual Property Rights
this paper, along with a critical assessment of how (IPR) support, including streamlined
well they support innovation and expansion within patent filing processes.
the Indian start-up ecosystem.

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o A more favourable regulator y • The startup holds a certificate

environment, encompassing tax of eligible business from the Inter-
incentives, simplified compliance Ministerial Board of Certification as
procedures, enhanced company notified.
establishment procedures, expedited
• Startups must be formed as a private
exit mechanisms, and more.
limited company or as a limited liability
o An economic boost through INR partnership (LLP).
10,000 crore Fund of Funds managed
by SIDBI, aimed at expanding funding 1.1.2. Long-term Capital Gains Tax Exemption
opportunities.
Investors who have held shares in eligible
o The Startup India Portal, a start-ups for a minimum of two years can
comprehensive website providing avail capital gains tax exemption upon
valuable resources and an extensive selling those shares. This incentivizes angel
networking database for entrepreneurs and venture capital investments in the start-
and other stakeholders in the startup up ecosystem, facilitating the influx of crucial
ecosystem. capital.
o A toll-free helpline and efficient email The Income Tax Act has introduced a new
support for swift resolution of startup- section 54 EE, that allows eligible start-ups
related queries. to claim an exemption from paying tax on
Within this initiative, several key tax long-term capital gains if they invest all or
incentives were introduced: a portion of those gains in a fund that has
been approved by the Central Government
within six months of the asset's transfer
1.1.1. Tax Holiday Provisions
date.
Under Section 80-IAC of the Income Tax
The maximum amount that can be invested
Act 1 , eligible start-ups are entitled to a
in the specified fund in a financial year
tax holiday for any three consecutive
is Rs. 50 lakh. The investment in the
assessment years out of their first ten years
specified funds will be subject to a lock-
since incorporation. This exemption has
in of 3 (three) years and the exemption
significantly empowered nascent start-ups,
claimed will be revoked in the year when
allowing them to reinvest their profits into
the fund is transferred within three years of
expanding their businesses and driving
its acquisition.
innovation.
1.1.3. Exemption of capital gains form transfer of
Eligible Start-up who can apply for income
residential property if net sale consideration
tax exemptions under section 80 IAC are-
is invested in shares of an eligible company
• The startup must be formed after April (including a start-up).
1st, 2016 but before April 1st 2024.
The government has also introduced a
• The startup’s total turnover must be section 54GB wherein the capital gains
less than INR 100 crore in the year for arising from the transfer of a residential
which the exemption is be claimed. property can be claimed as an exemption

1. Income Tax Act, 1961, S. 80 IAC.

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 if the net sale proceeds are invested in the registrations. In the fiscal year 2020-21, India
shares of an eligible company, who utilised witnessed a historic high in the number
this amount for purchase of a new asset, of start-ups officially recognized by the
subject to the conditions specified in the Department for Promotion of Industry and
said section. This exemption will also help Internal Trade (DPIIT). The tax incentives,
start-up to secure funding at the initial especially the tax holiday, have galvanized
stage. budding entrepreneurs to formalize their
ventures.
1.1.4. Relaxation of provisions related to carry India's startup ecosystem has experienced
forward losses remarkable growth in recent years. The
The provisions of section 79 of the Income count of officially recognized startups in
Tax Act, restrict the carry forward of losses the nation surged from 471 in 2016 to an
in case of an unlisted company, where the astonishing 72,993 in 2022, marking an
shareholding of atleast 51% is not the same incredible growth rate of over 15,400% 2.
shareholding as in the year when the loss India now ranks as the world's third-largest
was incurred. However, this condition has startup ecosystem, and it's projected to
been relaxed in case of an eligible start-up. sustain an annual growth rate of 12-15%.
In 2018, India was home to approximately
1.2. Angel Tax Reforms 50,000 startups, out of which approximately
8,900 to 9,300 were technology-driven. The
The infamous 'angel tax,' which had long
year 2019 alone witnessed the birth of 1,300
been a vexation for start-ups, underwent
new technology startups, signifying the
substantial reforms in 2023. An amendment
emergence of 2-3 tech startups every day3.
to Section 56(2)(vii)(b) of the Income Tax
Act ushered in exemptions for eligible start- India has solidified its position as the third-
ups, shielding them from the scrutinizing largest global startup hub, following the
lens of tax authorities, provided they satisfy United States and China. A record-breaking
certain criteria. Accordingly, eligible start- 44 Indian startups achieved unicorn status
ups (fulfilling the required conditions) can in 2021, bringing the total count of Indian
issue shares at a higher rate than the value startup unicorns to 83, with a predominant
noted in the books, without attracting the presence in the services sector, according to
provisions of section 56(2)(vii)(b). the survey4.
The number of startups in this sector
2. IMPACT ASSESSMENT
increased from 11 in 2019 to 47 in 2021,
as per the sur vey's findings. In recent
2.1. Galvanizing Star t-up Registrations &
times, Delhi has overtaken Bengaluru as the
Growth
primary startup hub in India. Between April
The Startup India initiative has sparked 2019 and December 2021, Delhi saw the
an unprecedented surge in start-up addition of over 5,000 officially recognized

2. https://www.fortuneindia.com/macro/india-sees-15400-growth-in-startups-in-6-yrs/109064.
3. https://www.startupindia.gov.in/content/sih/en/international/go-to-market-guide/indian-startup-ecosystem.html.
4. Ibid

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startups, while Bengaluru added 4,514. 2.3.3. Sectoral Disparities

Maharashtra leads the pack with the highest
number of officially recognized startups, While the tax incentives have been a
totalling 11,308, according to the survey's boon for technology-focused start-ups,
data5. other sectors such as manufacturing and
agriculture yearn for similar support.
Expanding the ambit of these incentives to
2.2. Amplifying Investment Inflows
encompass a wider range of industries is
The exemption from capital gains tax for indispensable for holistic economic growth.
investors has served as a magnet, drawing
more investments into the Indian start-up 2.4 DRIVERS OF STARTUP ECOSYSTEM7
ecosystem. This substantial influx of capital
has empowered start-ups to embark on 2.4.1 Corporate Connect
ambitious expansions, invest robustly in
Businesses are partnering with and investing
research and development, and acquire
in startups as they become more aware
top-tier talent. In April-November 2021, Rs
of their disruptive potential. Instances of
89,066 crore was raised through 75 IPO
corporate assistance:
issues, much higher than in any year in the
last decade6. o The top 5 selected startups received
cash grants from Facebook and Startup
2.3. Challenges and Criticisms India totalling $50,000 each.

Notwithstanding the manifold benefits of o The Goldman Sachs 10000 Women

these tax incentives, several criticisms and programme offers women business
challenges persist: owners from around the world access
to capital, mentoring, and business and
2.3.1. Elusive Eligibility Criteria management education.
o 16 startups have recently been
The criteria for categorizing start-ups as
accepted into India's Microsoft Ventures
eligible and the conditions to avail tax
Accelerator Programme.
benefits remain intricate, fostering ambiguity
and disputes. Simplifying these criteria is
imperative to democratize access to the 2.4.2 Government Support
incentives. The Indian government is becoming more
aware of the benefits of collaborating with
2.3.2. Navigational Complexities in Implementation disruptive innovators across the value chain
and utilising their innovations to enhance
The practical implementation of tax
the provision of public services.
incentives has at times been labyrinthine,
marked by protracted approval processes o In collaboration with Startup India, the
and unwarranted delays. Streamlining Department of Animal Husbandry and
these procedures is paramount to ensuring Dairy has held a major competition
expeditious access to these benefits. to award the top startups in five
categories with 10 lakh INR each.

5. Ibid
6. Ibid
7. https://www.startupindia.gov.in/content/sih/en/international/go-to-market-guide/indian-startup-ecosystem.html.

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 o Over 26 states in the nation have of sectors, including manufacturing,
startup policies. agriculture, and traditional industries. This
diversification will catalyze comprehensive
o The Small Industries Development Bank
economic growth.
of India has launched a programme
to help small and medium-sized
businesses that are already operating CONCLUSION
but need capital for expansion. In India's developing start-up ecosystem,
tax incentives have become crucial tools for
3. RECOMMENDATIONS FOR POLICY promoting innovation and growth. The "Startup
ENHANCEMENT India" initiative has encouraged entrepreneurship
formalisation, attracted sizeable investments,
To further amplify innovation and growth in
and facilitated expansive business development.
the Indian start-up ecosystem, the following
It has also been paired with reforms in angel
policy enhancements are proposed:
taxation. However, issues with implementation,
sectoral inclusivity, and eligibility standards still
3.1. Simplification of Eligibility Criteria exist. The government must make eligibility
The government should embark on a requirements easier to meet, make implementation
journey to simplify the criteria used to procedures more efficient, and increase sectoral
classify start-ups as eligible and the inclusivity in order to fully realise the potential of
requisites for availing tax benefits. This these incentives. By addressing these problems,
simplification would not only diminish India can maintain a dynamic startup ecosystem
ambiguity but also democratize access to that stimulates both economic growth and
these incentives. technological advancement.

