HSBC Bank in Mauritius exempt from tax in India for bona fide banking business

CIT (IT) – 2 Vs HSBC Bank (Mauritius) Ltd. (Bombay High Court) In a significant judgment, the Bombay High Court has ruled in favor of HSBC Bank Mauritius Ltd., holding that as a bona fide banking business in Mauritius, it is exempt from tax in India. This decision pertains to the Assessment Year 2011-12 and stems from an appeal under Section 260A of the Income Tax Act, 1961 against an order by the Income Tax Appellate Tribunal (ITAT). The case, CIT (IT) – 2 Vs HSBC Bank (Mauritius) Ltd., has far-reaching implications for foreign institutional investors and the interpretation of Dou...