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