ASSESSMENTS OF DOMESTIC

AND FOREIGN COMPANIES

Ketan K. Ved

08 October 2011

Contents

• Meaning

• Basic provisions

• Issues

• Common and peculiar

• Non-technical /procedural and

Assessments of domestic and foreign companies2

• Non-technical /procedural and

Technical

• Practical Tips

• Do’s and don'ts

Meaning

Definition under the Income-tax Act, 1961 (‘ITA’)

“assessment” includes reassessment

- section 2 (8) of the ITA

4 Assessments of domestic and Foreign companies

Dictionary meaning of the word “assessment”:

“Determination of the rate or amount of something, such as

a tax or damages”

Black's Law Dictionary

“Determining the value of man's property or occupation for

the purpose of levying a tax; determining share of a tax to

be paid by each individual”be paid by each individual”

Bouvier Law Dictionary

“a. estimate the value of (a property) for taxation.

b. fix the amount of tax and impose it on a person or a

community

c. fine or tax a person or a community in or at a specific

amount”

Concise Oxford's Dictionary

5 Assessments of domestic and Foreign companies

In simple terms:

An assessment is the process whereby the department

verifies whether the person has complied with the

provisions of law and has paid the tax due on his income.

Viewed in the context of direct tax laws, assessment is the

procedure by which the income of an assessee isprocedure by which the income of an assessee is

determined by the Assessing Officer (AO).

6 Assessments of domestic and Foreign companies

Definition in various judicial pronouncements:

The word assessment bears different meanings and in one

sense it comprehends the entire process of computation

and levy of tax.

- Addnl ITO v. E Alfred [1962] 44 ITR 442 (SC).

The word assessment is used in the Income-tax Act in a

number of provisions in a comprehensive sense and

includes all proceedings, starting with the filing of the returnincludes all proceedings, starting with the filing of the return

or issue of notice and ending with the determination of the

tax payable by the assessee. Though in some sections, the

word ‘assessment’ is used only with the reference to

computation of income, in other sections it has the more

comprehensive meaning as mentioned above

- S Sankappa v ITO [1968] 68 ITR 760 (SC).

7 Assessments of domestic and Foreign companies

Definition in various judicial pronouncements (cont’d):

The word assessment is used in the Act sometimes as

meaning the computation of income, sometimes

determination of the amount of tax payable, sometimes the

whole procedure laid down in the Act for imposing the

liability on the taxpayer. Hence the said word must be

understood in the different sections with reference to the

context in which it is used.

- CIT v V.D. Saraf (HUF) [1994] 207 ITR 217.

8 Assessments of domestic and Foreign companies

APPEAL TO ITAT

APPEAL TO HIGH COURT

APPEAL TO SUPREME COURT

Income-tax – Stages

RETURN OF INCOME

ASSESSMENT PROCEEDINGS

APPEAL TO CIT(A)

9

Basic provisions

Basic provisions – Chapter XIV of the ITA

Return of income

• Section 139(1) - Due dates for filing the return.

• Section 139(3) - Loss return

• Section 139(4) - Belated return

• Section 139 (5) - Revised return

Section 140A: Self-assessment:

Regular assessment: -

Section 2 (40) - Regular Assessment means assessment under sub-section (3) of

Section 143 or Section 144 of the Income-tax Act, 1961.

Assessments of domestic and foreign companies11

Basic provisions

• Section 142 - Inquiry before assessment.

• Section 143 - Assessment

• Section 144 - Best judgment assessment.

• Section 144 A - Power of Joint Commissioner to issue directions in certain cases.

• Section 144C - Reference to dispute resolution panel.

• Section 147 - Income escaping assessment.

• Section 148 - Issue of notice where income has escaped assessment.

• Section 149 - Time limit for notice.

• Section 150 - Provision for cases where assessment is in pursuance of an order on

appeal, etc.

Assessments of domestic and foreign companies

Basic provisions

• Section 151 - Sanction for issue of notice.