3.2. Streamlined Implementation Processes REFERENCES

Concerted efforts should be directed [1] Department for Promotion of Industry and
towards streamlining the implementation Internal Trade (DPIIT). (2021). Annual Report
of tax incentives, thereby ameliorating 2020-21. Government of India.
administrative bottlenecks and minimizing [2] Ministry of Finance, Government of India.
unwarranted delays. This will ensure that (2021). Income Tax Act, 1961.
start-ups can harness these benefits in a
more efficient manner. [3] Press Information Bureau, Government of
India. (2019). Angel Tax Exemption to Boost
3.3. Diversification of Sectoral Support Startups.
[4] Startup India. (n.d.). About Startup India.
While technology-driven start-ups have been
Government of India.
the primary beneficiaries of these incentives,
there is an acute need to extend this
support to encompass a broader spectrum
nn

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Withdrawal of Application
Under IBC Post - Admission
Neha Londhe Priyal Savla
Student of Symbiosis Advocate
Law School, Pune

The Insolvency and Bankruptcy Code, 2016 (“The Debt Structuring (CDR) and also introduced the
Code”) seeks to maximize value of assets of Scheme for Sustainable Structuring of Stressed
the company, ensure availability of credit and Assets (S4A Scheme) in 2016. Unfortunately, they
balance the interests of the stakeholders and most were unsuccessful and subsequently withdrawn in
importantly, conclude the insolvency resolution February 2018.
process in a time bound manner. However,
This alternative of withdrawal of application and
according to the World Bank’s Ease of Doing
conciliating outside Court is provided under
Business Report of 20161, it took 4.3 years in India
section 12A of the Code and Rule 8 of Insolvency
for a creditor to get payment from an insolvent
& Bankruptcy (Application to Adjudicating
company. Nevertheless, it is pertinent to note
Authority) Rules, 20162. As per the said Rule, an
that this duration for credit recovery is confined
insolvency application submitted by a financial
to metropolitan cities only. The actual picture is
creditor, operational creditor, or corporate
much more dismal. This deduction is backed by
applicant may be retracted upon request, subject
the fact that the Reserve Bank of India permits
to approval by the Adjudicating Authority. Prior
Asset Restructuring Companies (ARCs) a maximum
to 2018, there were no provisions regarding the
of eight years for resolution after unsuccessful
withdrawal of the insolvency application after it
attempts by banks. Therefore, in context of the
had been admitted.
entire country, it would not be incorrect to say
that the average credit recovery period could In 2017, the landmark judgement of Lokhandwala
possibly be eight to ten years. Kataria Constructions Private Limited vs.
Nisus Finance and Investment Managers LLP3
Given this scenario, the prospect of out of
delivered by the Supreme Court, changed this
Court settlements between parties (debtors and
scenario. In exercise of its power under Article
creditors) appears not like an unlikely alternative
142 of the Constitution of India, the Hon’ble
but is rather a favourable or an advantageous
Supreme Court allowed the parties involved
one. Starting from 2001, the RBI attempted
to reach a compromise even after admission
out- of court settlements through Corporate
of the insolvency application. Moreover, the

1 World Bank Group, Doing Business 2016, Measuring Regulatory Quality and Efficiency, 2016.
2 The Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, Rule 8, 2016.
3 (2018) 15 SCC 589.

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31
 Hon’ble Supreme Court in Uttara Foods and However, the use of “may” in the provision
Feeds Private Limited vs. Mona Pharmachem4 indicates that the AA is not obligated to allow
elaborated that the National Company Law the withdrawal application. The AA must consider
Tribunal or National Company Law Appellate the facts of each case and exercise vigilance
Tribunal does not have inherent power to allow for the best interests of all parties involved.
withdrawal of insolvency application. In the The withdrawal application under this provision
same case, the Supreme Court recommended is permissible at any stage subsequent to its
legislative amendments to enable the aforesaid admission. The application may be withdrawn
tribunals to have jurisdiction in deciding of the before the Committee of Creditors (CoC) is
said applications. constituted and, in case the CoC is constituted,
the applicant or a Resolution Professional can
In view of this judgement, the Insolvency and
make an application to the Adjudicating Authority
Bankruptcy Board of India was proposed with the
after obtaining the approval from the CoC
inclusion of an amendment to allow withdrawal
through a 90% majority.
of an application for insolvency even after its
admission. The Insolvency and Bankruptcy Board Section 12A of the Code read with the Regulation
of India Report of 20185 indicates an emerging 30A of the Insolvency and Bankruptcy Board of
trend of the parties to the insolvency application India (Insolvency Resolution Process for Corporate
reaching a settlement after admission, and on this Personas) Regulations, 20166 allows the parties
basis, along with the intent to fulfil the object of to reach an amicable settlement and end the
the Code, the Committee decided to amend the winding up process of the same. In the annual
Code by addition of the Section 12A. It reads as, year of 2018-19, with the introduction of this
provision, there had been 88 withdrawals under
“The Adjudicating Authority may allow the
Section 12A. This figure has only increased
withdrawal of application admitted under
since, 259 in 2019-20 7 , 411 in 2020-21 8 , and
Section 7 or Section 9 or Section 10, on an
586 in 2021-22 9. The primary causes for these
application made by the applicant with the
withdrawals predominantly entail settlements
approval of ninety per cent voting share of
with the applicants or the creditors, agreements
the committee of creditors in such manner as
to settle in the future, applicants refraining from
may be prescribed”
pursuing CIRP due to high cost, corporate debtors
According to this provision of the Code, cannot be traced or have been struck off the
applications for insolvency made under Section Register.
7, Section 9, or Section 10 may be withdrawn by
The provision has gone through scrutiny from
the applicants at any time if there is approval of
the judiciary. The section 12A was challenged for
90% of the Committee of Creditors in favour of
being arbitrary, discriminatory, and violative of
withdrawal.
Article 14 of the Constitution of India10. In Swiss
In event of such unanimity, the Adjudicating Ribbons11, it was alleged that the requirement of
Authority (“AA”) may allow such an application. 90% approval of CoC was discriminatory. However,

4 (2018) 12 SCC 587.

5 Ministry of Corporate Affairs, Report of the Insolvency Law Committee, Government of India, 2018.
6 Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Personas) Regulations, 2016.
7 Insolvency and Bankruptcy Board of India, Annual Report of 2019-20.
8 Insolvency and Bankruptcy Board of India, annual Report of 2020-21.
9 Insolvency and Bankruptcy Board of India, Annual Report of 2021-22.
10 INDIA CONST.art 14.
11 (2019) 4 SCC 17.

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the Hon’ble Supreme Court in its comprehensive of a settlement between the parties, and distinct
150-page judgement decided against the from a Resolution Plan as given under Section
allegations of being discriminatory in nature 31 of the Code. This withdrawal must also be
and held it to not be violative of Article 14. The differentiated from a ‘Scheme’ authorized under
Hon’ble Court clarified that the CIRP (proceeding) Section 230 of the Companies Act, 2013.
operates as a “proceeding in rem”, requiring
consultation with the overseeing authority before Conclusion
any specific corporate debtor is permitted to
The 2018 amendment, which introduced the
resolve its claim.
provision allowing for the withdrawal of insolvency
Additionally, the Court said that the consent applications after their admission, has proven
of all financial creditors is necessary for such a to be a mutually advantageous arrangement
withdrawal as an all- encompassing settlement for all stakeholders involved, encompassing
involving all creditors is deemed preferable under both the parties concerned and the adjudicating
the circumstances. tribunals and courts. It has afforded the parties
an opportunity to amicably settle the matter
With the guidance of abundance of judicial
beyond judicial institutions, thereby alleviating the
pronouncements, the understanding and usage
courts and tribunals from handling proceedings
of this recently amended provision has evolved. In
that could have been resolved among the parties
Brilliant Alloys Private Limited vs. S. Rajagopal
themselves. Furthermore, the resolutions under the
& Ors12., it was held that Section 12A read with
Code are governed by the National Company Law
Regulation 30A is a directive and not a mandatory
Tribunal functioning as a Consent Order and has
provision, and the nature of the same depends on
higher legal risks on default (unlike RBI schemes).
the facts of the case. Further, in Amit Katyal vs.
This results in significantly higher likelihood of
Meera Ahuja13, it was clarified that the withdrawal
successful resolution under Section 12A of the
of application may also take place after the
Code as compared to the restructuring schemes
constitution of CoC. In Arun Kumar Jagatramka
of the RBI. In the light of this, it can be asserted
vs. Jindal Steel & Power Limited14 (2021), the
that by the virtue of this provision, the Code has
Hon’ble Supreme Court articulated that withdrawal
taken a noteworthy stride towards realizing its
of an insolvency application under Section 12A
objectives.
must be regarded as conciliation or in the nature

12 (2022) 2 SCC 544.

