Section 220Chapter 13

Foreign company said to be resident in India

(1)

Where a foreign company is said to be a resident in India in any to year and such company has not been a resident in India in earlier tax years, irrespective of anything in this Act and subject to the conditions as notified by Central Government in this behalf, the provisions of this Act relating to—

(a) the computation of total income;

(b)

treatment of unabsorbed depreciation;

(c)

set off or carry forward and set off of losses;

(d)

collection and recovery; and

(e) special provisions relating to avoidance of tax, shall apply with such exceptions, modifications and adaptations as specified that notification for such tax years;

(2)

Where the determination regarding foreign company to be resident India has been made in the assessment proceedings for any tax year, then, 5 provisions of sub-section (1) shall also apply to any other tax year succeeding such tax year, which ends on or before the date of completion of such assessment proceeding.

(3)

Where, in a tax year, any benefit, exemption or relief has been and granted to the foreign company as per the provisions of sub-section (1), subsequently, there is failure to comply with any of the conditions specified the notification issued under the said sub-section, then,—

(a) such benefit, exemption or relief shall be deemed to have wrongly allowed;

(b)

the Assessing Officer may, irrespective of anything in this re-compute the total income of the assessee for the said tax year and the necessary amendment as if the exceptions, modifications adaptation referred to in sub-section (1) did not apply; and

(c) the provisions of section 287section 287 shall, so far as may be, apply and the period of four years specified in sub-section (8) of that being reckoned from the end of the tax year in which the failure to with the condition referred to in sub-section (1) takes place.

(4)

Every notification issued under this section shall be laid before House of Parliament.