• Section 153 - Time limit for completion of assessments and reassessments.

• Section 154 - Rectification of mistake.

• Section 157 - Intimation of loss.

• Section 158BA - Assessment of undisclosed income as a result of search.

Assessments of domestic and foreign companies

Basic provisions

Common questions which come to mind once a notice u/s. 143 (2) of the ITA

intimating that the return of income filed is selected for a scrutiny assessment:

• Why and how is my return selected for a scrutiny assessment:

• Why is it that only my return is selected for scrutiny

• Is it my bad luck ?

14 Assessments of domestic and foreign companies

Selection of a case for scrutiny is based on

“CASS” and also on the guidelines issues by

the CBDT.

Basic provisions:

Most prominent reasons for a case being selected for a scrutiny assessment –

based on the guidelines issued by the CBDT for selection of cases for scrutiny

during 2010-2011:

• Value of international transaction as defined u/s 92B exceeds Rs. 15 crores.

• Cases involving addition in an earlier assessment year in excess of Rs.10 lacs

on a substantial and recurring question of law or fact which is confirmed in

appeal or is pending before an appellate authority.appeal or is pending before an appellate authority.

• Cases involving addition in an earlier assessment year on the issue of transfer

pricing in excess of Rs.10 Lakhs / crores or more.

• Trust returns where “gross receipts” exceed Rs. 5 crores.

• Assessment in Search & Seizure cases to be made under sections 158B,

158BC, 158BD, 153A 153C & 143(3) of the IT Act.

15 Assessments of domestic and foreign companies

Basic provisions:

Most prominent reasons for a case being selected for a scrutiny assessment –

based on the guidelines issued by the CBDT for selection of cases for scrutiny

during 2010-2011 (cont’d):

• Assessments in survey cases for the financial year in which survey was carried

out This criteria will not apply if all of the following conditions are fulfilled:

‒ There are no impounded books or documents.

‒ There is no retraction of disclosure made during the survey.

‒

‒

‒ There is no retraction of disclosure made during the survey.

‒ Declared income, excluding any disclosure made during the survey, is nor

less than the declared income of the preceding assessment year.

• Assessments initiated under section 147 / 148 of the IT Act.

• Assessing Officer may select any return of scrutiny after recording the reasons

and obtaining approval of the CCIT/DGIT. The cases under this category

should be selected if there are compelling reasons and the case is not selected

through CASS. There cases should be watched by CCIT / CIT in respect of the

quality of assessment. Maximum limit of 10 cases per AO.

16 Assessments of domestic and foreign companies

Basic provisions:

Can one find out why its return was selected for a scrutiny assessment under the

RTI?

As per the CBDT instruction, the guidelines are meant only for the use of officers

of the Income Tax Department. These are not be disclosed even if a request is

made under the right to Information Act, in view of the decision of the Central

Information Commission in the case of Shri Kamal Anand Vs Director (ITA-II),

CBDT (Order No. CIC/AT/2007/00617 dated 21.02.2008).

17 Assessments of domestic and foreign companies

Issues

Issues

Time limit for issue of notice u/s. 143 (2)

(2) Where a return has been furnished under section 139, or in response to a

notice under sub-section (1) of section 142, the Assessing Officer shall,—

(i) …………………

(ii) notwithstanding anything contained in clause (i), if he considers it necessary or

expedient to ensure that the assessee has not understated the income or has not

computed excessive loss or has not under-paid the tax in any manner, serve oncomputed excessive loss or has not under-paid the tax in any manner, serve on

the assessee a notice requiring him, on a date to be specified therein, either to

attend his office or to produce, or cause to be produced, any evidence on which

the assessee may rely in support of the return:

Provided that no notice under clause (ii) shall be served on the assessee

after the expiry of six months from the end of the financial year in which the

return is furnished.

19 Assessments of domestic and foreign companies

Issues

Things to do on receipt of the first notice:

• Check-up front whether it is received within time limit prescribed.