13 (2022) 8 SCC 320.
14 (2021) 7 SCC 474.

nn

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 Transfer Pricing Implications for
Specified Domestic Transactions:
A Comprehensive Analysis
Tushar Khatri CA Chirag Vajani
Student of
K.C. Law College

ABSTRACT The relevant statutory provisions as amended by

the Finance Act, 2023 relating to the Specified
The related party transactions have always been
Domestic Transactions (SDT) are reproduced
under the close scanner of the Tax Authorities
below:
and it is believed that such transactions are by
far the most convenient way of shifting profits to
lower tax jurisdictions or to domestic companies 1. Section 92BA – Meaning of Specified
enjoying tax advantage. . The detailed Transfer Domestic Transaction
Pricing provisions relating to “international For the purposes of this section and sections
transactions” were first introduced by the 92, 92C, 92D and 92E, “specified domestic
Finance Act, 2001with effect from 1.04.2002 under transaction” in case of an assessee means
Chapter X of Income Tax Act, 1961 (‘Act’). any of the following transactions, not being
an international transaction, namely: -
Prior to introduction of transfer pricing provisions
for the specified domestic transactions, provisions (i) [***]
of Section 40(A)(2) prescribed for disallowance
(ii) any transaction referred to in section
of expenditure in respect of payments to related
80A;
parties which was excessive as compared to
the fair market value. The detailed transfer (iii) any transfer of goods or services referred
pricing provisions for certain Specified domestic to in sub-section (8) of section 80-IA;
transactions were brought under Chapter X of
(iv) any business transacted between the
the Act through Finance Act 2012 with effect
assessee and other person as referred to
from 1.4.2013 including expenditure in respect of
in sub-section (10) of section 80-IA;
which payment has been made or is to be made
to persons referred to in Section 40A(2)(b) under (v) any transaction, referred to in any other
clause(i). Clause (i) was subsequently omitted by section under Chapter VI-A or section
the Finance Act, 2017 with effect from 1.4.2017. 10AA, to which provisions of sub-section
(8) or sub-section (10) of section 80-IA
This research paper delves into the intricacies of
are applicable; or
Transfer Pricing Provisions governing Specified
Domestic Transactions (SDT) in India with an, aim (va) any business transacted between the
to shed light on the challenges and ambiguities persons referred to in sub-section (6) of
surrounding these provisions elucidate four unique section 115BAB;
issues that warrant attention.

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(vi) any other transaction as may be were acquired by the undertaking or

prescribed, and where the aggregate of unit or enterprise or eligible business
such transactions entered into by the from the open market, subject to
assessee in the previous year exceeds a statutory or regulatory restrictions, if
sum of twenty crore rupees. any;
(iii) in relation to any goods or services sold,
2. Section 80A(6) - Transfer of Goods & supplied, or acquired means the arm’s
Services between Eligible Business & Any length price as defined in clause (ii) of
Other Business carried on by the assessee section 92F of such goods or services,
Notwithstanding anything to the contrary if it is a specified domestic transaction
contained in section 10A or section 10AA referred to in section 92BA.
or section 10B or section 10BA or in any
provisions of this Chapter under the heading 3. Any Business Transacted between the
“C.—Deductions in respect of certain assessee and other person as referred to
incomes”, where any goods or services held in Section 80-IA(8) & (10)
for the purposes of the undertaking or unit or
(8) Where any goods or services held for
enterprise or eligible business are transferred
the purposes of the eligible business are
to any other business carried on by the
transferred to any other business carried
assessee or where any goods or services held
on by the assessee, or where any goods
for the purposes of any other business carried
or services held for the purposes of any
on by the assessee are transferred to the
other business carried on by the assessee
undertaking or unit or enterprise or eligible
are transferred to the eligible business
business and, the consideration, if any, for
and, in either case, the consideration, if
such transfer as recorded in the accounts
any, for such transfer as recorded in the
of the undertaking or unit or enterprise or
accounts of the eligible business does
eligible business does not correspond to the
not correspond to the market value of
market value of such goods or services as
such goods or services as on the date of
on the date of the transfer, then, for the
the transfer, then, for the purposes of the
purposes of any deduction under this Chapter,
deduction under this section, the profits
the profits and gains of such undertaking or
and gains of such eligible business shall
unit or enterprise or eligible business shall
be computed as if the transfer, in either
be computed as if the transfer, in either case,
case, had been made at the market
had been made at the market value of such
value of such goods or services as on
goods or services as on that date.
that date:
Explanation. —For the purposes of this sub-
Provided that where, in the opinion of
section, the expression “market value,” —
the Assessing Officer, the computation
(i) in relation to any goods or services sold of the profits and gains of the eligible
or supplied, means the price that such business in the manner hereinbefore
goods or services would fetch if these specified presents exceptional difficulties,
were sold by the undertaking or unit the Assessing Officer may compute such
or enterprise or eligible business in the profits and gains on such reasonable
open market, subject to statutory or basis as he may deem fit.
regulatory restrictions, if any;
Explanation. —For the purposes of this
(ii) in relation to any goods or services sub-section, “market value,” in relation to
acquired, means the price that such any goods or services, means—
goods or services would cost if these

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35
 (i) the price that such goods or services the ordinary profits which might be
would ordinarily fetch in the open expected to arise in such business, the
market; or Assessing Officer shall, in computing the
profits and gains of such business for the
(ii) the arm’s length price as defined in
purposes of this section, take the amount
clause (ii) of section 92F, where the
of profits as may be reasonably deemed
transfer of such goods or services
to have been derived therefrom:
is a specified domestic transaction
referred to in section 92BA. Provided that in case the aforesaid
arrangement involves a specified
………..
domestic transaction referred to in
(10) Where it appears to the Assessing Officer section 92BA, the amount of profits from
that, owing to the close connection such transaction shall be determined
between the assessee carrying on the having regard to arm’s length price as
eligible business to which this section defined in clause (ii) of section 92F:
applies and any other person, or
Provided further that the amount, being
for any other reason, the course of
profits in excess of the amount of the
business between them is so arranged
profits determined by the Assessing
that the business transacted between
Officer, shall be deemed to be the
them produces to the assessee more
income of the person.
than the ordinary profits which might
be expected to arise in such eligible 5. Any business transacted between the person
business, the Assessing Officer shall, in referred in section 115BAE (4):
computing the profits and gains of such
(4) Where it appears to the Assessing Officer
eligible business for the purposes of the
that, owing to the close connection
deduction under this section, take the
between the assessee to which this
amount of profits as may be reasonably
section applies and any other person,
deemed to have been derived therefrom:
or for any other reason, the course of
Provided that in case the aforesaid business between them is so arranged
arrangement involves a specified that the business transacted between
domestic transaction referred to in them produces to the assessee more
section 92BA, the amount of profits from than the ordinary profits which might be
such transaction shall be determined expected to arise in such business, the
having regard to arm’s length price as Assessing Officer shall, in computing the
defined in clause (ii) of section 92F.” profits and gains of such business for the
purposes of this section, take the amount
4. Any business transacted between the of profits as may be reasonably deemed
person referred to in Section 115BAB(6) to have been derived therefrom:
(6) Where it appears to the Assessing Officer Provided that in case the aforesaid
that, owing to the close connection arrangement involves a specified
between the person to which this domestic transaction referred to in
section applies and any other person, section 92BA, the amount of profits from
or for any other reason, the course of such transaction shall be determined
business between them is so arranged having regard to arm's length price as
that the business transacted between defined in clause (ii) of section 92F:
them produces to the person more than

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Let us break down these provisions in simpler chart form –

Provision Understanding
Section 92BA Defines the scope of Specified Domestic Transactions (SDT) which shall be
subject to the Transfer Pricing (TP) rules when their aggregate value exceeds
INR 20 Crores in a Fiscal year.
Section 80A (6) When goods & services are transferred between different units or businesses
Defines the scope of of the assessee and the consideration for such transfer as recorded in the
Specified Domestic accounts of the undertaking or unit or enterprise or eligible business does
Transactions (SDT) not correspond to the market value of such goods or services as on the date
which shall be of the transfer, the profits and gains of such undertaking or unit or enterprise
subject to the or eligible business for the purpose of deduction shall be computed as if the
Transfer Pricing (TP) transfer, in either case, had been made at the market value of such goods
rules when their or services as on that date. The provisions of Domestic Transfer Pricing are
aggregate value extended for determination of market value and the amount eligible for
exceeds INR 20 deduction.
Crores in a Fiscal
year.
Section 80-IA (8) Where goods and services move between an eligible business and another
business of the same assessee, Domestic Transfer provisions are extended to
examine whether the consideration matches the market value of such goods
or services and to the amount of deductions under Section 80-IA of the IT Act
shall be determined accordingly.
Section 80-IA (10) When due to close connection, the course of business between the eligible
business and another person it is likely to results in more than ordinary profits
for the assessee, TP rules can be invoked and the powers are given to the AO
to reasonably determine the profits by application of the provisions.
Section 115BAB (6) Like Section 80-IA (10), if the course of business is between a person eligible
under Section 115BAB and another person leads to excess profits due to close
connection, TP rule apply. The Assessing Officer can determine reasonable
profits, and the excess profit so determined is treated as taxable income.
Section 115BAE (4) Where it appears to the Assessing Officer that, owing to the close connection
between the assessee to which this section applies and any other person, or
for any other reason, the course of business between them is so arranged
that the business transacted between them produces to the assessee more
than the ordinary profits which might be expected to arise in such business
and the arrangement involves a specified domestic transaction referred to in
section 92BA, the amount of profits from such transaction shall be determined
having regard to arm's length price as defined in clause (ii) of section 92F. The
amount, being profits in excess of the amount of the profits determined by the
Assessing Officer, shall be deemed to be the income of the assessee and the
income-tax payable in respect of the income, in such case shall be computed
at the rate of thirty per cent.

