“Explore key Indian case laws highlighting the significance of residency status and Double Taxation Avoidance Agreement (DTAA) benefits. Understand how these legal precedents impact tax liability and benefits under DTAA. Stay informed for effective tax planning. Disclaimer: This information is for educational purposes only and not legal advice.”
There are several case laws in India where the issue of residency status and Double Taxation Avoidance Agreement (DTAA) benefits has been discussed. Some of these case laws are:
1. Azadi Bachao Andolan v. Union of India (2003): In this case, the Supreme Court of India held that a person who is a resident of India under the Income Tax Act, but a non-resident under the DTAA, is entitled to claim benefits under the DTAA.
2. P.V.A.L. Kulandagan Chettiar v. Assistant Commissioner of Income-tax (2011): In this case, the Madras High Court held that if a taxpayer is a resident of a foreign country under the DTAA, then they cannot be treated as a resident of India for the purposes of the Income Tax Act.
3. Commissioner of Income Tax v. Hyundai Heavy Industries Co. Ltd. (2014): In this case, the Delhi High Court held that where the taxpayer is a resident of South Korea under the DTAA between India and South Korea, they are not liable to pay tax in India on the income earned in South Korea.
4. Sanofi Pasteur Holding SA v. Department of Revenue (2015): In this case, the Bombay High Court held that where the taxpayer is a resident of France under the DTAA between India and France, they are entitled to the benefits of the DTAA and cannot be treated as a resident of India for the purposes of the Income Tax Act.
5. DIT (International Taxation) v. E*Trade Mauritius Ltd. (2016): In this case, the Delhi High Court held that where the taxpayer is a resident of Mauritius under the DTAA between India and Mauritius, they are entitled to the benefits of the DTAA and cannot be treated as a resident of India for the purposes of the Income Tax Act.
These case laws illustrate the importance of residency status in determining the tax liability of a taxpayer and the benefits available under the DTAA. It is crucial for taxpayers to carefully analyze their residency status and take advantage of the DTAA provisions to minimize their tax liability.
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