• If not then one needs to object to that before the AO

• Refer section 292BB (w.e.f. 01 April 2008) – objection has to be raised before

the completion of assessment/re-assessment – need not be in the 1st shot.

• Decision of the Apex Court in the case of Hotel Blue Moon 321 ITR 362.• Decision of the Apex Court in the case of Hotel Blue Moon 321 ITR 362.

• Bombay High Court decision in the case of Rasiklal Manikchand Dhariwal –

Unreported dated 13 July 2011.

‒ Contrary view taken by the Delhi High Court in the case of Madhya Bharat

Energy Corpn. Ltd. dated 11 July 2011 – ignoring decision of the Supreme

Court in Hotel Blue Moon

• Attend in response to the first notice

‒ Once attended and the AO intimates that the notice was only to comply with the time

barring; file a letter recording that discussions.

20 Assessments of domestic and foreign companies

Issues

Service of notice:

• Where the assessee affirms by way of an affidavit that notice u/s 143(2) was

not received by him within the prescribed time, the onus lies with the

department to conclusively prove that the notice was served upon the

assessee within the prescribed time. Failure to do so shall lead to set aside of

the assessment as it was held in CIT v Lunar Diamonds Ltd.[2006] 281 ITR

1(Del.).

• Ensure that the original envelope in which the Notice/s is received is stored;

21 Assessments of domestic and foreign companies

Issues

Claims during assessment proceedings:

In today’s day and age of e-filing how does one lodge legal claims during the

assessment proceedings, keeping in mind the draconian penal provisions:

• Make a detailed statement showing computation of total income;

‒ Include all legal claims;

‒

‒

‒ Cite latest case-laws applicable.

• Furnish all documentation in support of the claims as required

‒ Keeping in mind possible litigation;

‒ Difficulty in getting “additional evidence” admitted.

22 Assessments of domestic and foreign companies

Issues

Claims during assessment proceedings (Cont’d):

• On a specific query by the AO; submit exact details as called for;

‒ This will avoid an “adverse observation” by the AO that the details as called for

were not produced;

‒ File details under cover of a letter;

‒

‒

‒ If no acknowledgement given – make notings both in the proceeding sheet

and also on the office copy of the letter furnished;

‒ Ensure that the AO makes a noting in his “order sheet”.

‒ Also, make a reference to the details filed in the earlier letters in the

subsequent letters filed with the AO.

23 Assessments of domestic and foreign companies

Issues

New claims during assessment proceedings:

• Decision of the Supreme Court in the case of Goetze India – refer section 284

ITR 323;

• File a revised return wherever possible;

• If not, atleast file a revised statement showing computation of total income.

• Rely on:

‒

• Rely on:

• CBDT Circular No. 14 dated 11 April 1955

‒ Duty of AO to give claims admissible to assessee

• Article 265 of Indian Constitution

‒ No tax except by authority of law;

• Principle that there is no estoppel against law

24 Assessments of domestic and foreign companies

AIM IS TO MAKE IT IMPOSSIBLE FOR THE AO TO SAY NO

&

IF HE SAYS NO THEN IT IS DIFFICULT FOR CIT(A) TO SAY NO

Issues

Without prejudice claims:

• Make all possible claims;

• Make all possible arguments;

• If not capital then revenue

• If not revenue then capital• If not revenue then capital

• If neither then “deferred revenue”

25 Assessments of domestic and foreign companies

You don’t want the ITAT to send you back to the AO /

CIT(A) saying “this claim was not considered by them”.

Issues

Production of books of accounts:

• If books of accounts are produced for verification please make a note of that in

the letter that “the books are being presented for verification alongwith the

vouchers, etc.”.

• Never try and take a shelter against filing / producing books of accounts by

saying that “books are bulkier and hence can’t be produced for verification”.

