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2014 (2) TMI 749 - AAR - Income TaxAdmission of the application u/s 245R(2) of the Act - proposed setting up of the subsidiary and the partnership firm - Allowability of deduction u/s 80IA(4)(i) of the Act – Held that:- The applicant Umesh H Ashar is an individual whereas the statement of facts mentions the applicant as a company registered in UAE - There is no transaction or proposed transaction with the Indian companies mentioned - In order to bring in the question within the scope of section 245N of the Act, there has to be either a transaction undertaken or proposed transaction to be undertaken by the non-resident applicant - This is not the case in the present application - "Transaction" or "proposed transaction" are not the same as mere intention. The applicant intends to invest in a 100 per cent subsidiary company in India which in turn intends to set up a consortium by way of partnership firm with the Indian company and the partnership firm propose to acquire the undertaking of the Indian company which is stated to be eligible for deduction u/s 80IA of the Income-tax Act, 1961 - the 100 per cent subsidiary company has to exist in reality and the partnership firm has to be set up in order to make transaction or proposed transaction of the applicant with the Indian company/subsidiary - The question relates to proposed setting up of the subsidiary and the partnership firm with the Indian company and as to whether the subsidiary or the partnership firm will be eligible to 100 per cent deduction u/s 80IA of the Income-tax Act - the questions posed do not fall under the purview of the Authority – thus, the application is not admitted – Decided against Applicant.
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