Huntsman Investment [Netherlands] BV: When Does a Buy-Back Become a Corporate Reorganisation

Huntsman Investment [Netherlands] BV Vs ADIT (ITAT Delhi) Why This Case Matters The question at the heart of this judgment is deceptively simple: when an Indian subsidiary buys back shares from its Dutch parent company, do the resulting capital gains stay taxable in India — or does the India–Netherlands tax treaty return exclusive taxing rights to the Netherlands? The answer turned out to be complex enough to divide a bench, trigger a Third Member reference under Section 255(4) of the Income Tax Act, and generate three distinct judicial opinions before a final 2:1 majority emerged in favou...