• If possible give the soft copy of the books of accounts;

• Produce sample books and vouchers;

26 Assessments of domestic and foreign companies

ALWAYS SHOW A POSTIVE ATTITUDE

Issues

Cross examination:

• Always insist on cross-examination of the person on whom the AO has relied

on;

• Make a written request;

• Make repeated requests.• Make repeated requests.

Ask for material sought to be used against you:

• Mention in your request for the same that in case it is not submitted you

propose to draw adverse inferences.

27 Assessments of domestic and foreign companies

Issues

Common technical issues in corporate assessments:

• Section 14A disallowance;

• Life after Rule 8D;

• Life after the decision of the Bombay High Court in the case of Godrej & Boyce Mfg.

Co. Ltd. v/s. DCIT (2010) 234 CTR 1 (Bom)

• Share trading – whether business income or capital gains

• Circular No. 4/2007 dated 15 June 2007 issued by the Central Board of Direct Taxes.

• Decisions of SC and HC in Gopal Purohit;• Decisions of SC and HC in Gopal Purohit;

• Contrary decisions of various benches of the ITAT

• Disallowance of provisions for diminution in value of “stock”;

• Decision of Bombay High Court in the case of Alfa Laval India Ltd. v/s.DCIT

(2004) 266 ITR 0418 (BOM), which is subsequently affirmed by the Apex

court;

• MAT implications

28 Assessments of domestic and foreign companies

Issues Common technical issues in corporate assessments (cont’d):

• Warranty provisions;

‒ Rotork Controls India (P) Ltd. v/s. CIT (2009) 314 ITR 62(SC)

• Disallowance of loans given to subsidiary/ies written off;

‒ Commercial expediency is required to be shown

• Foreign exchange fluctuation

‒ Loss whether allowable;

‒

‒ Loss whether allowable;

‒ Gains whether taxable.

• Losses on derivative transactions

‒ Loss whether allowable;

‒ Gains whether taxable

‒ Treatment u/s. 115JB

• Business income / income from house property;

• Composite letting out

29 Assessments of domestic and foreign companies

Issues

Common technical issues in corporate assessments (cont’d):

• Business income / income from other sources;

• Temporary suspension of business

• Depreciation

‒ Allowable on what;

‒ Intangibles

‒ Goodwill

‒

‒

‒

‒ Goodwill

‒ Non-compete fees;

‒ Additional depreciation;

• Bad-debts;

‒ Stock-broker:

• Capital or revenue expenditure

‒ Ascertain what is the “asset” of enduring nature created;

‒ Ask the AO;

30 Assessments of domestic and foreign companies

Issues

Common technical issues in corporate assessments (cont’d):

• Personal expenditure;

‒ How can a company have “personal expenditure”.

• Fine or penalty;

• Justification / necessity for incurring the expenditure;

‒ Quantum of expenditure

‒ Gifts;

‒

‒

‒ Gifts;

‒ Donations to local institutions;

• Diversification of business;

• Abandoned project expenditure – allowability;

• Club expenses;

• Directors studies;

• Foreign travel;

31 Assessments of domestic and foreign companies

Issues

Common technical issues in corporate assessments (cont’d):

• Payment to ex-employees;

• Taxes paid in foreign jurisdictions;

• Corporate Social Responsibility expenses;

• Remission or cessation of liability (Section 41 (1));

‒ Old outstanding’s;

‒ Loan waivers;

‒

‒

• Section 43B;

‒ Service tax;

‒ Inclusion u/s. 145A;

‒ Advance payment of taxes

• Section 50C;

‒ On stock-in-trade;

‒ Section 50C v/s. Section 50;

‒ Section 50C v/s. Section 50B;

32 Assessments of domestic and foreign companies

Issues

Common technical issues in corporate assessments (cont’d):

• Reference to the DVO;

• Cash-credits;

• Losses-set-off

‒ Section 70;

‒ Section 72A – “industrial undertaking”;

‒ Section 79 – “beneficial ownership”

‒

‒

‒

‒ Section 32 (2) – Special Bench in “Times Guarantee”.