Once transfer pricing provisions are applicable reporting transactions in Form3CEB, benchmarking of
SDT, maintaining detailed documentation, etc. are required to be adhered to avoid penalty for non-
compliance. to avoid penalty for non-compliance.

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37
 clause (ii) of section 92F. The amount, being profits in excess of
the amount of the profits determined by the Assessing Officer,
shall be deemed to be the income of the assessee and the income-
tax payable in respect of the income, in such case shall be
computed at the rate of thirty per cent.

Once
Penalties fortransfer pricing provisions are applicable reporting transactions in Form3CEB,
non-compliance:
benchmarking of SDT, maintaining detailed documentation, etc. are required to be adhered to
Sectionavoid penalty for non-compliance.
Nature of Failure Amount of Penalty
Failure to report any transaction
Penaltiesinfor
report. i.e., in Form 3CEB.
non-compliance: 2 percent of the value
Failure to maintain documentation as specified under section
271AA of specified domestic
92D.
transaction.
Furnishes incorrect information or documentation.
271BA Failure to furnish report under section 92E. i.e.,Form 3CEB Rs. 1,00,000.
271G Failure to furnish documentation to AO. 2 percent of the value
of specified domestic
transaction.
Note:
Note: The The penalties
above above penalties
are inare in addition
addition to penalty
to penalty leviable
leviable under
under section270A
section 270Afor
forunder
under reporting
reporting
of income. of income.
A flow chart of determining the domestic transfer pricing is provided below for ease of
A flow chart of determining the domestic transfer pricing is provided below for ease of understanding:
understanding:

Following are four unique issues related to Transfer Pricing Provisions for Specified Domestic
Following are four
Transactions (SDT)unique
in India,issues related
along with Relevant
explanations Provisions:
and relevant Thisattached
provisions issue relates
to it – to Section
to Transfer Pricing Provisions for Specified 92BA of the Income Tax Act, which defines SDT
Domestic Transactions (SDT) in India, along with and brings them under the purview of TP rules
explanations and relevant provisions attached to when their aggregate value exceeds INR 20 crores.
it – The inconsistency may arise in how these rules are
applied by different tax authorities.
Issue 1: Inconsistent Application of TP Rules
for SDT Issue 2: Lack of Clear Guidance on Market
Explanation: Tax authorities sometimes apply Value
Transfer Pricing rules inconsistently for Specified Explanation: Determining the market value of
Domestic Transactions (SDT). This inconsistency goods or services in SDT can be challenging,
can lead to disputes and confusion for businesses. especially when there are no clear guidelines and

38 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

limited judicial. This lack of clarity can result in what constitutes "excess profits" under Section
disputes between taxpayers and tax authorities. 80-IA(10) and Section 115BAB(6) are not explicitly
defined in the Act. This ambiguity can lead to
Relevant Provisions: Section 80A(6) and Section
disputes and uncertainty.
80-IA (8) of the Income Tax Act require that the
consideration for SDT should correspond to the Relevant Provisions: Section 80-IA(10) and
market value. However, the Act does not provide Section 115BAB (6) deal with situations where the
a detailed methodology for calculating market course of business between connected entities
value and hence will have to resort to the concept results in more than ordinary profits. However,
of arm’s length price to justify the value of the the Act does not provide clear guidance on what
transaction. defines a "close connection" or how to calculate
"excess profits."
Issue 3: Subjectivity in Assessing Exceptional These unique issues highlight the need for clearer
Difficulties guidelines, consistent application of TP rules, and
Explanation: Section 80-IA(8) allows Assessing more explicit definitions in the Income Tax Act to
Officers to use a reasonable basis to compute address challenges and ambiguities in the context
profits and gains when exceptional difficulties of Specified Domestic Transactions.
are present. The subjectivity in determining what
Summarily, the research on Transfer Pricing
constitutes "exceptional difficulties" can lead to
Provisions for Specified Domestic Transactions
inconsistent assessments.
(SDT) in India highlights four significant issues,
Relevant Provisions: Section 80-IA(8) states that including inconsistent rule application, market
Assessing Officers can use a reasonable basis value ambiguity, subjective assessments, and
if they believe that the usual method presents uncertain criteria regarding close connections
exceptional difficulties. However, the Act doesn't and excess profits. Resolving these concerns is
define or provide clear criteria for what qualifies essential for fostering transparency, reducing
as "exceptional difficulties." disputes, enhancing compliance, and promoting
fairness in taxation. Achieving clarity and
Issue 4: Ambiguity in Close Connection and consistency in SDT Transfer Pricing is an ongoing
Excess Profits effort that requires attention, collaboration, and
Explanation: The criteria for identifying a "close adaptability in India's evolving tax landscape.
connection" between businesses and determining
nn

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39
 Direct Tax Amendments
under the Finance
Act, 2023
Sailee Kambli Summaiya Shaikh CA Ankit Sanghavi
Student of M.L.
1
Student of Smt. M. M.
1

Dahanukar College of K. College of Commerce

Commerce & Economics

Introduction Slab Tax rates

The Union Budget 2023 was presented by the Upto Rs. 3,00,000 Nil
Hon’ble Finance Minister Smt. Nirmala Sitharaman 3,00,001- 6,00,000 5%
in the Parliament on 1st February, 2023.
6,00,001-9,00,000 10%
The Finance Bill, 2023 was subsequently passed by 9,00,001-12,00,000 15%
both the houses of Parliament and it received the 12,00,001-15,00,000 20%
President’s assent on 31st March, 2023. More than 15,00,000 30%
The key amendments introduced by the Finance c. Reduced surcharge for high-net-worth
Bill, 2023 are summarized hereunder: individuals (HNIs) under new tax regime.

1. Changes relating to New Tax Regime. • Under the New Tax Regime, the highest
surcharge of 37% will be lowered to
a. New Tax regime to be the default tax
25% for those earning more than Rs. 5
regime starting from the 1st April 2023.
crores.
• The Centre has made the New Tax
d. Standard deduction benefit extended to
Regime as the default tax regime from
the New Tax Regime.
FY 2023-24.
• The standard deduction of Rs. 50,000
• However, taxpayer has the option to be
on salar y income was earlier not
governed by the earlier regime.
allowed in the New Tax Regime until
b. Basic exemption limit hiked in New Tax FY 2022-23 (AY 2023-24).
Regime.
• However, from FY 2023-24 (AY 2024-25)
• The major change proposed in Budget this benefit of a standard deduction will
2023 is change in slab rates under New now be allowed for salaried employees
regime. and pensioners opting under the New
Tax Regime as well.

40 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

e. Tax rebate limit raised from Rs. 5 lakhs to • TDS rates are reduced from 30% to
Rs. 7 lakhs under new tax regime. 20% w.e.f. 1st April, 2023 on the taxable
portion of EPF withdrawal in non-PAN
• The government has increased the tax
cases.
rebate limit u/s 87A from Rs. 5 lakhs to
Rs. 7 lakhs under the New Tax Regime.
3. Changes relating to Business and
• In short, any person whose income Profession
under the New Tax Regime is less than
a. Deduction u/s 43B on Timely payment to
or equal to Rs. 7 lakhs, need not invest
MSMEs.
anything to claim any sort of exemption
as the entire income would be tax- • Section 43B of the Income Tax Act of
free irrespective of the quantum of 1961 is amended in Clause 13 of the
investment made in such cases. Finance Bill 2023 to encourage prompt
payments to MSMEs.
2. Changes relating to salaried employees • As per the amendment, where
a. LTA encashment limit raised from Rs.3 payments made to 'micro' or 'small'
lakhs to Rs.25 lakhs for Government vendor registered under MSME Act, is
Employees. not made within period specified u/s
15 of MSMED Act, 2006 (maximum
• The leave encashment for government
period that is allowed for payment to
employees is exempt up to a certain
be made is 45 days from the date of
limit.
delivery of goods or receipt of services),
• This LTA encashment limit was Rs. 3 the expense from MSME shall not be
lakh for two decades (since 2002). allowed under Income tax laws.
• It has now increased to Rs. 25 lakhs b. Presumptive Tax Scheme Limits Increased
w.e.f. FY 2023-24. us/ 44AD & 44ADA.
b. LTA encashment limit raised from Rs.3 • The government has hiked the
lakhs to Rs.25 lakhs for Non-Government threshold limits for presumptive taxation
Employees. schemes for eligible businesses under
section 44AD (MSMEs/Small Businesses)
• The leave encashment for non-
and section 44ADA (Professionals).
government employees is exempt up
to a certain limit. • The turnover u/s 44AD has increased
from Rs. 2 crores to Rs. 3 crores and
• This LTA encashment limit was Rs. 3
for professionals’ u/s 44ADA from
lakh for two decades (since 2002).
Rs. 50 lakhs to Rs. 75 lakhs.
• It has now increased to Rs. 25 lakhs
• The enhanced new limits will take effect
w.e.f. FY 2023-24.
if total cash receipts for the year do not
c. Reduced TDS on EPF withdrawal. exceed 5% of total gross receipts or
turnover.
• Employees Provident Fund (EPF) is a
retirement fund for salaried employees. c. Ease in claiming deduction on
amortization of preliminary expenses.
• Every month, 12% of the employee's
basic salary is contributed to the EPF • Section 35D of the Act provides for
account. amortization of certain preliminar y

