Dividend income derived by assessee from a company in Malaysia not liable to be taxed in the hands of the assessee in India under any of the provisions of the Act – SC

Dy. Commissioner of Income Tax Vs. Torqouise Investment & Finance Ltd. (Supreme Court of India)- Whether ITAT was justified in holding that dividend income earned by the Assessee amounting to Rs. 21,35,766/- from a Company called Pan Century Edible Oils SDN, BHD.  Malaysia is not liable to be taxed in the hands of Assessee in India under any of the provisions of the Income Tax Act?

High Court, following the decision of the Madras High Court in the case of CIT vs. SRM Firm & Ors. reported in 208 ITR 400 which was affirmed by the Supreme Court in  the case of CIT vs. PVAL Kulandagan Chettiar reported in 267 ITR 654, held that the Tribunal was justified in holding that dividend income derived by the assessee from a company in Malaysia is not liable to be taxed in the hands of the assessee in India under any of the provisions of the Act. Accordingly, the High Court has answered question No.1 in favour of the assessee and against the department.

IN SUPREME COURT OF INDIA

Appeal (Civil) No. 4485 of 2007

Dy. Commissioner of Income Tax, Ujjain

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