In a recent ruling in the case of Ardex Investments Mauritius Ltd.1 (‘the . the case of Azadi Bachao Andolan (above), no further enquiry on the. Reliance was placed on the Supreme Court rulings in the cases of Azadi Bachao. Andolan and Vodafone6. • The majority of the judges in the. The HC has followed the ruling of the Apex Court in the landmark case of Union of India v. Azadi Bachao Andolan [[] Taxman

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The contrast here is with a commercial meaning of these concepts. Considering the seminal nature of the contention, it is necessary to consider in some detail as to why McDowellwhat it says, and what it does not say. Interestingly, even in this judgment, the Court observed: Income Tax Appellate Tribunal Commenting on this aspect of the matter, David R.

Gauhati High Court The question posed for our consideration is: Arun Nigavekar TM to find other cases containing similar facts and legal issues.

In the last part, it examines the veracity of the current position adopted by the Indian government in its informal responses to the Vodafone arbitration jurisdictionally challenging these proceedings, commenced under the India-Netherlands BIPA, claiming that the said BIPA excludes tax issues.

In order to avoid such an anomalous and incongruous situation, the Governments of different countries enter into bilateral treaties, Conventions or agreements for granting relief against double taxation. In view of the above paragraph 2 in Article X, the Occidental tribunal restricted the FET obligation concerning taxation matters to the three categories therein listed, that is, expropriation, transfers and the observance and enforcement of an investment agreement or authorization.

In Azadi Bachao Andolan suprathe Supreme Court had cautioned that the word sham and device are not intended to be used as magic Although the Indian economic reforms since permitted such capital transfers, the amount would have been much lower without the India-Mauritius tax treaty. An Australian resident was paid pension by Malaysian Government for services rendered to Malaysian Government while he was in service there. In yet another ruling which will shock the industry, the Authority for Advance Ruling AARMaharashtra has ruled that penal interest collected by the applicant.


The Authority concluded that he was entitled to the benefits of the convention. Azadi Bachao Andolan and Anr. Debts Recovery Appellate Tribunal.

The Legislature then enacted an amendment Act in When an economist says that real incomes have fallen, he is not intending to contrast real incomes with imaginary incomes.

See Deepshikha Sikarwar, Govt to Voda: Appellate Tribunal For Electricity 0. The Circular reads as under:. The basic question which needs to be examined is, whether the transactions structured to obtain tax advantage due to the loopholes in tax law or tax treaties be given benediction by the national authorities.

It may, indeed, be difficult for lesser mortals to attain the state of mind of Mr. The very next paragraph which is equally important reads: Under the Income-tax Act, tax was deductible at source at the rates specified under section A etc.

The Hindu : SC settles law on double tax avoidance agreement

HEL caae, 78 a company resident in India for tax purposes. Meghalaya High Court 0. However, the previous decisions of larger benches of the same court do bind them on the basis of doctrine of stare decisis. Appellate Tribunal For Foreign Exchange. Gladden was a case where an American citizen resident in U. Thus, in so far as the India is not a party to VCLT. ITOwhich has rightly concluded that bachoa decision in McDowell cannot be read as laying down that every attempt at tax planning is illegitimate and must be ignored, or that every transaction or arrangement which is perfectly permissible under law, which has the effect of azafi the tax burden of the assessee, must be looked upon with disfavour.

Reference was also made to the judgment of this Court in McDowell, Azadi Bachao Andolan cases and few other judgments. Regional Provident Fund Commissioner and Article azadj provides the scope of application of the Agreement.

Tax policy certainty is crucial for taxpayers including foreign investors to make rational economic choices in the most efficient manner.

Azadi Saves The Day! Court Rules In Favour Of Mauritian Resident Company – Tax – India

Though the Vodafone judgment was warmly received by the commercial bevy, there were some demands, almost immediately, for unsettling the same through a retrospective amendment.

  ISO 23309 PDF

The deduction of tax at source is also an obligation which applies to all payments made inasmuch as Azadi Bachao Andolan10 SCC 1 an act which is otherwise valid in law, cannot be treated as non-est on the ba Do you have a Question or Comment? But making of law under that authority is necessary when the treaty or agreement operates to restrict the rights of citizens or others or modifies the law of the State.

Union of India and another vs. If such be the case, the gains may amount to trading income of such a company. With respect to its tax policies, each Party should strive to accord fairness and equity in the treatment of investment of nationals and companies of the other Party.

Precisely how the end result will be taxed will depend on the terms of the taxing statute sought to be applied. On this aspect one of us, Chinnappa Reddy, J.

International Tax Avoidance Issues: An Analysis of the Indian Law and Policy

Union Of India v. Click here to register your Interest.

Gains derived by a resident of a Contracting State from the alienation of movable property, forming part of the business property of a permanent establishment which an enterprise of a Contracting State bacgao in the other Contracting State, or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment, may be taxed in that other State.

The identities of the respondents, who were working at various levels, holding various positions from Associate to Partner, in their respective organizations at the time of responding to the survey is kept confidential, as agreed with them.

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