Author: Rav Singh
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Tax Exemption v/s Tax Exemption for ‘Beneficial Purpose’: Interpretive Dilemmas
The thumb rule in interpreting a tax statute is that it must be strictly construed and any ambiguities in statutory provisions are resolved in favor of the taxpayer. However, the rule relating to interpretation of ambiguities…
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Rainbow Papers Case and the Art of Misinterpretation
On September 6, 2022, the Supreme Court pronounced its judgment in Rainbow Papers case that unsettled prevailing understanding of the waterfall mechanism under Section 53, Insolvency and Bankruptcy Code, 2016 (‘IBC’). And equally unconvincingly defended the merits of…
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Intersection of Trusts, DTAAs, and IT Act, 1961: Profile of ADIA Case
Abu Dhabi Investment Authority (‘ADIA’) is currently embroiled in a tax dispute in India that involves questions about its eligibility to claim tax benefit under India-UAE DTAA, recognition of foreign trusts in India, and interpretation of…
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Water Cess: States Run into a Constitutional Hurdle
Two States – Himachal Pradesh and Uttarakhand – in their attempts to generate additional sources of revenue have run into constitutional hurdles. Both States attempted to levy a ‘water cess’, a tax on use of water…
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Kerala versus Union: Dispute Lingers
The dispute between the State of Kerala and Union of India involving disagreement on the latter’s scope of power to restrict debt levels of the former, was referred to a Constitution Bench by the Supreme Court.…
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‘Simple and Non-Controversial’: Section 13A, IT Act, 1961
Section 13A was introduced in the IT Act, 1961 via the Taxation Laws (Amendment) Act, 1978 (‘1978 Act’) to grant income tax exemption to political parties. The then Minister of Finance, Shri H.M. Patel, introduced Taxation…
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Including Capital Gains within Scope of Income: A Short Note from Tax History
Provisions to tax capital gains in India’s income tax law were first included in 1947. The Act XII(22) of 1947, amended Income Tax Act, 1922 (‘IT Act, 1922’) – predecessor to India’s current income tax statute,…
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No Service Tax on Carried Interest: GST Applicability Remains an Open Question
In a recent decision the Karnataka High Court has held that a Venture Capital Fund (‘VCF’) is not liable for service tax on carried interest. The decision reversed Customs, Excise & Service Tax Appellate Tribunal’s (‘CESAT’) ruling which was under…
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Portuguese Civil Code, Income Tax, and Companies Act: Understanding Beneficial Ownership
The Bombay High Court, in a recent judgment, had to unravel the interplay of Portuguese Civil Code, IT Act, 1961, and the Companies Act, 1956 - among other issues - to ascertain the tax liability of assessees.…
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Unfamiliar Terrain of Loyalty Points and GST
Levying GST on atypical forms of consideration is a familiar problem under GST regime. One such problem relates to the levy of GST on vouchers issued by a supplier. While we have a modicum of certainty on the…
