Summary: Section 254(2) of the Income Tax Act, 1961, provides power to the Income Tax Appellate Tribunal to amend its order to rectify any mistake apparent on record to ensure fairness without re-visiting the entire case and prolonging litigation. This
Latest from India Tax Law - Page 3
Foreign taxes cannot be allowed as tax deductible expenditure: Chennai ITAT
The Income Tax Appellate Tribunal’s (“ITAT”) Chennai bench in Zoho Corporation Pvt. Ltd. v. Deputy Commissioner of Income Tax,[1] determined that foreign taxes paid by an assessee, which do not qualify for relief under Sections 90 or 91 of
Substance over Form: Supreme Court Clarification on Creation of Permanent Establishment in Cross-Border Services
The question of whether cross-border services rendered by foreign entities would establish a taxable presence in India has been subject to nuanced scrutiny. In a recent ruling,[1] the Hon’ble Supreme Court of India (“SC”) has reaffirmed that economic substance
Treading a fine line: Extension is ultra-vires but valid?
Summary: This blog examines the ongoing judicial debate surrounding extensions of GST limitation periods in the wake of the pandemic and subsequent systemic challenges. It outlines the decision of the Hon’ble Madras High Court, which set aside Notification No. 56/2023
Global Business, Local Tax: The Infosys GST Controversy and its Wider Implications
In an increasingly globalised economy, business activities extend beyond physical borders and traverse geographical boundaries, leading to varied tax implications due to outdated tax legislations that do not fully address these changes. In the service sector, tax obligations can arise
Debunking taxation of cloud services as royalty
Businesses are increasingly integrating cloud computing models into their operations, necessitating unambiguity regarding the position of tax leviable on such transactions under the Income-Tax Act, 1961 (“IT Act”), and tax treaties. Uniformity in the tax treatment of cross-border cloud computing
Delhi ITAT delivers one of the first decisions dealing with Principal Purpose Test
The principal purpose test (“PPT”) has been introduced into the Indian double taxation avoidance agreement (“DTAA”) lexicon through the base erosion and profit shifting (“BEPS”) project of the Organisation for Economic Cooperation and Development (“OECD”) to dissuade sophisticated taxpayers from
Time bound adjudication by revenue authorities: A distant dream or plausible reality?
In a tax system as vast and complex as India’s, time-bound adjudication is not merely a procedural ideal, it is also an essential pillar that promotes ease of doing business, upholds taxpayer trust, promotes administrative efficiency, and sustains the integrity
From courtrooms to clicks: Rethinking why simple GST rectifications require Court intervention
The Goods and Services Tax (“GST”) regime was introduced with the promise of a seamless, technology-driven tax system aimed at reducing cascading effects and ensuring smooth compliance. However, after seven years of its introduction, businesses and taxpayers have found themselves
AMT: Does It Impose Additional Taxes Under Income Tax Bill, 2025?
Background
The Alternate Minimum Tax (“AMT”) has its genesis in the Minimum Alternate Tax (“MAT”), which was introduced to ensure that taxes were paid by even those companies that intended to avoid payment of taxes by engaging in ingenuous tax