Payments to persons under Section 13(3) – must be ‘reasonable’ and ‘commensurate’ to services rendered; does not result in complete denial of exemptions u/s 11/ 12: Delhi HC

As per Sections 11 and 12, income of institutions/ trusts/ organization for “charitable purpose” are exempt from tax under the Act so long as the mandatory conditions under Sections 2(15)/ 12A of the IT Act are satisfied. Section 13 specifies certain prohibited instances of payments/ transactions; for e.g., Section 13(1)(c) provides that Sections 11/12 shall […]

Del HC delineates guiding principles for deciding application for lower/ Nil tax withholding; outlines principles governing DAPE under India-Ireland DTAA

Del HC delineates guiding principles for deciding application for lower/ Nil tax withholding; outlines principles governing DAPE under India-Ireland DTAA In the recent judgment of SFDC Ireland Ltd.[1], the Delhi HC has shed light on an issue of vital importance, viz., the nature of the duty cast upon the Assessing Officer (‘AO’) while deciding an […]

TaxBuzz | Interest paid on Capital Borrowed Outside India for Overseas Investment NOT exigible to tax in India – Assessee eligible for Refund of TDS: Delhi HC

We are pleased to share with you a copy of our in-house publication – “TaxBuzz”, wherein we have analysed the recent ruling of the Delhi High Court in the case of Sun Pharmaceuticals Industries Limited 2025:DHC:564-DB, wherein, the Hon’ble High Court has held that interest paid by an Indian Company on capital borrowed outside India […]

TaxBuzz | Validity of Reassessment Initiated on Assumption of Facts

We are pleased to share with you a copy of our in-house publication – “TaxBuzz”. In this edition, we have analyzed the recent judgment rendered by the Delhi High Court in the case of Grid Solutions OY, wherein reassessment proceedings initiated on the basis of findings of survey conducted in a different assessment year and […]

TaxBuzz | ITAT ruling in the case of SC Lowy

Attached herewith a summary of the recent ruling of the Delhi bench of Income tax Appellate Tribunal in the case of S.C. Lowy P.I. (Lux) S.A.R.L., wherein the Tribunal had examined the principal purpose test introduced by amendment in Multilateral Instruments in the India-Luxembourg tax treaty. This is the first case in India where the […]