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41
 expenses which are incurred prior to • Under existing regime, if it was
the commencement of business or after redeemed after 2 years of holding, it
commencement, in connection with was classified as Long Term and 20%
extension of undertaking or setting up tax was levied on capital gains after
of a new unit. indexation.
• This includes expenditure in connection • This brings the taxation treatment for
with preparation of feasibility report, debt funds on a par with any other
project report etc., which would need bank fixed deposits, where the capital
to be carried out either by the assessee gains are added to the investor ’s
himself or by a concern which is income and taxed at slab rates.
approved by the Board.
b. Conversion of Physical Gold to Electronic
• Therefore, section 35D is amended Gold Receipt to become Tax Free.
to ease the process of claiming
• The government has excluded the
amortization of these preliminar y
conversion of physical form of gold
expenses.
into EGR and vice versa by a SEBI
• As per the amendment, the condition registered Vault Manager from the
of activity in connection with these purview of ‘transfer’ for the purposes
expenses to be carried out by a of Capital gains i.e., no capital gains tax
concern approved by the Board is implication if physical gold is converted
removed. Instead, the assessee shall to Electronic Gold Receipt (EGR) or the
be required to furnish a statement vice-versa.
containing the particulars of this
• The amendment seems to be aimed at
expenditure within prescribed period to
encouraging the purchase of electronic
the prescribed income-tax authority in
gold.
the prescribed form and manner.
c. Section 50AA in case of market linked
4. Changes relating to Capital Gains debentures or unit of specified mutual
fund.
a. No more LTCG Tax benefit on Debt
Mutual Funds • New section 50AA in the Income-tax
Act with effect from April 1, 2023.
• Regardless of the holding period
investments in mutual funds on or • It provides for a special provision for
after 01/04/2023 where not more than the computation of capital gains in the
35% is invested in equity shares of a case of Market Linked Debenture.
domestic companies (i.e., debt funds,
international funds and gold funds) • As per the section, the full value of the
will now be deemed to be short term consideration received or accruing from
capital gains i.e., it will be liable to the transfer, redemption, or maturity
be taxed as per slab rate with no of a Market Linked Debenture will be
indexation benefits. deemed to be the capital gains arising
from the transfer of a short-term capital
• If the investor falls under the highest asset.
income tax bracket of 30%, they will
have to pay 35.8% (including surcharge • This is subject to the reduction of the
and cess) on their gains without any cost of acquisition of the debenture and
indexation benefit. the expenditure incurred in connection

42 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

with such transfer or redemption or e. Prevention of double deduction claimed

maturity. on interest on borrowed capital for
acquiring, renewing or reconstructing a
d. Amendments under Section 54 and
property.
Section 54F.
• The government has obser ved that
• Background:
some assessees have been claiming
- Section 54 relates to deduction double deduction of interest paid on
when assessee being individual or borrowed capital for acquiring, renewing
HUF, transfers a residential house or reconstructing a property.
property (LTCA) and invests the
• Firstly, it is claimed in the form of
capital gains in a new residential
deduction from income from house
house the amount of gain or
property under section 24, and in
amount invested, whichever is
some cases the deduction is also being
lower, shall be exempted.
claimed under other provisions of
- Section 54F relates to deduction Chapter VIA of the Act.
when assessee being individual
• Secondly, while computing capital gains
or HUF, transfers a capital asset
on transfer of such property this same
other than residential house
interest also forms a part of cost of
property (LTCA) and invests the
acquisition or cost of improvement
net sales consideration in a new
under section 48 of the Act.
residential house, the amount
of gain shall be exempted if the • In order to prevent this double
whole consideration is invested, deduction, the cost of acquisition or the
however, if the full consideration cost of improvement shall not include
is not invested, the proportionate the amount of interest claimed under
gains shall be exempt. section 24 or Chapter VIA.
• Position after Amendment:
5. Changes relating to Other Sources
- Section 54 the maximum deduction
a. Tax on Online Gaming
that can be claimed is now
restricted to 10 cr. If the cost of • A new section, 115BBJ, is introduced to
new asset purchased is more than tax the winnings from online games.
10cr. cost will be deemed to be 10
• All forms of winnings, such as cash,
cr.
kind, vouchers, or any other benefit,
- Section 54F The maximum amount from online gaming, will attract tax at
of deduction is now10 cr. So, a flat 30%, which will be deducted for
the investment over that will be every rupee earned, net of entry fees (if
ignored. A proviso is inserted to any).
provide that the amount of net
b. Maturity proceeds of life insurance
consideration in excess of Rs. 10
policies (except ULIPs)with annual
cr. will not be taken into account
premium of over Rs 5 lakh to be taxed.
for the purposes of computing
exemption under this section. • With effect from 1st April, 2023, if
aggregate of premium for life insurance

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43
 policies issued on or after 1st April, by a public sector company in another
2023 is above Rs. 5 Lakhs, proceeds public sector company resulting in a
from such policies over the annual reduction of its shareholding below 51%
premium of Rs. 5 lakhs would be and transfer of control to the buyer.
taxable (i.e., Up to Rs. 5 lakhs shall be
b. Amendment under section 72AA
exempt) at the applicable rates.
• It is amended to allow the carr y
6. Changes in Set off and carry forward of for ward of accumulated losses and
losses. unabsorbed depreciation in the case
of the amalgamation of a banking
a. Amendment under section 72A
company with another banking
• The definition of 'strategic company within five years of the
disinvestment' in Section 72A has been strategic disinvestment.
modified to include the sale of shares
by the Central or State Governments, or nn

44 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

6th The Dastur National Moot Court Competition, 2023

— Nishtha Gada
Student of Government Law College, Mumbai

The Chamber of Tax Consultants in

association with Government Law College,
Mumbai held the Valedictory Function
of 6th The Dastur National Moot Court
Competition, 2023. It was held in a hybrid
mode on the 27th of May and 10th of
June, 2023.
The Moot Proposition of the competition
was drafted by experts in the field and
dealt primarily with the issues relating to
technology driven transactions as well as
concepts of residential status, assessment
jurisdiction, and capital receipts while also
highlighting the emerging legal landscape.
The Moot Court Competition was Hon’ble ITAT Members with Team CTC
conducted over two days where the 16
participating teams went through two
Preliminary Rounds of Arguments, Quarter-Final Rounds of Arguments, the Semi-Final Rounds of
Arguments and ultimately, the Final Round of Arguments. Eminent Indian lawyers and Judges of the
highest standing, academicians and experts in the field of Tax laws converged to adjudicate the various
rounds of the Competition.
The Quarter Final Rounds were judged by CA Ketan Vajani, Mr. Prakash Sinha, Advocate, CA Paras S.
Savla, CA Shailesh Bandi, CA N. C. Hegde, Mr. Anil Harish, Advocate, Prof. Kishu Daswani and Mr. Paras
K Savla, Advocate.
The Semi Final Rounds were judged in the
ITAT Court Rooms by the sitting members
of the Hon’ble Income Tax Appellate
Tribunal – Hon’ble Mr. Aby T. Varkey,
Judicial Member, Hon’ble Mr. Amarjit Singh,
Accountant Member, Hon’ble Mrs. Kavitha
Rajagopal, Judicial Member and Hon’ble
Mrs. Padmavathy S., Accountant Member.
The two teams in the final round; Institute
of Law, Nirma University and Government
Law College, Mumbai were judged by
Hon’ble Sitting Judges of the Bombay High
Court – Hon’ble Shri Justice Abhay Ahuja
and Hon’ble Dr. Justice Neela Gokhale. After
Final Round
a stellar round of mooting, Government Law

