ITAT Chennai Clarifies Taxability of Salary for Services Rendered Abroad

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) held that salary received in India by a non-resident for services rendered entirely in Malaysia is not taxable in India. The Tribunal observed that under Section 9(1)(ii) of the Income-tax Act, 1961, salary income accrues where services are performed, not where payment is received.

It further held that, in line with Article 16 of the India–Malaysia DTAA, salaries of a Malaysian tax resident are taxable only in Malaysia unless the employment is exercised in India. The ruling reinforces that mere receipt of income in India does not attract taxation, providing clarity for NRIs working remotely from abroad.

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“London Pride” Not Deceptively Similar to Pernod Ricard’s Whisky Brands – Supreme Court

In Pernod Ricard India Pvt. Ltd. & Anr. v. Karanveer Singh Chhabra (2025 INSC 981), the Supreme Court dismissed the appeal challenging the Madhya Pradesh High Court’s refusal to grant an interim injunction against the use of the mark “London Pride”. The Court held that “Pride” is a generic and laudatory term widely used in the liquor industry, and no standalone registration exists for the word.

The Court emphasized holistic assessment of trademark similarity, rejected dissection of brand elements, and introduced the concept of post-sale confusion, recognizing that consumers of premium whisky are discerning and unlikely to be misled.

This ruling reaffirms that interim relief in trademark disputes requires a strong prima facie case, likelihood of confusion, and balance of convenience.

For any clarification, please write to:

Mr. Vijay Pal Dalmia
Senior Partner
[email protected]

Customs and GST Alert – October 2025

We are pleased to share with you our latest Customs and GST Alert, covering recent judgments and regulatory updates.

We trust that you will find the same useful.

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Delhi HC Rules – ‘Yatra’ is a Generic Term, Not Exclusive

The Delhi High Court, in Yatra Online Ltd. v. Mach Conferences & Events Ltd., dismissed a plea to restrain use of “BookMyYatra”, holding that “Yatra”, meaning travel, is generic and not monopolizable under trademark law.

The Court noted that Yatra’s registrations already disclaim exclusivity over the word and that long use since 2006 had not made the mark distinctive. “BookMyYatra” was found sufficiently distinct, with no prima facie infringement or passing off.

This ruling highlights the difficulty of claiming exclusivity over generic terms, even with extensive use.

For any clarification, please write to:

Mr. Vijay Pal Dalmia
Senior Partner
[email protected]