| Case ID |
3ca2a55a-756a-4a7f-8bbd-3e11f4a61f37 |
| Body |
View case body. Login to View |
| Case Number |
WRIT PETITION Nos. 730 AND 1837 OF 2009 38 AND 345 |
| Decision Date |
Jul 14, 2011 |
| Hearing Date |
Jul 14, 2011 |
| Decision |
The court held that the income arising from the transfer of shares in the joint venture company was deemed to have accrued in India to the non-resident company, NCWS. It ruled that the assessment could proceed against both the representative assessee, Indian Rayon, and the non-resident simultaneously due to the complexities involved in the case. The court noted that even after the issuance of a NIL withholding tax certificate under section 195, the tax authorities could still hold Indian Rayon liable as the representative of NCWS due to material misrepresentations in the application. The court emphasized the need for transparency in such transactions and the obligations of the parties involved. |
| Summary |
This case revolves around the tax implications of a joint venture between AT&T Corp. and the Birla Group, specifically regarding the transfer of shares in Birla Communications Limited (now Idea Cellular Limited). The Bombay High Court had to decide whether the capital gains from this transaction were taxable in India. The court found that the income from the sale of shares was indeed deemed to accrue in India, thus making it subject to Indian tax laws. The court also addressed the complexities arising from the involvement of multiple entities and the implications of misrepresentation in tax-related applications. This case highlights the importance of compliance with tax regulations and the need for clear documentation in international business transactions. It underscores the legal responsibilities of both resident and non-resident entities in ensuring proper tax treatment of income derived from Indian sources. |
| Court |
Bombay High Court
|
| Entities Involved |
AT&T Corp.,
Grasim Industries Limited,
Birla Communications Limited,
New Cingular Wireless Services Inc.,
Indian Rayon,
Tata Industries Limited
|
| Judges |
J.P. Devadhar,
A.A. Sayed
|
| Lawyers |
Soli E. Dastur,
R. Murlidhar,
Nitesh Joshi,
Atul K. Jasani,
Mohan Parasaran,
G.C. Shrivastava,
B.M. Chatterjee,
D.K. Chidananda,
Suresh Kumar
|
| Petitioners |
Aditya Birla Nuvo Ltd.
|
| Respondents |
Deputy Director of Income Tax (International Taxation), 4(2), Mumbai
|
| Citations |
2012 SLD 704 = (2012) 342 ITR 308
|
| Other Citations |
CIT v. Eli Lilly & Co. (India) (P.) Ltd. [2009] 312 ITR 225,
Union of India v. Azadi Bachao Andolan [2003] 263 ITR 706
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
9,
148,
163,
195
|