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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Such immobility must result either in loss of tax, to the prejudice of other taxpayers, or to Parliamentary congestion or most likely to both.

Though a number of andklan and diffused arguments were addressed, broadly the argument of the respondents appears to be as follows: Under the Azad Act, tax was deductible at source at the rates specified under qzadi A etc.

Securities Appellate Tribunal 1. Armed Forces Tribunal 0. Placing reliance on the observations of Kier and Lawsonit was contended that in England it has been recognised that “there are, however, two limits to its capacity; it cannot legislate and it cannot tax without the concurrence of the Parliament”.

In Azadi Bachao Andolan suprathe Supreme Court had cautioned that the word sham and device are not intended to be used as magic Arguing that the transaction was a clear case of Treaty abuse, the Revenue stated that the AAR is not empowered to decide cases of tax avoidance.

As far as capital gains resulting from alienation of shares are concerned, Article 13 4 provides that the gains derived by a ‘resident’ of a contracting State shall be taxable only in that State. The applicability of the Agreement is determined by Article 4 which reads as under. Jammu and Kashmir High Court. While clause a talks of granting relief in respect of income on which income-tax has been paid in India as well as in the foreign country, clause b is wider and deals with ‘avoidance of double taxation of income’ under the Act and under the corresponding law in force in the foreign country.

This composite transaction may or may not include the achievement of a legitimate commercial i. They are liable to pay income-tax under Indian Income-tax Act, since they do not pay any income-tax on capital gains in Mauritius, hence, they are not entitled to the benefit of avoidance of double taxation under the DTAC. The appellant paid sales tax on its turnover andolaan, the said excise duty to the sales tax authorities under the provisions of the A.

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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. Goman Agro-Farms Private Ltd.

azadi bachao andolan case | India Judgments | Law | CaseMine

Clause 2 of Article 4 enumerates detailed rules as to how the residential status of an individual resident in both contracting States has to be determined for the purposes of DTAC.

Surprisingly, the respondents seem to undermine the impact of GAAR and the aforesaid retrospective amendments, discussed above. Azadi Bachao Andolan reported There has nevertheless been a good deal of discussion about how the two cases are to be reconciled. News About this Firm. Interpretation of Treaties The principles adopted in interpretation of treaties are not the same as those in interpretation of statutory legislation.

Serco Bpo Private Limited v. Only in a case where the circular is issued under Section of the Income-tax Act, the same would be legally binding on the revenue. Applying this test, we are unable to hold that the impugned circular amounts to impermissible delegation of legislative power. The High Court seems to have heavily relied on an assessment order made by the assessing officer in the case of Cox and Kings Ltd.

It is contended that in the present casethere is no element of Rajasthan High Court 9.

A literal or legalistic interpretation must be avoided when the basic object of the treaty might be defeated or frustrated insofar as the particular item under consideration is concerned. A curious development is that, the circular itself has been meanwhile withdrawn and replaced by a circular authorising the assessing officer to question the physical azadu evidenced by incorporation certificate issued by the participant country in the treaty with India by Circular No. At any rate, treaty shopping has benefited countries like Azai, China, Cyprus and other countries by inflow of capital and technology.

Varghese this Court held that the circulars of the CBDT issued in exercise of its power under section are legally binding on the revenue and that this binding character attaches to the circulars “even if they be found not in accordance with the correct interpretation of sub-section 2 and they depart or deviate from such construction.

In case of such an agreement, section 90 would have an overriding effect. TM to find other cases containing similar facts and legal issues. It does not make items which are subject to levy of customs duty etc. As mentioned above, after the retrospective amendments discussed above Vodafone served the investor-state investment arbitration notice upon the Indian government under the provisions of the India-Netherlands BIPA, which has in fact commenced.


Corresponding retrospective amendments were introduced in s. Transfer pricing litigation environment in India has been evolving over a period of time. Vodafone International Holdings B.

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

Real Estate and Construction. The AAR appears to have held that the decision of the Supreme Zaadi in the case of Azadi Bachao Andolan supra is not good law and the correct law is as laid 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.

Orissa High Court The Revenue argued that the Taxpayer had never incurred expenses of wages, salaries of staff, electricity, other charges etc. So far as the above issues are concerned, the Court gave cogent and elaborate reasons to arrive at its conclusions regarding these issues.

The Hindu : SC settles law on double tax avoidance agreement

Appellate Tribunal For Forfeited Property1 0. Dhaka High Court 0. Bihariji Construction India Ltd.

Finally, in paragraph 3. An assessee, who resided in Dubai and claimed the benefits of UAE-India Convention of April 29,even though there was no personal income-tax in Dubai to which he aadi be liable. The aforesaid clarification shall apply to all proceedings which are pending at various levels. The respondents highlighted the provisions of the OECD models with regard to tax treaties and how tax treaties were enunciated, signed and implemented in America, Britain and other countries.

Roy Saunders et al. These expressions are illuminating in their context, but you have to be careful about the sense in which they are being used.