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45
 College, Mumbai was declared the
winner of the prestigious moot.
The Valedictor y Ceremony
was graced by the Principal of
Government Law College, Mumbai
- Dr. Asmita Vaidya, the President
of the Chamber of Tax Consultants-
Mr. Parag Ved, the Chairman of
the Student Committee- CA Vitang
Shah and several members of
The Chamber of Tax Consultants
and members of the Income Tax
Appellate Tribunal Bar along with the
judges of the Final Rounds.
Following awards were declared
during the Valedictory Ceremony: Winning Team Government Law College, Mumbai
• Best Team – Abdulkadir
Jawadwala, Himangi Raswant and Mansi Thakur from Government Law College, Mumbai
• Second Best Team – Riya Sharma, Kanika Saxena and Shruti Darak from Institute of Law, Nirma
University
• Best Memorial – Chiraag
Agarwal, Sougata Banik and
Alishan Hossain from St.
Xavier's University, Kolkata
• Best Speaker - Tresshaa Dutt
from National Law University,
Jodhpur
• Second Best Speaker -
Mohammed Raqim from
University Law College
Bangalore University
These two days of intense
mooting definitely facilitated the
students with a fun- learning and
memorable experience!
Final Round Judges: Hon’ble Mr Justice Abhay Ahuja & Hon'ble
Dr. Neela Kedar Gokhale Judges of Hon’ble Bombay High Court

46 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

Report on The Dastur Essay Competition, 2023

— Akash Shirore
Student of MNLU, Mumbai

The Committee organised 12th Dastur

Essay Competition-2023 for Students
of Law & Accountancy including Article
trainees pursuing CA Course, being its
annual feature. The competition featured
three thought-provoking topics, each of
which invited participants to delve deep
into critical aspects of Indian society and
governance. The topics included:
1) Do Indian Labour Laws require to
be reformed and, if so how?
2) After 75 years of Independence,
what should be India’s vision for CA Anish Thacker (Past President) felicitating Ms. Linda Biju
the next 75 years? John, 1st winner of The Dastur Essay Competition, 2023
3) To have smarter and Succes
oriented students, should our
school/college syllabi be changed and, if so in what manner?
The Dastur Essay
Competition,
2023, was a
remarkable event
that showcased the
intellectual prowess
and analytical
abilities of numerous
participants. This
annual competition
attracted a total of
122 registrations,
demonstrating a
keen interest in
critical issues facing
Winners of The Dastur Essay Competition, 2023 our society. Out of
these registrations,
33 essays were submitted for evaluation.
A panel of esteemed judges, comprising CA Nishtha Pandya, CA Dinesh Tejwani, CA Namrata Dedhia,
CA Atul Suraiya, CA Jigar Saiya, CA Apurva Shah, CA AS Merchant, and CA Atul Bheda, carried out the
initial evaluation of all 33 essays. Their dedication and expertise ensured a thorough assessment of the
submissions, which were undoubtedly insightful and well-researched.

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47
 The top ten essays that emerged from this initial evaluation underwent a rigorous evaluation process
by the sitting judge of Hon’ble Bombay High, Hon'ble Shri. Justice Kamal Rashmi Khata, Court. The
final assessment was undoubtedly a testament to the high standard of the competition and the quality
of submissions.
The winners of the Dastur Essay Competition, 2023, who demonstrated exceptional insight and
understanding of the chosen topics, were:
1st Prize Winner: LINDA BIJU JOHN
2nd Runner-Up: VAISHALI JITENDRA LUND
3rd Runner-Up: NEHA MARIA ANTONY
These winners were acknowledged for their
outstanding contributions with trophies,
merit certificates, and cash prizes. The
breakdown of prizes was as follows:
1st Prize: Trophy, Merit Certificate, and a
cash award of Rs. 10,000/-
2nd Runner-Up: Trophy, Merit Certificate, and
a cash award of Rs. 7,500/- From left to right: Adv. Niyati Mankad,Chairperson
3rd Runner-Up: Trophy, Merit Certificate, and (Student Committee) Hon'ble Mr. Justice Kamal R. Khata,
a cash award of Rs. 5,000/- Bombay High Court (Final Round Judge) and CA Vitang
Shah, Jt. Secretary, CTC
Additionally, the 4th to 10th place
participants received certificates and a
memorable pen as tokens of appreciation. For all other participants, issued Participation Certificates to
recognize their contribution to the competition were issued.
The Dastur Essay Competition, 2023, not only promoted critical thinking and in-depth research but also
celebrated the diverse perspectives and innovative ideas of the participants. The competition's success
was a testament to the dedication of the organizers, the diligence of the judges, and the enthusiasm
of the participants.
We look forward to witnessing more engaging and thought-provoking discussions in the future as we
continue to explore and address the pressing issues facing our society.
Congratulations to all the winners and participants for their exemplary contributions to this intellectually
stimulating event

48 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

A Report on The New Scheme of CA Education & Training

— Mahika Kandarpa
Student of MNLU, Nagpur

Introduction
The Student Committee of the Chamber of Tax Consultants organized its inaugural program on the
"New Scheme of CA Education and Training." The program aimed to provide valuable insights into
this new scheme and its implications for aspiring Chartered Accountants. Esteemed speakers, CA Priti
Paras Savla, Central Council member of ICAI, and CA Daya Nivas Sharma, Vice Chairman of the Board
of Studies at ICAI, graced the event. It attracted tax professionals, students, and representatives from
various professions.

Opening Remarks
The program was hosted by the Convenor of the Student Committee, CA Charmi A. Shah. She invited
Ms. Varsha Galvankar, Past Chairperson of the Student Committee, to commence with a brief prayer.
This was followed by opening remarks from CA Haresh Kenia, the President, who underscored the
critical role of education in shaping any profession's future and provided an overview of the Chamber
and its activities. Mrs. Niyati Mankad, Advocate and Chairperson of the Student Committee, extended
a warm welcome to the distinguished speakers and participants. She emphasized the Chamber of
Tax Consultants' significance in promoting professional development and networking among tax
professionals, encouraging attendees to become members and seize the opportunities it offers. CA
Charmi G. Shah, Vice Chairperson and CA Raj Khona then formally introduced the distinguished
speakers.

Address by CA Priti Paras Savla

CA Priti Paras Savla, one of the Chief Guests,
expressed her gratitude to Mr. Haresh Kenia ji,
President of the Chamber of Tax Consultants, and
all esteemed attendees. She explained that the
new scheme aims to provide a comprehensive
framework for chartered accountancy
education, including two years of articleship
and uninterrupted articleship. The Board of
Studies played a significant role, gathering
feedback through over 100 outreach meetings
and compiling more than 25,000 suggestions
from stakeholders, members, and students. After
extensive deliberation and discussions at the council, the scheme received approval from the Ministry
of Corporate Affairs and officially launched on July 1, 2023. CA Savla emphasized the world-class nature
of the new scheme and the ICAI's commitment to support its members and students, including through
initiatives like the SAHAYTHA helpline. The program aimed to provide clarity on the new scheme and
address any questions or concerns from students and members.

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49
 Address by CA Daya Nivas Sharma
CA Daya Nivas Sharma, the second Chief Guest,
discussed the implementation of the new scheme
of CA education and training. He began by
expressing gratitude and compliments to the
organizing team and participants of the Outreach
meetings. He also thanked the Ministr y of
Corporate Affairs for their positive response to the
Outreach program. Sharma highlighted the efforts
to redesign the curriculum, involving academicians,
and ensuring it meets international standards. The
new scheme emphasizes uninterrupted practical
training, self-paced learning, ethics, and technology integration in all subjects. He mentioned the
recognition of Business Accounting Associates and the introduction of country-specific international
curriculum. He emphasized the importance of technology in the profession's future and urged
everyone to trust and believe in the Institute's vision. Sharma summarized the significant changes
and improvements in the new scheme of CA Education and Training, designed to provide a world-
class curriculum aligned with international standards, uninterrupted practical training, and self-paced
learning. New topics like ethics, technology, and integrated business solutions prepare future chartered
accountants better. Sharma highlighted the benefits of the new syllabus, including the country-specific
international curriculum and opportunities for international industrial training. He urged everyone to
trust and believe in the Institute's vision, assuring that the changes are for the profession's betterment
and the future of aspiring chartered accountants.

Question and Answer Session

Following these insightful speeches, a productive question-and-answer session between the participants
and the esteemed Chief Guests ensued. The Chief Guests promptly shared their knowledge on the
subject, guiding the students effectively.

Closing Remarks & Vote of Thanks

The program concluded with closing remarks from Smt. Varsha Galvankar, who expressed gratitude to
the esteemed speakers and all participants for making the event a success. The session successfully
achieved its goal of providing a quick insight into the new scheme and addressing attendees' queries.
This was followed by a formal vote of thanks from Ms. Ananya Gupta, Advocate & Solicitor. The
Student Committee eagerly anticipates hosting more enriching programs in the future, contributing to
the growth and development of aspiring Chartered Accountants and tax professionals.

50 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

Insights from the 'Income Tax Returns,

AIS & TIS – Do’s & Don’ts' Webinar
— Nishtha Gada
Student of Government Law College, Mumbai

On July 19, 2023, a webinar titled 'Income Tax Returns, AIS & TIS – Do’s & Don’ts' was organized via
Zoom, shedding light on the practical aspects of filing income tax returns and providing an overview
of the Income Tax Act. The session, led by CA Avinash Rawani, a seasoned professional in the field
of Direct Tax, Audits, and Company Law, delivered valuable insights and guidance to students and
participants.

