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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There are many principles in fiscal economy which, though at first blush might appear to be evil, are tolerated in a developing economy, in the interest of long term development. First Appellate Authority 0.
Finally, it has shareholders who control it. Board For Industrial Financial Reconstruction. The power is given for the purpose of just, proper and efficient management of the work of assessment and in public interest.
National Green Tribunal No provision of the agreement can possibly fasten a tax liability where the liability is not imposed by this Act; ii if a tax liability is imposed by this Act, the agreement may be resorted to for negativing or reducing it; iii in case of difference between the provisions of the Act and of the agreement, the provisions of the agreement prevail over the provisions of this Act and can be enforced by the appellate authorities and the court.
The Hindu : SC settles law on double tax avoidance agreement
Click to upgrade Your Package to have this feature. In view of what transpired on Hon ble the Supreme Court in the concluding paras of its judgment in Azadi Bachao Andolan supra has rejected the Media, Telecoms, IT, Entertainment.
Section 90which delegates casr to the Central Government, has not been challenged before us, and, therefore, we must proceed on the footing that the section is constitutionally valid. Such immobility must result either in loss of tax, to the prejudice of other taxpayers, or to Parliamentary casee or most likely to both.
In our view, the contention is wholly misconceived.
That, however, desirable it may seem, is to legislate, not to construe, and that is something which is not within judicial competence. Despite falling popularity of the Mauritius route to channel foreign investment in India, we have seen the problems with the Indo-Mauritius Azadii, as highlighted in the Azadi Bachao Andolan case.
Nevertheless, the provisions of this Treaty, and in azaid Article VI and VII, shall apply to matters of taxation only with respect to the following: Therefore, we are left with only questions Nos.
FDI flows towards location with a strong governance infrastructure which includes enactment of laws and how well the legal system works.
International Tax Avoidance Issues: An Analysis of the Indian Law and Policy
An artificial tax avoidance scheme is acceptable if Parliament has said so in legislation, or the Inland Revenue have said so in the form of an extra-statutory concession, 46 or its artificial and evasive nature is outweighed by other interpretative criteria. Tax azdi may be legitimate provided it is within the framework of law.
In our view, the recommendations of the Working Group of the JPC are intended for Parliament to take appropriate action. The JPC might have noticed certain consequences, intended or unintended, flowing from the DTAC and has made appropriate recommendations.
State Consumer Disputes Redressal Commission.
Acse circulars unequivocally provide that taxation of capital gains arising to a resident of Mauritius would be azwdi in Mauritius; and that a TRC would constitute sufficient evidence of residence, respectively. Officer has, however, not noticed and referred to the decision of the Supreme Court in Azadi Bachao Andolan supra which was pronounced on 7 October, i. Many of them do not appear to be too concerned unless the revenue losses are significant compared to the other tax and non-tax benefits from the treaty, or the treaty shopping leads to other tax abuses.
Union of India ITRit is explained that reasonable cause can be reasonably said to be a cause which prevents a man of ave In which an MNE shifts its profits from a high tax jurisdiction to a low casf jurisdiction through use of techniques of profit extraction or by doing business restructuring.
It would be necessary to recount some salient facts in order to appreciate the plethora cqse legal contentions urged. Explanation omitted as not relevant Section 4 provides for Charge of Income-tax. The question posed for our consideration is: Hence, it is opined: It also seems clear that andilan person who would otherwise be subject to comprehensive taxing but who enjoys a specific exemption from tax is nevertheless liable to tax, if the exemption were repealed, or the person no longer qualified for the exemption, the person would be liable to comprehensive taxation.
The Law and Practice of Income Tax — 9d ed. We have already extracted the relevant provisions of Article 4 which provide that, cqse the purposes of the agreement, the term ‘resident of a contracting State’ means any person who under the laws of that State azadk liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of similar nature.
More from this Firm. The basis on which the show cause notice was issued was that the recipients of the show cause notice were mostly ‘shell companies’ incorporated in Mauritius, operating through Mauritius, whose main purpose was investment of funds in India.
In view of the above paragraph 2 in Article X, the Occidental tribunal restricted the FET obligation concerning taxation matters to the three categories therein listed, that is, expropriation, transfers and the observance and enforcement of an bachqo agreement or authorization.