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Back to Basics? | Relevance of ‘beneficial ownership’ questioned when availing capital gains tax benefit under India – Mauritius Tax Treaty
The Mumbai Bench of the Income Tax Appellate Tribunal (Tribunal) in a recent decision has questioned the ‘reading in’ of the condition of ‘beneficial ownership’ (as opposed to legal ownership) when determining a taxpayer’s eligibility to avail capital gains tax benefits under Article 13 of the India – Mauritius Double Taxation Avoidance Agreement (Treaty).
Supreme Court gives major relief to the Revenue in tax controversy relating to reassessment notices issued under the old regime
In a recent order in Union of India & Ors v Ashish Agarwal (Civil Appeal No. 3005/2022) (Order), the Hon’ble Supreme Court (Supreme Court) has held that reassessment notices issued under the old reassessment regime (ie law existing prior to 1 April 2021) are deemed to have been issued under new Section 148A of the Income Tax Act 1961 (IT Act).
High Court rules on what shall be the limitation date for passing of Transfer Pricing Orders
In a recent judgement in DCIT v Pfizer Healthcare India Private Limited (Writ Appeal No. 1148, 1149/2021) (Judgement), a division bench of the Hon’ble Madras High Court (High Court) has upheld single judge bench order which quashed the transfer pricing order (TP Order) pertaining to assessment year (AY) 2016-17 on the ground that it was ‘barred by limitation’ by one day. The High Court ruled that the TP Order was required to be passed on or before 31 October 2019.
High Court affirms real income theory, rules that the consideration for share sale reduced from the escrow account cannot be subject to capital gain tax
The Hon’ble High Court at Bombay (High Court) in the case of Dinesh Vazirani (Taxpayer) [Writ Petition No. 2475 of 2015], has held that the consideration for sale of shares by a seller (Taxpayer) which has been deposited in an escrow account but withdrawn by the purchaser towards the liabilities contemplated under the share purchase agreement (SPA), cannot be taxed in the hands of the Taxpayer.
Clarity on Parity: Bombay High Court upholds Husband’s Claim for Maintenance
The Bombay High Court (HC) in a recent decision in Bhagyashri v Jagdish [Writ Petition Number 2527 of 2021], upheld the decision of a lower court decreeing ‘maintenance pendente lite’ and permanent alimony in favour of the ex-husband.
Recent Developments Regarding Taxation of Crypto Assets in India
With the increasing adoption of crypto-assets in India and the rapid developments in the crypto space, the government introduced a separate regime for levy of income tax on virtual digital assets (VDAs) in the 2022 Budget proposals (Budget VDA Proposals).
Raghav Kumar Bajaj
Raghav Kumar Bajaj is a Partner in the Direct Tax practice group in the Mumbai office. He has worked on several contentious and high-stake matters and has also advised on matters involving corporate and commercial laws.
Hiten Kotak
Hiten Kotak is an Executive Director in the Transaction Tax, Private Client, and Corporate Restructuring practice groups in the Mumbai office. Before joining the Firm, Hiten was leading the Mergers & Acquisition Tax practice at Price Waterhouse & Co. LLP (PwC), Mumbai.