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

Bhagirathi Dass was quoted with The CBDT had approached the Indian High Commissioner at Mauritius to take up the matter with the Mauritian authorities to ensure that benefit of the bilateral tax treaty were not allowed to be misused, by suitable amendment in Article 13 of the agreement.

Commissioner Caze Income Tax v.

In the United States such a treaty becomes a part of municipal law upon ratification by the Senate. No deduction in respect of any payment made to any financial institution in Cyrus shall be allowed unless the assessee furnishes an authorization allowing for seeking relevant information from the said financial institution.

In order to allow your request to proceed we have automatically split your selection into separate batches each containing a maximum of documents. It provides that gains from the alienation of immovable property may be taxed in the Contracting State in which such property is situated. What it did decide was that that cardinal principle does not, where it is plain that a particular transaction is but one step in a connected series of interdependent steps designed to produce a single composite overall result, compel the court to regard it as otherwise than what it is, that is to say merely a part of the composite whole.

The Law and Practice of Income Tax — 9d ed.

Azadi Bachao Andolan[] ITRwhich was either before them to support the claim that the From the above observations of the Supreme Court, drawn from the conspectus of authorities, it is difficult to say what will be the outcome of a judicial challenge if it is ever mounted against such a retrospective amendments; and it depends on the overall facts and circumstances, the nature of amendment and the approach of the court deciding the matter. It argued that it was a Mauritian ‘resident’ for the purposes of the Treaty and therefore squarely entitled to Treaty benefits.


Account must be taken of the surrounding facts and circumstances relating to the taxation and the legislative background of the provision.

The appellant McDowell and Co. An important principle which needs to be kept in mind in the interpretation of the provisions of an international treaty, including one for double taxation relief, is that treaties are negotiated and entered into at a political level and have several considerations as their bases. It is one of the functions of the assessing officer to ensure that there is no conscious avoidance of tax by an assessee, and such function being quasi-judicial in nature, cannot be interfered with or prohibited.

Either the statute applies proprio vigore or it does not. Andhra Pradesh High Court. In the said decisio Such immobility must result either in loss of tax, to the prejudice of other taxpayers, or to Parliamentary congestion or most likely to both. Hon ble the Supreme Court in the concluding paras of its judgment in Azadi Bachao Andolan supra has rejected the The drafting of treaties is notoriously sloppy usually for very good reason. Adani Power Maharashtra Ltd.

Meghalaya High Court 0. Jammu and Kashmir High Court 4. In fact the Bachqo Taxation Avoidance Agreements which have been entered into by the Central Government under section 90 of the Income-tax Act,also provide that the laws in force in either country will continue to govern the assessment and taxation of income in the respective country except where provisions to the contrary have been made in the Agreement.

The learned Senior Counsel pointed out that Azadi Bachao The possibility urged by the learned counsel certainly exists and cannot be ruled out without examination of facts. The purpose of section 90 becomes clear by reference to its legislative history. In our opinion this would be the ratio of that judgment. He further submitted that in a recent judgment in the case of Union of India v. Manipur High Court 1.


The Hindu : SC settles law on double tax avoidance agreement

The only bar on the exercise of power is that it is not prejudicial to the assessee. On the facts and the circumstances of the vachao the Ld.

In no case shall the provisions of paragraph badhao be construed so as to impose on a Contracting State the obligation:. Commissioner of Income Tax v.

Her Majesty The Queen is another Canadian judgment which throws light on the principle that the benefits of a double taxation agreement would be available even if the other contracting State in which a particular head of income is to be taxed, chooses not to impose tax on the same. In our view, the proper way to construe a taxing statute, while considering a device to avoid tax, is not to ask whether the provisions should be construed literally or liberally, nor whether the transaction is not unreal and not prohibited by the statute, but whether the transaction is a device to avoid tax, and whether the transaction is such that the judicial process may accord its approval to it.

Union of India v. The said circular provided as follows quoted at p. Report of the working group on non-resident taxation The respondents contend that anti-abuse provisions need not be incorporated in the treaty since it is assumed that the treaty would only be used for the benefit of the parties.

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

First Appellate Authority 0. Radhakrishnan, J, who wrote separate opinions, have concurred with the view in Azadi Bachao Andolan 5 supra. The Authority concluded that he was entitled to the benefits of the convention. Any errors and shortcomings are entirely attributable to me.