Denial of Preferential Treatment under SAFTA overturned where unchallenged Country of Origin certificate warranted exemption under Notification benefi...
Continuing offence of money-laundering: discharge set aside and proceedings reinstated where laundering continued after inclusion of predicate offence...
Dominant issue: whether capital gains on sale of shares held by Mauritius-incorporated companies are taxable in India given residence, treaty relief and anti-avoidance rules. The Court found prima facie that effective management/residence and Article 13's scope were contestable and that the transactions lacked commercial substance; GAAR (and alternatively JAAR/substance-over-form) could pierce the structure. Reasoning: documentary timeline, board approvals post cut-off, contra-factual tax positions and burden shift under Section 96(2) established a prima facie tax-avoidance scheme. Outcome: applications to AAR were correctly rejected under proviso (iii) to Section 245R(2); capital gains on transfers after 01.04.2017 are taxable in India and Chapter X-A applies. - SC
Dominant issue: whether capital gains on sale of shares held by Mauritius-incorporated companies are taxable in India given residence, treaty relief and anti-avoidance rules. The Court found prima facie that effective management/residence and Article 13's scope were contestable and that the transactions lacked commercial substance; GAAR (and alternatively JAAR/substance-over-form) could pierce the structure. Reasoning: documentary timeline, board approvals post cut-off, contra-factual tax positions and burden shift under Section 96(2) established a prima facie tax-avoidance scheme. Outcome: applications to AAR were correctly rejected under proviso (iii) to Section 245R(2); capital gains on transfers after 01.04.2017 are taxable in India and Chapter X-A applies. - SC
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4813 
Join Channel 
