Saturday International Tax Gyaan
Tiger Global International v. AAR Case
A Tax Residency Certificate alone won’t secure treaty relief. The Supreme Court denied Mauritius DTAA benefits to Tiger Global entities, citing lack of commercial substance and US-based control. A landmark ruling reinforcing that structure without economic reality won’t survive scrutiny.
Binny Bansal v. DCIT Case
Moving abroad doesn’t automatically change your tax residency. The Tribunal examined Binny Bansal’s status post-Singapore move, clarifying the application of Section 6 explanations. A high-stakes case with treaty benefits and a ₹136 crore refund at play.
Toshiba Corporation v. DCIT Case
When the Indian entity controls employment terms, it becomes the employer of record. Delhi ITAT ruled that reimbursements to Toshiba Japan were not FTS, distinguishing genuine employment from service arrangements under the India-Japan DTAA.
Vijay Mariappan Austin Prakash v. ACIT Case
Significant Economic Presence cannot override treaty protection. A UAE consultant successfully relied on DTAA provisions to keep ₹8.28 crore of advisory income outside India’s tax net. Reinforces treaty supremacy over domestic deeming rules.
Nunhems Netherlands B.V. v. ACIT Case
Not all technical services qualify as taxable. Delhi ITAT split Nunhems’ receipts—taxing scientific services as royalty while exempting IT support reimbursements for failing the “make available” test. A nuanced take on classification under DTAA.
India-France DTAA Amending Protocol 2026 Treaty Update
The 2026 protocol introduces major changes such as Service PE, revised dividend rates, “make available” for FTS, and removal of MFN clause. A significant overhaul aimed at modernizing cross-border taxation, pending ratification.
Bank of India v. ACIT Case
FTC is tied to when income is taxed and not when tax is paid. Mumbai ITAT allowed Bank of India to claim credit in a later year when tax liability actually arose. A key clarification for cross-border tax planning.
LinkedIn Technology Information v. PCIT Case
Tax rules can’t penalize non-residents more harshly than residents. Delhi ITAT ruled that 100% disallowance under Section 40(a)(i) violated DTAA provisions. A strong precedent on maintaining parity in tax treatment.
The Principle of Non-Discrimination in India's Tax Treaties Concept
A deep dive into Article 24 of the OECD Model and India’s treaty approach. Covers nuances across nationality, PE taxation, and deductibility, while highlighting divergences in India’s implementation. Timely in light of recent rulings.
SMS Group GmbH v. ACIT Case
Offshore supply executed entirely outside India cannot be taxed merely due to a PE. Delhi ITAT separated equipment supply from onshore services, taxing only qualifying technical services. Reinforces transaction-level analysis.
Kaushal Ganpatbhai Patel v. ITO Case
Routing foreign salary to an NRE account doesn’t make it taxable in India. Ahmedabad ITAT reaffirmed that income accrues where services are rendered. A crucial clarification for non-resident taxpayers.
DCIT v. Thogarchedu Subha Sri Case
Delay in submitting TRC/Form 10F cannot deny substantive DTAA relief. Hyderabad ITAT allowed retrospective validity, ensuring treaty benefits remain intact. A taxpayer-friendly ruling on procedural compliance.