Case Law Details
Apollo Tyres Ltd. Vs CIT (Karnataka High Court)
The case of Apollo Tyres Ltd. vs CIT before the Karnataka High Court delves into the intricacies of Double Taxation Avoidance Agreements (DTAA) and the necessity of notifications for their provisions. In this matter concerning Assessment Years 2015-2016 and 2016-2017, the petitioner, Apollo Tyres Ltd., challenges the order of the Commissioner of Income Tax (International Taxation) [CIT (IT)], Bangalore.
Background: The central issue revolves around whether a separate notification by the Central Government is required to enforce a subsequent Treaty (DTAA) when a company is governed by a pre-existing DTAA. In this case, the petitioner was initially under the India–Netherlands DTAA but questioned the applicability of the India–Finland DTAA.
Key Points from the Order:
1. Automatic Application of Subsequent Treaties: The Commissioner held that if a subsequent Treaty between India and another OECD country provides more beneficial clauses, it automatically applies to the existing DTAA. This was based on Clause-12.4.2 of the Protocol in the India–Netherlands DTAA.
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