https://www.taxtmi.com/caselaws?id=216106 Class-action settlement amounts were analysed as damages for tort-based claims arising from alleged misrepresentation and fraud, with the cause of action treated as arising in India because the wrongful acts and misleading accounts were prepared there; on that basis, the receipt was treated as income accruing or arising in India and taxable as income from other sources rather than capital gains. Once taxability was found, withholding under section 195 was said to arise when funds moved from the segregated Indian account to the initial U.S. escrow account, as that was the stage when control and title effectively passed. Treaty protection was not accepted because the income was regarded as arising from an Indian source. en-us Mon, 27 Aug 2012 00:00:00 +0530 Mon, 01 Jul 2013 11:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=216106 Class-action settlement amounts were analysed as damages for tort-based claims arising from alleged misrepresentation and fraud, with the cause of action treated as arising in India because the wrongful acts and misleading accounts were prepared there; on that basis, the receipt was treated as income accruing or arising in India and taxable as income from other sources rather than capital gains. Once taxability was found, withholding under section 195 was said to arise when funds moved from the segregated Indian account to the initial U.S. escrow account, as that was the stage when control and title effectively passed. Treaty protection was not accepted because the income was regarded as arising from an Indian source. Case-Laws Income Tax Mon, 27 Aug 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=216106