Approved resolution plans extinguish unsubmitted pre-approval tax claims, preventing later recovery outside the insolvency process and preserving a cl...
Transfer pricing comparability requires functional alignment and permits working capital adjustment, while APA margins cannot govern non-covered years...
Treaty benefit, goodwill depreciation and hedging costs: export commission disallowed, while key business deductions and depreciation claims succeeded...
Undisclosed foreign asset classification requires an unexplained source; unrebutted affidavits and corroborative evidence defeated the Black Money Act...
The ITAT held that derivatives are distinct financial instruments separate from shares, as shares are defined under Section 2(84) of the Companies Act and derivatives fall within the definition of securities under Section 2(81) and the Securities Contracts (Regulations) Act. Given that derivatives derive value from underlying assets without conferring ownership rights like voting, gains from their alienation fall under Article 13(4) of the India-Mauritius DTAA, which exempts such income from taxation in India. Consequently, the gains from transfer of derivatives are not taxable in India but in Mauritius. The addition made by the revenue on this account was deleted, and the assessee's appeal was allowed.
The ITAT held that derivatives are distinct financial instruments separate from shares, as shares are defined under Section 2(84) of the Companies Act and derivatives fall within the definition of securities under Section 2(81) and the Securities Contracts (Regulations) Act. Given that derivatives derive value from underlying assets without conferring ownership rights like voting, gains from their alienation fall under Article 13(4) of the India-Mauritius DTAA, which exempts such income from taxation in India. Consequently, the gains from transfer of derivatives are not taxable in India but in Mauritius. The addition made by the revenue on this account was deleted, and the assessee's appeal was allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4803
Join Channel
TaxTMI 