CA Rawani began by emphasizing the significance of accurately filing income tax returns, highlighting
that it serves as proof of income for various purposes, including obtaining loans and visas. He
discussed the provisions of the Income Tax Act and the consequences of not filing or filing false
returns, stressing the importance of compliance.

During the session, CA Rawani

covered a range of topics,
including:

1) The Accountability
of Third Parties: CA
Rawani explained that
third parties, such
as intermediaries or
professionals, are
responsible for ensuring
the accuracy of the
information provided on
income tax returns. Any
incorrect information by a
third party can lead to accountability.

2) Income Taxpayers Charter: He mentioned the Income Tax Taxpayers Charter, outlining the duties
of both taxpayers and the income tax department. Taxpayers should receive courteous and
professional assistance from the department and be treated as honest.

3) Privacy and Confidentiality: The importance of maintaining the privacy and confidentiality of
taxpayer information was underscored.

4) E-verification: CA Rawani discussed the significance of e-verification in the filing process and its
advantages.

5) ITR Forms: He explained the different ITR forms and their applicability, ensuring participants
understood the appropriate form for their specific income sources.

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 6) AIS (Annual Information Statement): CA Rawani detailed the AIS, including its contents and
relevance in filing income tax returns. He explained the use of data analytics and artificial
intelligence for processing this information and highlighted the government's efforts to improve
communication through online feedback and mobile applications.

7) Changes in the Filing Process: CA Rawani updated participants on changes in the filing process,
AIS, and TIS (Transaction Information Statement).

8) Reporting Non-Income Items: He addressed specific issues related to the income tax portal, such
as reporting non-income items and raising grievances.

Throughout the webinar, CA Avinash Rawani provided practical insights and valuable tips to ensure a
smooth and accurate income tax return filing process. His expertise and willingness to answer audience
questions simplified the complex world of income tax returns for all participants.

52 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

Report on Webinar on Tax Audit – Student Perspective

— Akash Shirore
Student of MNLU, Mumbai

The "Webinar on Tax Audit – Student Perspective,"

conducted on the 8th and 9th of August 2023,
was a two-day event tailored for students, newly
qualified professionals, and individuals interested
in tax auditing. This webinar aimed to provide a
comprehensive overview of tax audits, the impact
of auditing standards on tax audits, and an in-
depth examination of the relevant provisions of the
Income Tax Act, accompanied by a clause-by-clause
analysis of the Tax Audit Report. The event was
hosted on the Zoom online platform and garnered
the participation of over 100 attendees across both days.

On the first day of the webinar, keynote speaker CA Pradip Kapasi laid the foundation by
offering fundamental insights into tax audits. He stressed that the primary goal of auditing is
scrutiny, and auditors must consistently adhere to the facts when confronted with discrepancies.
CA Kapasi emphasized the role of auditors in not only assisting clients but also educating them,
stating, "A proficient professional goes beyond the minimum requirements." He discussed how 90% of
compliance obligations are straightforward and can
be comprehended and appreciated by clients when
auditors execute their duties effectively. CA Kapasi
also emphasized the necessity for CA articles to
undergo proper training in auditing practices when
involved in audit work and to learn and adhere to
Standard Auditor Practices.

Thereafter, CA Devangi Patel delved into the Tax

Audit Report. She commenced by elucidating
clauses 1 through 17 of the report, providing a
meticulous analysis of the pertinent provisions of
the Income Tax Act.

At the conclusion of Day 1, CA Priti Savla, a

member of the student committee and central
council member of ICAI, provided valuable insights
on averting disciplinary proceedings resulting from
misconduct during tax audits. She emphasized the
significance of the sessions, enhancing the overall
value of the event with her closing remarks.

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 Continuing on the second day, CA Devangi Patel covered clauses 18 through 44, offering a
comprehensive understanding of the Tax Audit Report. CA Patel underscored the significance of
adhering to Standard Auditing Practices for a successful tax audit. She introduced the golden rule that
"work not documented is work not done" and recommended the utilization of comprehensive checklists,
client questionnaires, and AI to enhance the audit process. Furthermore, she emphasized that tax audits
necessitate a profound understanding not only of tax laws but also of related laws such as accounting
standards, laws on sale of goods and transfer of property, IT Laws, GST, MSME, among others.

The sessions encompassed

a broad range of topics, from
highlighting the basics of PAN
card initials to addressing
complex matters like capital
gains taxation and adjustments
mandated for compliance with
the Income Computation and
Disclosure Standards (ICDS) under
Section 145(2) of the Income Tax
Act.

Throughout both days,

participants actively engaged with
the speakers, posing a myriad of questions. The speakers responded with insightful answers, enriching
the learning experience for all attendees.

In summary, the "Webinar on Tax Audit – Student Perspective" delivered an enlightening and
invaluable experience by presenting in-depth discussions of the relevant provisions of the Income
Tax Act and a meticulous clause-by-clause analysis of the Tax Audit Report. The key takeaways, such
as the importance of documentation and adherence to standard auditing practices, are expected to
have a lasting impact on all participants. This webinar has significantly contributed to broadening the
understanding of tax audits for both CA article students and professionals alike.

Overall, the "Webinar on Tax Audit – Student Perspective" can be deemed a resounding success.

54 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

Summary of Udaan Episode 5

Mr. Vikram Nankani, Senior Advocate
— Akash Shirore
Student of MNLU, Mumbai

In the latest episode of Udaan –

Learning Today… Leading Tomorrow,
Mr. Vikram Nankani, Senior Advocate
was invited to enlighten one and all
about his journey in law. The session
was moderated by Advocate Aditya
Ajgaonkar who reads law in Nankani
sir ’s Chamber. Mr. Vikram Nankani,
Senior Advocate is known for his vast
knowledge and experience of the law
and has a practice that straddles a
variety of diverse legal subjects. He is briefed regularly on matters in many Courts and Quasi-judicial
bodies across the Country.

Question: what inspired you to take up law? If you could just enlighten us on that.
Answer: I chose to pursue a career in law because it ran in my family, with my father and extended
relatives being lawyers. Although I briefly considered theater and even worked as a radio show host
for a while, I realized that the real drama unfolded in the courtroom. I also had a passion for teaching
and briefly lectured in economics at Jai Hind College. However, my father's influence ultimately led me
to choose a career in law.

Question: What does a typical day in your life look like, given your frequent travel between
Bombay, Delhi, and various courts across the country, where the workload is substantial?
Answer: Each day is unique, and time management is crucial. You apply what you learn in law school
to yourself every day that is you live to fight another day. Hard work is essential in a profession that
requires constant reading and preparation. There's no fixed formula for the number of hours to work,
as it varies based on an individual's personality and priorities. Planning and prioritizing tasks are key
to making effective use of time in a profession where each day brings different challenges.

Question: Would you recommend to the audience that they should put in a substantial amount
of hard work throughout the day, even on weekdays?
Answer: I don't know whether we can say hard work because sometimes hard work is a negative
expression. So it's not just about hard work, but rather about enjoying what you do with passion
and dedicating quality time to it. When you have a genuine passion, even the most challenging tasks
become manageable and fulfilling. It's about not getting tired of what you do, regardless of your age
or experience. The day you get tired, regardless of your age, I think that's the time to quit.

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 Question: Could you share some insights about your experience during your juniorship, including
what it was like working with your senior and any interesting anecdotes from that time?
Answer: During my juniorship, two individuals greatly influenced my professional development:
Mr. Ashok Desai, a senior counsel and former Solicitor General and Attorney General of India, and
Mr. Anand Bhat, a senior partner at Wadiya Gandhi. Despite a relatively short time with Mr. Desai, his
teachings remain invaluable. Firstly, he emphasized being impartial to both the client and the case,
prioritizing one's duty to the court and the profession. Winning or losing a case didn't matter; what
mattered was giving one's best. Secondly, He also taught me not to obsess over others' actions, but to
focus on my path and opportunities. Lastly, Mr. Desai's ability to switch effortlessly between professional
and personal life was remarkable. He maintained composure and diverse interests, from music to
Buddhism, which enriched his character and practice. Though our time together was brief, the lessons
I learned from him continue to guide my career.

Question: In the Bombay Bar, juniors often spend considerable time in senior chambers, learning
from their seniors about various aspects of practice, including how to present themselves, argue
cases, and prepare briefs. Did you also go through a similar learning process during your early
years, where you absorbed these nuances from your seniors?
Answer : I cannot comment
if my juniors have picked up
something or not. However, my
senior, Mr. Desai was unique
in many ways. His mannerisms,
his courtcraft, his advocacy.
For example. During a case
with a recent Supreme Court
judgment against us, Mr. Desai
cleverly turned the tables. When
the opposing counsel cited
the judgment, Ashok acted as
though it supported our side, catching them off guard. The bench decided to hear our arguments
first, and Mr. Desai’s skillful advocacy ultimately led to a favorable outcome. His ability to turn a
disadvantage into an advantage was remarkable.