• Allowability of deduction:

‒ Date of set-up;

‒ Whether it is “manufacturing”;

‒ Section 80-IA (5);

‒ Interest income – whether eligible for deduction;

‒ Loss in one unit – set-off against other;

‒ Income from captive power plants;

‒ Report from an Accountant

33 Assessments of domestic and foreign companies

Issues

Common technical issues in corporate assessments (cont’d):

• Section 115JB

‒ How to set-off losses / unabsorbed depreciation;

‒ What is to be added ?

• Pre-commencement interest received – whether capital or revenue receipt;

• Whether TDS applies on payment of royalties – “shrink wrapped software”;

• Taxability of notional rent while computing income from house property;

• Additions made on account of AIR database;

34 Assessments of domestic and foreign companies

Issues

Re-opening

• Procedure to be followed – law laid down by the Apex Court in the case of GKN

Driveshafts – 259 ITR 19:

‒ Receive notice;

‒ File a return;

‒ Ask for reasons;

‒ File objections;

‒

‒

‒

‒ AO to dispose off objections.

• The whole foundation of the re-opening (its validity) is based on the recording of

reasons;

• The reasons should stand the test of judicial scrutiny;

‒ Re-opening within 4 years;

‒ Re-opening beyond 4 years;

• Allegation on “failure to disclose”;

35 Assessments of domestic and foreign companies

Issues

Re-opening (Cont’d)

• Whether requisite sanction obtained;

• It is mandatory to issue of Notice u/s. 143(2) within six months from the end of

the Assessment Year in which return in response to the Notice u/s. 148 is filed.

Non issue of notice under section 143(2), after filing of return by assessee

vitiated the reassessment proceedings.

• In case the AO had asked the details from the assessee earlier to enable him to

prepare reply for the Audit Objections, record of such proceeding also should be

maintained since as per various decisions of HCs if the AO has in the

preliminary stage rejected the contention of the audit department then the

subsequent re-opening will amount to change of opinion.

• Retrospective amendment can not be a basis for re-opening of the assessment.

36 Assessments of domestic and foreign companies

Issues

Re-opening (Cont’d)

• Can a re-opening be said to be valid – when no addition is made on the very

reason for which the assessment was re-opened;

• Reasons recorded refer to and rely on a disallowance made in the earlier /

subsequent year – which addition stands deleted;

‒ Can the re-opening survive;‒

• Notice u/s. 148 is issued within the period of 6 years;

‒ But reasons communicated beyond the period of 6 years;

‒ Is the assessment valid.

Assessments of domestic and foreign companies37

Issues

Assessment giving effect to the appellate / revisional orders

• ITA contains specific provisions authorizing the relevant authorities (i.e. CIT and

ITAT) to modify the assessment after it is finalized by the AO.

• ITAT can set aside the matter to the file of the AO to examine the issue after

allowing the assessee the opportunity.

• Where the matter is set aside with specific directions to the AO, the AO is

required to remain within the confine of such directions.required to remain within the confine of such directions.

• Also, when the original assessment was set aside by the CIT in revision u/s. 263

or 264, the scope of inquiry and assessment will be confined to matters in

respect of which a notice of hearing was provided by the CIT to the assessee

and a finding of prima facie prejudice to the revenue was recorded by him.

• The AO while deciding the matters has the same power while making original

assessment proceedings in respect of the issues under consideration.

38 Assessments of domestic and foreign companies

Issues

Assessment giving effect to the appellate / revisional orders

Section 153 (2A):

(2A) Notwithstanding anything contained in sub-sections (1) 61[, (1A), (1B)] and

(2), in relation to the assessment year commencing on the 1st day of April, 1971,

and any subsequent assessment year, an order of fresh assessment in pursuance

of an order under section 250 or section 254 or section 263 or section 264, setting

aside or cancelling an assessment, may be made at any time before the expiry of

one year from the end of the financial year in which the order under section 250 or one year from the end of the financial year in which the order under section 250 or

section 254 is received by the Chief Commissioner or Commissioner or, as the

case may be, the order under section 263 or section 264 is passed by the Chief

Commissioner or Commissioner:

