S.R. Patnaik

Head and Partner in the Tax Practice at the Delhi office of Cyril Amarchand Mangaldas. Mr. Patnaik specialises in various aspects of direct tax, such as international tax, transfer pricing, corporate tax etc. He can be reached at sr.patnaik@cyrilshroff.com

Firm/Organization: Cyril Amarchand Mangaldas

Blogs: India Corporate Law, India Tax Law

Latest Articles

India Tax Law

Never-Ending Saga: Are the Assets/Monies Distributed to Retiring Partners Taxable?

By S.R. Patnaik & Thangadurai V.P on May 22, 2019

Disputes involving whether capital gains taxes are leviable on sums/assets paid to retiring partners has been a subject matter of litigation for several decades now. In order to bring clarity, the legislature introduced a new provision (i.e. section 45(4)) into the Income tax Act, 1961 (IT Act), which provided that capital gains tax should be levied in the hands of the partnership firm at the time of distribution of assets. This seems, however, to have…

India Tax Law

Bombay High Court Sets Aside CBDT’s Proposal to Reward CIT(A)s for Pro Revenue Orders

By S.R. Patnaik & Thangadurai V.P on April 26, 2019

In the Chamber of Tax consultants & ors v. CBDT and Union of India)[1], the Hon’ble Bombay High Court (HC) set aside a portion of the Central Board of Direct Taxes’ (CBDT) action plan that sought to incentivise commissioners of income tax (Appeals) (CIT(A)) whose orders have led to enhanced tax demand from the tax payers. The HC noted that the proviso to the section 119 of the Income tax Act, 1961 (IT Act)…

India Tax Law

Control and Supervision is the Important Factor to Determine the Nature of Reimbursements in Secondment Agreements

By S.R. Patnaik & Ritu Anand on November 21, 2018

With increasing globalisation of the world economy, the continuous movement of people from one jurisdiction to another has become imminent. However, such decisions have also created a significant amount of uncertainty, not only because of the social impact of such movement, but also because it creates tax complexities. In a recent case, the Income Tax Appellate Tribunal (ITAT) had the occasion to examine the tax implications of reimbursement of salaries and other expenses in the…

India Tax Law

NCLT Smell Tests GAAR! Rejects Ajanta Pharma’s Scheme of Merger on Grounds of Tax Avoidance

By S.R. Patnaik, Kunal Savani & Jyoti Anumolu on September 20, 2018

Recently, the National Company Law Tribunal (NCLT) rejected Ajanta Pharma Limited’s (Ajanta Pharma) scheme of amalgamation and arrangement (Scheme) between the company and its shareholder Gabs Investments Private Limited (Gabs Investments) on the grounds of General Anti Avoidance Rules (GAAR).…

India Tax Law

Expenses Excluded from Export Turnover, also to be Excluded from Total Turnover

By S.R. Patnaik & Abhimanyu Hazari on June 13, 2018

The Income Tax Act, 1961 (IT Act) contains several special beneficial provisions that allow for deductions in order to promote certain activities. One such provision is Section 10A of the IT Act, which seeks to promote and boost new business undertakings situated in free trade zones by providing suitable deductions. It provides for a 100 percent deduction of profits and gains derived by undertakings engaged in export of articles or computer software. The deduction is…

India Tax Law

SC Holds that Income from SARs is Taxed as Capital Gains Only

By S.R. Patnaik & Shweta Dutta on June 4, 2018

Stock Appreciation Rights (SARs) are recognised globally as one of the most popular instruments of stock-based compensation. SARs are alternatives adopted for implementing equity-based compensation plans like an employee stock option or employee stock purchase. SARs can be structured as either ‘equity settled’ or ‘cash settled’. As a concept, SARs contemplate passing on of appreciation in the value of a certain number of equity shares to employees. The Income Tax Act, 1961 (IT Act) did…

India Tax Law

Taxing the Digital Economy: The Rule of ‘Significant Economic Presence’

By S.R. Patnaik on March 21, 2018

Taxation of international digital transactions has been a perplexing issue. As per the international tax rules, where an enterprise is a resident in one state with income originating in another state (source country), international tax rules provide that the source country will have the taxing rights over such income only if it is established that the enterprise has a permanent establishment (PE) in the source country. Thus, for the source country to be able to…

India Tax Law

First Impressions of the Budget 2018: Income Tax Act – Part II

By S.R. Patnaik on February 6, 2018

Published here is Part II, the concluding section, of our blog piece on the key amendments proposed under Budget 2018 to the Income Tax Act. You can view Part I here. We hope you enjoy reading this as much as we have enjoyed putting this together. Amendments in Relation to Income Computation Disclosure Standards (ICDS): Recently, the Delhi High Court had held that some provisions of the ICDS are unconstitutional for want of legislative…

India Tax Law

First Impressions of the Budget 2018: Income Tax Act – Part I

By S.R. Patnaik on February 5, 2018

This is the first post in the our new blog series on the Budget 2018. This is a two-part piece on the amendments proposed under this Budget to the Income Tax Act; published here is Part I. We hope you enjoy reading this as much as we have enjoyed putting this together. On 1st February, 2018, the Finance Minister Mr. Arun Jaitley presented the last full-year Union Budget before the 2019 Lok Sabha elections. It was…

India Tax Law

NCLT Can Reject a Scheme of Arrangement if it is not in Public Interest

By S.R. Patnaik on January 18, 2018

In the case of Wiki Kids Limited[1], the NCLAT upheld the order of the NCLT rejecting a scheme of amalgamation, as it resulted in undue advantage to the promoters of the amalgamating company. Facts Background In the instant case, a non-listed company Wiki Kids Limited (Transferor Company), wished to amalgamate with Avantel Limited, a listed company (Transferee Company). For the aforesaid purpose, these entities (collectively referred to as Appellants) had proposed a scheme of amalgamation…

S.R. Patnaik

Never-Ending Saga: Are the Assets/Monies Distributed to Retiring Partners Taxable?

Bombay High Court Sets Aside CBDT’s Proposal to Reward CIT(A)s for Pro Revenue Orders

Control and Supervision is the Important Factor to Determine the Nature of Reimbursements in Secondment Agreements

NCLT Smell Tests GAAR! Rejects Ajanta Pharma’s Scheme of Merger on Grounds of Tax Avoidance

Expenses Excluded from Export Turnover, also to be Excluded from Total Turnover

SC Holds that Income from SARs is Taxed as Capital Gains Only

Taxing the Digital Economy: The Rule of ‘Significant Economic Presence’

First Impressions of the Budget 2018: Income Tax Act – Part II

First Impressions of the Budget 2018: Income Tax Act – Part I

NCLT Can Reject a Scheme of Arrangement if it is not in Public Interest

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