Question: Could you share your insights on the current generation of young lawyers and what
they should anticipate when joining a law firm? Additionally, could you shed light on the
evolution of law firms and the journey from your early days to their establishment today, as it
may inspire those looking to start their firms?
Answer: Young lawyers have diverse career paths to choose from in the legal profession, including
litigation and corporate work. The choice depends on personal interests and passion. I began as a
counsel, focusing on litigation. However, some colleagues opted for corporate law and excelled in
transactions like conveyances and collaborations. Success can be achieved in both areas. For me, it was
a transition from a large law firm to establish my practice as a senior counsel, providing me with the
opportunity to handle various types of cases.
I often hear that there's a glamor only on the corporate side. But I think that's a mistake. That's a myth.
Glamour is on both sides, litigation as well as corporate. The key is to be clear about your career path

56 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

and do what you love. Specialization is an option, but even specialists should have a solid foundation
in fundamental laws like contract law and the evidence act, as this knowledge often proves invaluable
in their practice. Success in a specialized field can be complemented by a broad understanding of
the legal fundamentals. Effective communication is vital in all aspects of legal practice, whether in
negotiations, litigation, or specialized fields.

Question: Transitioning from Partner at Economic Law Practice (ELP) to becoming a Counsel
brought about changes in your legal practice. Could you describe how this transition felt? Did it
feel like a natural extension, or were there new challenges to overcome?
Answer: In any relationship, there's a give and take, and this applies to being a partner in a law firm.
It comes with added responsibilities, such as ensuring your team stays busy and their skills are utilized
to the fullest. As a partner, you have to manage your time between lawyering and firm-related activities,
including knowledge-building and management. Despite the extra functions, I enjoyed every moment
in the firm, and it was a valuable period in my career. For young professionals considering their career
path, whether solo, in a law firm, or as a counsel, understanding your role and fulfilling it sincerely is
key to success.

Question: For those interested in setting up a successful tax practice as a lawyer, what advice
would you give, especially for someone starting out like a second-year law student? Is pursuing
certification courses or specialization necessary, or can a broader legal foundation also lead to
success in this field?
Answer: Starting a successful tax practice, or any practice for that matter, should begin without the
pressure of immediate success. Focus on doing what is fundamentally right and success will follow
naturally. For tax practice, constant knowledge-building is crucial, as tax laws are constantly evolving.
Unlike chartered accountants, lawyers don't have formal training programs like CPAs, so it's vital to
stay updated.
Lawyers can't advertise their services, so your reputation is built through word of mouth and
performance. The first break often comes when you confidently make a point, even if you're unsure
about its correctness. Seize every opportunity that comes your way and make your presence felt.
Success is relative and should not be the primary goal. Instead, aim to stand out and catch the
attention of potential clients, colleagues, or seniors. If you make an impact, you will be noticed, and
that is the start of a successful journey.

Question: Is the role of junior counsel still relevant in today's legal landscape, given the growth
of in-house litigation teams in law firms and the changing dynamics in the legal profession?
In Delhi, it seems that the institution of junior counsel doesn't exist, and lawyers handle their
own matters until they gain enough seniority and notice. Can you shed light on the role of
junior counsel in today's legal practice, especially for aspiring lawyers like us who admire first-
generation lawyers like you?
Answer: “The only thing to fear is the fear itself”, a quote by President Roosevelt. Junior counsel
still plays a vital role in today's legal landscape. They have a unique advantage when it comes to
understanding the judge's pulse and courtroom dynamics. Being in court every day gives them an edge
in knowing how to connect with the judge effectively. It's crucial to build that rapport with the judge,
as losing a client or case can happen, but losing the judge's favor should be avoided. So, aspiring
lawyers should not fear the decline of junior counsel roles; instead, they should focus on honing their
courtroom skills and gaining experience. You will get your glory under the sun. Just stick around.

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 Question: How do you efficiently prepare for such a diverse range of legal matters, considering
the broad spectrum of subjects you handle, especially beyond just relying on legal texts?
Answer: To prepare for a wide range of legal matters, remember two key aspects: First, Master Your
Facts: Thoroughly understand the facts of the case. Knowing the facts allows you to identify your
strongest and weakest points. Once you know your strongest point, you can confidently present it,
putting pressure on the other side.
Second, Consider Multiple Perspectives: Put yourself in the shoes of the opponent. Don't have a one-
track mind. Anticipate what the other side might argue. This can only be done effectively if you know
the facts well. Knowing your case inside out enables you to sequence your arguments effectively,
starting with the strongest points and covering the weaker aspects strategically.
In essence, knowing the facts inside out and being able to approach the law from multiple angles is
key to preparing for diverse legal matters.

Question: Which senior counsel or lawyers have significantly influenced your legal career and
advocacy style?
Answer: Several senior counsels have influenced me in various aspects of my legal career. They taught
me how to read judgments, maintain composure in court, and consider percentage success realistically.
About percentage success: Not every case results in 100% victory. Identify where the client needs relief,
even if the main relief isn't granted. Balance your role as an officer of the court and a representative
of the client.

Question: Any recommendation for books for the professionals of tomorrow then?
Answer: I would suggest engaging in diverse activities outside of law, like reading biographies, music,
theater, and sports. Destress shall be the objective. Keep your mind refreshed for new challenges.

Question: Any advice for first-generation lawyers or those with a different language background?
Tips for handling clients as young professionals?
Answer: Firstly, don’t label yourself as a "first-generation lawyer"; focus on being a good lawyer. You
are a lawyer and you must aspire to be a good lawyer. You're fortunate to have great educational
institutions and opportunities today. Regarding retaining clients, deliver quality service, build trust, and
remember clients choose you for your skills, not just your background.
Handle client relationships like any other personal relationship. Focus on honesty, preparation, and
managing expectations. Be realistic about the case's strengths and weaknesses from the start.

Question: Is there a recommended timeframe for law students or aspiring lawyers to train under
an experienced lawyer before considering starting their practice, especially if they don't secure
positions in law firms or senior chambers?
Answer: In summary, if you don't secure a position in a big law firm or senior chamber, don't be
discouraged. Keep yourself busy and relevant in the legal field. There are numerous avenues for
learning and growth, and success can be achieved through dedication and mastering your skills, even
if it takes time. So, even if you don't get into a big law firm if you don't get into a senior chamber,
you could still be an Eklavya who is dedicated to mastering what he's best at.

58 Learning Today … Leading Tomorrow

 The Chamber of
Tax Consultants

A Report on The E-Certificate Course on

The Key Compliances under The Companies Act, 2013
— Mahika Kandarpa
Student of MNLU, Nagpur

The Student Committee of the

Chamber of Tax Consultants,
Mumbai, organized a comprehensive
e-certificate course focusing on key
compliances under the Companies
Act, 2013. The event spanned
three days, from September 4th to
September 6th, 2023, held in a virtual
format. This enlightening program
featured four sessions, each led by distinguished speakers, aiming to provide invaluable insights into
Companies Act compliance.

Esteemed speakers, including CS Meenal Sampat, CS Dipti Chedda, CS Raj Kapadia, and CS Deepti
Jambigi Joshi, guided participants through various aspects of Companies Act compliance, catering to
the needs of aspiring Chartered Accountants and professionals from diverse backgrounds.

The event commenced with a warm welcome from CA Charmi.A.Shah, Convenor of the Student
Committee, followed by an introduction by CA Niyati Mankad, Chairperson of the Student Committee,
who emphasized the Chamber of
Tax Consultants' role in professional
development and networking
opportunities.

Attendees received an overview of the

Chamber of Tax Consultants, a non-
profit organization with a rich history
dating back to 1926. With 97 years of
service, it boasts over 4,000 members
nationwide, dedicated to promoting
member interests through knowledge
exchange and interactive seminars.

Day 1 featured CS Meenal Sampat and CS Dipti Chedda, who covered compliance overviews, timely
compliance tips, the role of in-house counsel, incorporation processes, and post-incorporation
formalities.

Day 2's speaker, CS Raj Kapadia, delved into annual compliances, including AGMs, director
appointments, key disclosures in directors' reports, DIR KYC, and auditor appointments.

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 Day 3 saw CS Deepti Jambigi Joshi
discussing event-based compliances
such as securities issues, acceptance
of deposits, registration of charges,
payment of dividends, and more.
She also touched on SEBI's Listing
Obligations and Insider Trading
requirements.

The workshop's success relied on

the dedication of participants,
organizers, and the expertise
of speakers. Each session
was followed by interactive
Q&A , enriching attendees'
understanding of the
Companies Act. The Student
Committee looks for ward
to hosting more programs
for the growth of aspiring
Chartered Accountants and tax
professionals in the future.

60 Learning Today … Leading Tomorrow

3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai-400 020 The Chamber of
Tel. : 2200 1787/2209 0423/2200 2455 | E-mail: jou@ctconline.org
Website : http://www.ctconline.org.
Tax Consultants