39 Assessments of domestic and foreign companies

Issues

Issues in foreign company taxation:

• Applicability of DTAA provisions

‒ Importance of the Tax Residency Certificate;

‒ Validity thereof;

• Existence or otherwise of a Permanent Establishment (PE);

‒ Presence of employee/other personnel in India;

‒

‒

‒ Presence of employee/other personnel in India;

‒ Nature of services;

‒ Offshore supply of equipment’s and on onshore rendering of services;

• Purchase of software;

• Taxability of inter-corporate reimbursements;

• Interest on income-tax refund received – whether attributable to the PE;

40 Assessments of domestic and foreign companies

Issues

Issues in foreign company taxation:

• Whether liaison office in India is a PE;

• Quantum of income “attributable” to the PE;

• Having a subsidiary in India – does it give rise to a PE;

• Agency PE – “dependency test”;

• Applicability of TP provisions;

• Applicability of Tax Audit provisions;

• Not granting tax holiday on suo-moto arm’s length adjustments – section 92C

(4);

• Applicability of the proviso to section 11241 Assessments of domestic and foreign companies

Issues

Section 144C: Reference to dispute resolution panel:

• The Finance (No.2) Act 2009 introduced a Dispute Resolution mechanism for

‒ Taxpayers subjected to a transfer pricing adjustment; and

‒ Foreign companies

• The Dispute Resolution Panel (Panel) comprises of three Commissioners of • The Dispute Resolution Panel (Panel) comprises of three Commissioners of

Income-tax.

• The dispute resolution process would proceed on the following lines —

‒ Before passing an adverse order, the AO to forward a draft of the adverse

order to the taxpayer

‒ The taxpayer can file its objections (if any) with the Panel and the AO, within

30 days of the receipt of the draft order.

‒ The Panel would consider the facts and circumstances of the case and issue

appropriate directions to the AO, within a maximum period of 9 months

‒ The directions issued by Panel are binding on the AO42 Assessments of domestic and foreign companies

Issues

Section 144C: Reference to dispute resolution panel:

Powers and duty of DRP

• DRP may confirm, reduce or enhance the variations as proposed by tax

authority.

• DRP cannot set aside the variation to tax authority.

• DRP cannot leave adjudication of issue to tax authority by directing the tax

authority to pass order of assessment by conducting further inquiry.

• Decision to be based on opinion of the majority of the members.

• No direction can be issued by DRP after nine months from end of month in

which draft order is forwarded to eligible taxpayer

• The DRP has powers as vested in a court under the code of civil procedure,

1908

43 Assessments of domestic and foreign companies

Issues

Section 144C: Reference to dispute resolution panel:

Issues

• Can DRP consider issues which are not covered in the draft order?

• Can DRP consider issues which are covered in the draft order but not

challenged by the taxpayer?challenged by the taxpayer?

• Does the taxpayer have an option to withdraw objections filed with DRP?

• Can the order passed pursuant to directions of DRP can be revised u/s. 263.

• Whether penalty orders, withholding tax orders, etc., can be referred to DRP?

44 Assessments of domestic and foreign companies

Issues

Trend of TP adjustments over the years

• Six years of transfer pricing audit completed – the trends indicate

greater scrutiny, leading to increased adjustments and resultant

litigation

Financial

year

Number

of cases

Cases

adjusted

Cases

adjusted (%)

Estimated

addition (USD)

2001 – 2002 1081 238 22% 305 million

2002 – 2003 1501 345 23% 572 million

2003 – 2004 1768 477 27% 858 million

2004 – 2005 1479 370 25% 1100 million

2005 – 2006 1717 1019 59% 2165 million

2006 – 2007 N/A N/A More than 50%4444 million

(approx)

Assessments of domestic and foreign companies45

Issues

Trends in TP assessment:

