Delhi HC- situs of an intangible asset is the situs of owner

Sandhya Vashisht In its recent decision, the Delhi High Court has held that the situs of an intangible asset is the situs of the owner of that asset and therefore the transfer of such asset by a non­resident would not be taxable in India even if the asset was being commercially used in India. Introduction Under the Income Tax Act, 1961 (IT Act), all income arising (directly or indirectly) through the transfer of a capital asset situated in India, is deemed to accrue or arise in India and therefore, taxable in India. The Supreme Court, in its landmark judgement in the Vodafone case, had held t...