Corporate Updates – 30-10-2015


The Hon’ble Supreme Court vide its interim orders dated July 4, 2012 and September 14, 2015, passed in the case of the Bar Council of India vs A.K. Balaji & Ors., has directed RBI not to grant any permission to any foreign law firm, on or after the date of the said interim order, for opening of Liaison Office (LO) in India. Hence, no foreign law firm shall be permitted to open any LO in India till further orders/notification in this regard. However, foreign law firms which have been granted permission prior to the date of interim order for opening LOs in India may be allowed to continue provided such permission is still in force. No fresh permission/ renewal of permission shall be granted by RBI/AD banks respectively till the policy is reviewed based on, among others, final disposal of the matter by the Hon’ble Supreme Court.


CBDT has set up a Committee with a view to simplify the provisions of the Income Tax Act, 1961, under the Chairmanship of Justice R.V. Easwar, (Retd.), former Judge, Delhi High Court and former President, ITAT. The Committee shall study and identify the provisions/phrases in the Act which are leading to litigation due to different interpretations and to study and identify the provisions which are impacting the ease of doing business. Further, to study and identify the areas and provisions of the Act for simplification in the light of the existing jurisprudence and to suggest alternatives and modifications to the existing provisions and areas so identified to bring about predictability and certainty in tax laws without substantial impact on the tax base and revenue collection. The Committee will put its draft recommendations in the public domain. After stakeholder consultations, the Committee will formalise its recommendations. The Term of the Committee shall be for a period of one year from the date of its constitution.

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