Case Law Details
DCIT (International Taxation) Vs Foundation Co. of Canada Ltd (ITAT Delhi)
Introduction: The Delhi bench of the Income Tax Appellate Tribunal (ITAT) recently delivered a significant judgment in the case of DCIT (International Taxation) vs. Foundation Co. of Canada Ltd. The case revolved around the tax rate applicable to an amount received by a Canadian resident from an Indian joint venture. The article below provides an in-depth analysis of the case, the issues involved, and the ITAT’s verdict.
Background: The case involved cross-appeals stemming from an order dated 25.09.2018 issued by the Commissioner of Income Tax (Appeals)-42, New Delhi. The appeals related to the assessment year 2010-11.
Revenue’s Appeal: The revenue’s appeal raised several grounds challenging the deletion of an addition of Rs.69,93,54,377/- by the Assessing Officer.
The Assessee: The petitioner, a non-resident corporate entity incorporated in Canada, was engaged in construction and infrastructure development. It had entered into a joint venture with an Indian entity for a specific project.
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