βοΈ Automation Anywhere Inc. v. Dy. CIT (IT) β Delhi ITAT on Software Licence Income, Business Connection & Absence of Permanent Establishment under IndiaβUSA DTAA (2024) π Background The taxation of software licence income and determination of a Permanent Establishment (PE) under Section 9(1)(i) of the Income-tax Act, 1961, continue to be debated in international […]
βοΈ ITOCHU Corporation v. ACIT (IT) β Delhi ITAT on Business Connection, Agency Relationship & Absence of Permanent Establishment under IndiaβJapan DTAA (2024) π Background In cross-border trade arrangements, especially involving Japanese trading houses (sogo shosha), one recurring issue is whether the presence of an Indian subsidiary performing purchasing or selling support functions creates a […]
βοΈ J.M. Voith Se & Co. Kg v. DCIT (IT) Delhi ITAT on Offshore Supply Profit Attribution and Estimation under IndiaβGermany DTAA (2024) π Background Attribution of profits to a Permanent Establishment (PE) in India for offshore supply of equipment continues to be a contentious issue under Section 9(1)(i) of the Income-tax Act, 1961, particularly […]
π’ CIT (IT) v. Augustus Capital Pte. Ltd. β Delhi High Court on Retrospective Application of Explanations 6 & 7 to Section 9(1)(i) and Capital Gains on Indirect Transfers (2024) π Background The taxability of indirect transfers under Section 9(1)(i) of the Income-tax Act, 1961, has been one of the most debated areas of international […]
π¨ Hyatt International Southwest Asia Ltd. vs. ADIT β Delhi High Court on Strategic Oversight Services, Royalty vs. Business Income, and Permanent Establishment (IndiaβUAE DTAA, 2024) π Background The taxation of cross-border service fees often hinges on the crucial distinction between βroyaltyβ and βbusiness incomeβ, and whether a Permanent Establishment (PE) exists in India under […]
π¦ DIT vs. ANZ Grindlays Bank β Delhi High Court on Taxability of Fees Charged by Foreign Branches for Credit Card Services under Section 9(1)(i) (2024) π Background Under Section 9(1)(i) of the Income-tax Act, 1961, income is deemed to accrue or arise in India if it is directly or indirectly attributable to a business […]
π¦ Royal Bank of Scotland N.V. vs. CIT β Calcutta High Court on Tax Rates and Non-Discrimination under IndiaβNetherlands DTAA (2024) π Background The principle of non-discrimination under Article 24(2) of Double Taxation Avoidance Agreements (DTAAs) ensures that foreign enterprises operating in a Contracting State are not taxed less favorably than domestic enterprises under similar […]
π¦ CIT v. Standard Chartered Bank & Bank of Rajasthan Ltd β Supreme Court on Non-Taxability of Interest on Bad and Doubtful Debts (2024) π Background The taxation of interest on bad and doubtful debts has long been a contentious issue in banking taxation. The question fundamentally revolves around whether such interest, which is not […]
βοΈ Serum Institute of India (P.) Ltd. vs. Union of India β Bombay High Court Upholds Constitutional Validity of Section 2(24)(xviii) on Taxation of Subsidies (2024) π Background The Finance Act, 2015 introduced Section 2(24)(xviii) to the Income-tax Act, 1961, expanding the definition of βincomeβ to include all subsidies, grants, cash incentives, duty drawbacks, concessions, […]
π’ Apeejay Surrendra Management Services (P.) Ltd. vs. DCIT β ITAT Kolkata on Deemed Dividend and Beneficial Shareholder Liability (2024) π Background The deeming provisions under Section 2(22)(e) of the Income-tax Act, 1961 are designed to tax loans or advances made by closely held companies to their significant shareholders or to concerns in which such […]