• Comparison of intra-group fees with local market price of similar services

‒ Cost base in India is considerably lower compared to developed countries

• In a recent tax ruling, it was observed that terms of intra-group charges in the

agreement were independent of nature and volume of services

‒‒ Responsibility of taxpayer to establish that payments are commensurate to

the volume and quality of services received

‒ Costs recharged for intra-group services should be based on actual services

rendered and not on terms contained in the inter-company agreements

46 Assessments of domestic and foreign companies

Issues

Common issues arising in TP assessment:

• Marketing intangibles

• Royalty

• Intra-group management services

• Mark-ups for captive intra-group service providers

• Guarantee fees

• Re-characterization of business

47 Assessments of domestic and foreign companies

Practical Tips

• Returns, reports and documents to be thoroughly checked before filing - to

ensure no contradiction.

• Notices and communications from the department should be promptly replied to.

• If the AO is not present or available on the appointed day, record should be

maintained in the file noting this fact.

• If it is felt that the assessing authority is of an adversarial attitude all oral

Practical tips

• If it is felt that the assessing authority is of an adversarial attitude all oral

submissions should be reproduced in writing.

• All submissions relating to facts, undertakings and declarations should be

signed only by an assessee unless otherwise specifically required to be signed

by the representative.

• Alternative pleas and claims to be made promptly.

49 Assessments of domestic and foreign companies

Practical tips

• If a particular addition is agreed to buy peace that fact should be explicitly

brought out in the submission.

• Even if all the requirements of the department’s notice cannot be complied with,

the assessee must try to comply with a majority of them.

• If there is any delay or infringement then the default should be explained, both

on merits and on technical grounds.

• Always keep a window open – for filing further details, if called for.

50 Assessments of domestic and foreign companies

Practical tips

Preparation – technical

• Thorough knowledge of facts and issues

• Case records

• Discussions with client

• Analysis of relevant case laws

• Fall back options

• Time Schedule

51 Assessments of domestic and foreign companies

Practical tips:

Making the representation:

• Punctuality

• Lucid language

• Overview – Summary

• Brief facts, earlier proceedings, legal issues arguments, case laws• Brief facts, earlier proceedings, legal issues arguments, case laws

• Reference to sections, circulars, orders, paper book, copies of case laws and chart

• Simple numerical examples

• Be careful in use of analogies

• Distinguish or rebut cases/ incorrect facts relied upon by the opposite side

52 Assessments of domestic and foreign companies

Practical tips:

• No point should be conceded without prior consent of client

• Summary

• Suggest – do not insist

• Let the other person feel that the idea is his

• Try to see things from the authority’s point of view

• Resist getting personal

• Be moderate in criticism

53 Assessments of domestic and foreign companies

Practical tips:

• Make the fault seem easy to correct

• Make the other person feel important

• Repeat wherever necessary

• Pause from time to time

• Be time conscious

54 Assessments of domestic and foreign companies

Do’s and Don’ts

Do’s and Don’ts

• File letter of authority in advance.

• Be punctual and learn time management.

• Listen all queries that may be raised carefully without interruption and answerthe same directly.

• Not necessary that all replies are given immediately;

• Buy some time to take instructions;• Buy some time to take instructions;

• Communicate effectively

• In opening an argument, put forth the best points which cannot be disputed.

• Rapport with the juniors / assistants of the Authority

Assessments of domestic and foreign companies56

Do’s and Don’ts (Cont’d)

• No Show-off of knowledge – Always remember the objective

• Not to underestimate the capabilities

• Never be Over Confident.

• Avoid Repetition.

• Do not argue loudly.

• Don’t get annoyed if interrupted by the Bench.• Don’t get annoyed if interrupted by the Bench.

• Sharing info with client (use discretion)

• Be aware of latest milestone judgments - even if not relevant for the matter

• Avoid talking about others – companies, advisers and officers

57 Assessments of domestic and foreign companies

Questions?

Thank You

59