Income Tax Act

Official PDF pages 571–575

SOURCE PDF PAGE 571
( i )   a tax year, in a case where the parent entity is resident in India; or
( ii )   an annual accounting period, with respect to which the parent
entity of the international group prepares its financial statements
under any law in force or the applicable accounting standards of
the country or territory of which such entity is resident, in any
other case;
( b )   “agreement” means a combination of all of the following agreements:—
( i )   an agreement entered into under section 159(1) or (2); and
( ii )   an agreement for exchange of the report referred to in sub-section
(2) and notified by the Central Government;
( c )   “alternate reporting entity” means any constituent entity of the interna -
tional group that has been designated by such group, in the place of the
parent entity, to furnish the report of the nature referred to in sub-sec -
tion (2) in the country or territory in which the said constituent entity
is resident on behalf of such group;
( d )   “constituent entity” means—
( i )   any separate entity of an international group that is included in
the consolidated financial statement of the said group for financial
reporting purposes, or may be so included for the said purpose, if
the equity share of any entity of the international group were to be
listed on a stock exchange;
( ii )   any such entity that is excluded from the consolidated financial
statement of the international group solely on the basis of size or
materiality; or
( iii )   any permanent establishment of any separate business entity of the
international group included in sub-clause ( i ) or ( ii ), if such business
unit prepares a separate financial statement for such permanent
establishment for financial reporting, regulatory, tax reporting or
internal management control purposes;
( e )   “group” includes a parent entity and all the entities in respect of which,
for the reason of ownership or control, a consolidated financial statement
for financial reporting purposes—
( i )   is required to be prepared under any law in force or the accounting
standards of the country or territory of which the parent entity is
resident; or
( ii )   would have been required to be prepared, had the equity shares of
any of the enterprises were listed on a stock exchange in the country
or territory of which the parent entity is resident;
( f )   “consolidated financial statement” means the financial statement of an
international group in which the assets, liabilities, income, expenses and
cash flows of the parent entity and the constituent entities are presented
as those of a single economic entity;
( g )   “international group” means any group that includes—

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SOURCE PDF PAGE 572
( i )   two or more enterprises which are resident of different countries
or territories; or
( ii )   an enterprise, being a resident of one country or territory, which
carries on any business through a permanent establishment in other
countries or territories;
( h )   “parent entity” means a constituent entity, of an international group
holding, directly or indirectly, an interest in one or more of the other
constituent entities of the international group, such that—
( i )   it is required to prepare a consolidated financial statement under
any law in force or the accounting standards of the country or
territory of which the entity is resident; or
( ii )   it would have been required to prepare a consolidated financial
statement had the equity shares of any of the enterprises were listed
on a stock exchange,
and, there is no other constituent entity of such group which, due to
ownership of any interest, directly or indirectly, in the first mentioned
constituent entity, is required to prepare a consolidated financial state -
ment, under the circumstances referred to in sub-clause ( i ) or ( ii ), that
includes the separate financial statement of the first mentioned constit -
uent entity;
( i )   “permanent establishment” shall have the meaning assigned to it in
section 173( c );
( j )   “reporting accounting year” means the accounting year in respect of
which the financial and operational results are required to be reflected
in the report referred to in sub-sections (2), (4) and (5);
( k )   “reporting entity” means the constituent entity including the parent entity
or the alternate reporting entity, that is required to furnish a report of
the nature referred to in sub-section (2);
( l )   “systemic failure” with respect to a country or territory means that the
country or territory has an agreement with India providing for exchange
of report of the nature referred to in sub-section (2), but—
( i )   in violation of the said agreement, it has suspended automatic
exchange; or
( ii )   has persistently failed to automatically provide to India the report
in its possession in respect of any international group having a
constituent entity resident in India.
Publication of information respecting assessees in certain cases.
512 .   (1) If the Central Government is of the opinion that it is necessary or expedient
in the public interest to publish the names of any assessees and any other
particulars relating to any proceedings or prosecutions under this Act in respect
of such assessees, it may publish such names and particulars in such manner as it
thinks fit.

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SOURCE PDF PAGE 573
(2) No publication under this section shall be made for any penalty imposed under
this Act, until the time for filing an appeal under section 356 or 357 has expired and
no appeal has been filed, or if an appeal is filed, it has been disposed of.
(3) The names of the partners of the firm, directors, managing agents, secretaries
and treasurers, or managers of the company, or the members of the association, as
the case may be, may also be published under sub-section (1), if, in the opinion of
the Central Government, the circumstances of the case justify it.
Appearance by registered valuer in certain matters.
513 .   (1) Any assessee, entitled or required to attend before any income-tax
authority or the Appellate Tribunal in matters relating to the valuation of any
asset, may attend through a registered valuer.
(2) The provisions of sub-section (1) shall not apply, where the assessee is required
to attend personally for examination on oath or affirmation under section 246.
(3) For the purposes of this section, the expression “registered valuer” means a
person registered as a valuer under section 514.
Registration of valuers.
514 .   (1) The Principal Chief Commissioner or Chief Commissioner, or the
Principal Director General or Director General, shall maintain a register of
valuers in which the names and addresses of persons registered under sub-section
(2) shall be entered.
(2) Any person, possessing such qualification for valuing such class of assets, as may
be prescribed, may apply to the Principal Chief Commissioner or Chief Commis -
sioner, or the Principal Director General or Director General, for getting registered
as a valuer, in such form, verified in such manner and accompanied by such fee, as
may be prescribed, along with a declaration stating that the applicant will––
( a )   conduct an impartial and true valuation of any asset required to be val -
ued;
( b )   furnish a valuation report in the prescribed form;
( c )   charge fees not exceeding the prescribed rate or rates; and
( d )   refrain from undertaking the valuation of any asset in which such person
has a direct or indirect interest.
(3) The valuation report prepared by a registered valuer for any asset shall be in
such form and verified in such manner, as may be prescribed.
Appearance by authorised representative.
515.   (1) An assessee, entitled or required to attend before any income-tax
authority or the Appellate Tribunal for any proceeding under this Act, may
attend through an authorised representative.
(2) The provisions of sub-section (1) shall not apply where an assessee is required
to attend personally for examination on oath or affirmation under section 246.
(3) For the purposes of this section,––
( a )   “authorised representative” means a person authorised by the assessee,
in writing, to appear on his behalf, being—

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SOURCE PDF PAGE 574
( i )   a person related to or regularly employed by the assessee in any
manner; or
( ii )   any officer of a scheduled bank with which the assessee maintains
a current account or has other regular dealings; or
( iii )   any legal practitioner, who is entitled to practise in any civil court
in India; or
( iv )   an accountant; or
( v )   any person, who has passed any accountancy examination recog -
nised by the Board; or
( vi )   any person, who has acquired such educational qualifications, as
may be prescribed; or
( vii )   any person who, before the coming into force of the Income-tax
Act, 1961 (43 of 1961) in the Union territory of Dadra and Nagar
Haveli, Goa, Daman and Diu, or Pondicherry, attended before an
income-tax authority in the said territory on behalf of any assessee
otherwise than as an employee or relative of that assessee; or
( viii )   any other person who was an authorised representative in accord -
ance with the provisions of section 288(2)( vii ) of the Income-tax
Act, 1961 (43 of 1961); or
( ix )   any other person as may be prescribed;
( b )   “accountant” means a chartered accountant as defined in section
2(1)( b ) of the Chartered Accountants Act, 1949 (38 of 1949), who holds
a valid certificate of practice under section 6(1) of that Act, but does not
include [except for representing the assessee under sub-section (1)],—
( i )   in case of an assessee, being a company, a person who is not eligible
for appointment as an auditor of the said company under section
141(3) of the Companies Act, 2013 (18 of 2013); or
( ii )   in any other case, —
( A )   the assessee himself, or in the case of being a firm or asso -
ciation of persons or a Hindu undivided family, any partner
of such firm or a member of such association or such Hindu
undivided family;
( B )   for an assessee, being a registered non-profit organisation, any
person referred to in section 355( h )( i ) or ( ii ) or ( iii ) or ( iv );
( C )   for any person other than the persons referred to in sub-clauses
( A ) and ( B ), the person who is competent to verify the return
under section 263 as per section 265;
( D )   any relative of any of the persons referred to in sub-clauses
( A ), ( B ) and ( C );
( E )   an officer or employee of the assessee;
( F )   an individual, who, is a partner, or who is in the employment,
of an officer or employee of the assessee;

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SOURCE PDF PAGE 575
( G )   an individual, who or his relative or partner—
( I )   is holding any security of, or interest in, the assessee
and the face value of such security or interest held by
his relative does not exceed   `   1,00,000;
( II )   is indebted to the assessee, and such debt in case of his
relative does not exceed   `   1,00,000;
( III )   has given a guarantee or provided security in connection
with the indebtedness of a third person to the assessee
and such relative gives a guarantee or provides security
for an amount not exceeding   `   1,00,000;
( H )   a person who, whether directly or indirectly, has business
relationship with the assessee of such nature, as may be pre -
scribed;
( I )   a person convicted by a court of an offence involving fraud and
ten years has not elapsed from the date of such conviction.
(4) No person,—
( a )   who has been dismissed or removed from Government service; or
( b )   who has been convicted of an offence connected with any income-tax
proceeding or on whom a penalty has been imposed under this Act,
except a penalty imposed under section 271(1)( ii ) or 272A(1)( d ) of the
Income-tax Act, 1961 (43 of 1961) or section 465(1)( d ) of this Act; or
( c )   who has become an insolvent; or
( d )   who has been convicted by a court for an offence involving fraud,
shall be qualified to represent an assessee under sub-section (1), for––
( i )   all times, in case of a person referred to in clause ( a );
( ii )   such time as the Principal Chief Commissioner or Chief Commissioner
or Principal Commissioner or Commissioner may by order determine,
in case of a person referred to in clause ( b );
( iii )   the period during which the insolvency continues, in case of a person
referred to in clause ( c ); and
( iv )   ten years from the date of conviction, in case of a person referred to in
clause ( d ).
(5) If a person,—
( a )   who is a legal practitioner or an accountant, is found guilty of miscon -
duct in his professional capacity by any authority authorised to institute
disciplinary proceedings against him, the order passed by that authority
shall affect his right to attend before an income-tax authority in the
same manner as it affects his right to practise as a legal practitioner or
accountant, as the case may be;
( b )   who is not a legal practitioner or an accountant, and is found guilty of
misconduct in any income-tax proceedings by the prescribed income-tax